Assignment #3_Product Costing rying. After leaving the Drying ouse for shipment to Part 2 (25 marks) Cheetah Accessories uses four departments to reduce handles for kitchen cabinets: For handles for kitchen cabinets: Forming requires mixing the raw materials, Moulding. Spraving and Drying. After leaving the Department, the handles are packaged and sent to the Finished Goods warehouse for shipmer retail outlets. The following data relates to the Spraying Department for the month of June: During the month, 2,000 handles valued at $275 each were transferred from the Moda Department to the Spraying Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205,200 Process inspection occurs during the process and normally no losses are expected at this stage. tion. Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 80% Conversion costs 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Moulding 100% Materials added 60% Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department . cost of the unexpected losses cost of ending work in process inventory in the Spraying Department (3 marks) (e) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, calculate Chrome Accessories true loss for the Spraying Department. (2 marks) Part 2 (25 marks) Cheetah Accessories les four departments to reduce handles for kitchen cabinets: Form requires mixing the raw materials, Moulding Spring and Drvin After leaving the Drying Department, the handles are packaged and sent to the Finished e s warehouse for shipment 1 retail outlets The following data relates to the Spraying Department for the month of June During the month. 2,000 handles valued at $9 euch were transferred from the Molo Department to the Spraying Department Other production costs incurred during the month are summarized as follows Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205.200 Process inspection occurs during the process and normally no longes are expected at this stage- However, during the month 200 handles were reiected at inspection Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree completion: Transfer from Moulding 100% Direct material added 80% Conversion costs 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods Work-in-progress at the end of June had reached the following degree of completion Transfer from Moulding 100% Materials added 60% Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department . cost of the unexpected losses . cost of ending work in process inventory in the Spraying Department (3 marks) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, calculate Chrome Accessories true loss for the Spraying Department. (2 marks) "Those who fail to prepare, are preparing to fall Uriel Salmon Page 3 (c) Assignment #3_Product Costing rying. After leaving the Drying ouse for shipment to Part 2 (25 marks) Cheetah Accessories uses four departments to reduce handles for kitchen cabinets: For handles for kitchen cabinets: Forming requires mixing the raw materials, Moulding. Spraving and Drying. After leaving the Department, the handles are packaged and sent to the Finished Goods warehouse for shipmer retail outlets. The following data relates to the Spraying Department for the month of June: During the month, 2,000 handles valued at $275 each were transferred from the Moda Department to the Spraying Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205,200 Process inspection occurs during the process and normally no losses are expected at this stage. tion. Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 80% Conversion costs 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Moulding 100% Materials added 60% Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department . cost of the unexpected losses cost of ending work in process inventory in the Spraying Department (3 marks) (e) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, calculate Chrome Accessories true loss for the Spraying Department. (2 marks) Part 2 (25 marks) Cheetah Accessories les four departments to reduce handles for kitchen cabinets: Form requires mixing the raw materials, Moulding Spring and Drvin After leaving the Drying Department, the handles are packaged and sent to the Finished e s warehouse for shipment 1 retail outlets The following data relates to the Spraying Department for the month of June During the month. 2,000 handles valued at $9 euch were transferred from the Molo Department to the Spraying Department Other production costs incurred during the month are summarized as follows Direct Materials Added $171,000 Direct Manufacturing Wages $425,600 Manufacturing Overhead $205.200 Process inspection occurs during the process and normally no longes are expected at this stage- However, during the month 200 handles were reiected at inspection Rejected units from this department are sold as scrap at $400 each. These units had reached the following degree completion: Transfer from Moulding 100% Direct material added 80% Conversion costs 50% During June, 1,400 handles were completed, packaged and transferred to Finished Goods Work-in-progress at the end of June had reached the following degree of completion Transfer from Moulding 100% Materials added 60% Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Spraying Department at the beginning of the period. Required: (a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding & Direct materials added) and conversion costs. (10 marks) (b) Compute the: total cost of the handles completed and transferred out of the Drying Department . cost of the unexpected losses . cost of ending work in process inventory in the Spraying Department (3 marks) Post all transactions to the Work in Process Inventory - Spraying Department T-account. What is the ending balance? (5 marks) (d) Prepare the journal entries for the use of total direct materials, direct labour incurred, manufacturing overhead applied and the cost of the units completed and transferred out to the Drying Process (5 marks) (e) Given that 25% of the unexpected losses were as a result of pilferage, calculate Chrome Accessories true loss for the Spraying Department. (2 marks) "Those who fail to prepare, are preparing to fall Uriel Salmon Page 3 (c)