During May,Anderson Tile Industries reports the following in its Tile-Finishing Department: 1. Complete the five-step process costing
Question:
During May,Anderson Tile Industries reports the following in its Tile-Finishing Department:
1. | Complete the five-step process costing procedure to assign the Tile-Finishing Department's total costs to account for to units completed and to units in ending work in process inventory. (Note: Don't confuse the Tile-Finishing Department with finished goods inventory. The Tile-Finishing Department is Anderson Tile's second process. The tiles do not become part of finished goods inventory until they have completed the secondprocess, which happens to be called the Tile-Finishing Department.) |
2. | Make the journal entry to transfer the appropriate amount of cost to Finished Goods Inventory. |
3. | What is the cost of making one unit of product from start tofinish? |
Tile-Finishing Department Data for May | |
Information about units: | |
Beginning work in process, May 1 (20% complete as to direct materials, 70% complete as to conversion work). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000 units |
Transferred in from Tile-Forming Department duirng May. . . . . . . . . . . . . . . . . . | 16,000 units |
Completed and transferred out to Finished Goods Inventory during May. . . . . . . | 15,000 units |
Ending work in process, May 31 (36% complete as to direct materials, 80% complete as to conversion work). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000 units |
Information about costs: | |
Work in process, May 1 (transferred-in costs, $14,000; direct materials costs, $800; conversion costs, $5,900). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $20,700 |
Transferred in from Tile-Forming Department during May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 42,340 |
Tile-Finishing Department direct materials added during May. . . . . . . . . . . . . . . . . | 7,240 |
Tile-Finishing Department conversion costs added during May. . . . . . . . . . . . . . | 24,550 |
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby