HayD Company has the data attached in the table below. Units in departments 1&2 are inspected when the production process reaches 70% of the conversion cost. Meanwhile, 90% of the material has been given to spoiled units. There is no salvage value for spoiled units. Spoiled units are accounted for in both departments' production cost reports. Spoilage fees are charged to Manufacturing Overhead.

 

Questions :

a. Prepare production cost reports for department 1: Assembly and department 2: Finishing using the FIFO method. Use two decimal places.

b. Prepare journal entries to record the use of materials, labor, overhead, finished goods, and spoilage in departments 1 and 2 assuming labor wages have not been paid and overheads still have to be paid.

c.  Calculate the unit cost of the production.

 

Transcribed Image Text:

Units in beginning inventory:``` Assembly (70% materials, 50% labor, 40% overhead) Finishing (90% materials, 70% labor, 60% overhead) Units started in process in Assembly Department this period Units transferred from Assembly to Finishing Department this period Units transferred from Finishing to Finished Goods this period UNITS SPOILED in process this period Units in ending inventory: Assembly (90% materials, 80% labor, 70% overhead) Finishing (100% materials, 80% labor, 100% overhead) Cost added during the current period: Materials Labor wwwwwww Overhead Cost added preceding dep (TIC) Cost in beginning inventory: Materials Labor Overhead Cost from preceding department Assembly Dep 4200 20.200 19700 500 ??? 260000000 46000000 90000000 26000000 14000000 11500000 FinishingDep ??? ??? 21200 500 4200 70000000 52000000 70000000 372630103 10800000 12000000 13200000 12000000 Units in beginning inventory:``` Assembly (70% materials, 50% labor, 40% overhead) Finishing (90% materials, 70% labor, 60% overhead) Units started in process in Assembly Department this period Units transferred from Assembly to Finishing Department this period Units transferred from Finishing to Finished Goods this period UNITS SPOILED in process this period Units in ending inventory: Assembly (90% materials, 80% labor, 70% overhead) Finishing (100% materials, 80% labor, 100% overhead) Cost added during the current period: Materials Labor wwwwwww Overhead Cost added preceding dep (TIC) Cost in beginning inventory: Materials Labor Overhead Cost from preceding department Assembly Dep 4200 20.200 19700 500 ??? 260000000 46000000 90000000 26000000 14000000 11500000 FinishingDep ??? ??? 21200 500 4200 70000000 52000000 70000000 372630103 10800000 12000000 13200000 12000000