Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and testing). They use Process Costing (FIFO method). On July 31, they had the following costs in WIP-Assembly: Machining $ 265,750 11,250 Assembly Material 78,125 $ 355,125 Assembly Conversion There were 1,250 of the parts on hand at 7/31. The parts were 80% complete wrt Assembly Materials costs and 50% complete wrt Assembly Conversion costs. During August, 10,000 parts were transferred in from the Machining department. The cost of the parts transferred in was $2,009,250 1,500 parts were not yet complete on August 31st. These parts were 100% complete wrt Assembly Materials costs and 60% complete wrt Assembly Conversion costs. Total manufacturing costs incurred in the Assembly department in August were: Material $ 112,125 Conversion 1,190,625 $1,302,750 1. What was the cost per equivalent unit for August for transferred in costs from Machining? (Round to two decimals) 2. What was the cost per equivalent unit for August for Assembly Material? (Round to two decimals) 3. What was the cost per equivalent unit for August for Assembly Conversion? (Round to two decimals) 4. What was the total cost of the parts transferred to WIP – Testing in August) (Do NOT round your unit costs when calculating total costs transferred out) 5. What was the total cost of the parts in ending inventory at 8/31? (Do NOT round your unit costs when calculating cost in ending inventory) 6. Assuming the cost of the testing the part is $15 per unit, what's Perfect Part's total costs per unit to make the airplane part? (HINT: You should be looking at the cost of the units transferred out) Perfect Parts manufactures a part used in building airplanes. They have three departments (machining, assembly, and testing). They use Process Costing (FIFO method). On July 31, they had the following costs in WIP-Assembly: Machining $ 265,750 11,250 Assembly Material 78,125 $ 355,125 Assembly Conversion There were 1,250 of the parts on hand at 7/31. The parts were 80% complete wrt Assembly Materials costs and 50% complete wrt Assembly Conversion costs. During August, 10,000 parts were transferred in from the Machining department. The cost of the parts transferred in was $2,009,250 1,500 parts were not yet complete on August 31st. These parts were 100% complete wrt Assembly Materials costs and 60% complete wrt Assembly Conversion costs. Total manufacturing costs incurred in the Assembly department in August were: Material $ 112,125 Conversion 1,190,625 $1,302,750 1. What was the cost per equivalent unit for August for transferred in costs from Machining? (Round to two decimals) 2. What was the cost per equivalent unit for August for Assembly Material? (Round to two decimals) 3. What was the cost per equivalent unit for August for Assembly Conversion? (Round to two decimals) 4. What was the total cost of the parts transferred to WIP – Testing in August) (Do NOT round your unit costs when calculating total costs transferred out) 5. What was the total cost of the parts in ending inventory at 8/31? (Do NOT round your unit costs when calculating cost in ending inventory) 6. Assuming the cost of the testing the part is $15 per unit, what's Perfect Part's total costs per unit to make the airplane part? (HINT: You should be looking at the cost of the units transferred out)
Expert Answer:
Answer rating: 100% (QA)
1 UNITS TO BE ACCOUNTED FOR Physical Units Work in process July 31 1250 Started into production duri... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
Students also viewed these accounting questions
-
The Studley Company adds direct materials at the beginning of the manufacturing process. On May 1, 2,200 units were in process. All direct materials had been added and they were 40 % complete as far...
-
The following values apply for a part used in their production (purchased from external suppliers): D = 12,500 Q = 250 P = $45 C = $4.50 Required: 1. For Thomas, calculate the ordering cost, the...
-
DeMarcus Industries manufactures a part used in several models of its automatic dishwashers Monthly production costs for 5.000 units are Direct...
-
Super Slushie charges $6.50 for a medium slushie and $9 for a large slushie. Their total net marketing contribution is $28,000 per week. They want to raise the price of each slushie 12.5% next month...
-
Construct a 95% confidence interval for the population proportion of adults (a) From the East who say that traffic congestion is a serious problem. (b) From the Midwest who say that traffic...
-
Suppose a firm has had the historic sales figures shown as follows. What would be the forecast for next year's sales using the naïve approach? Year: Sales 2012 2013 2014 2015 2016...
-
The use of statistical sampling techniques in an examination of financial statements does not eliminate judgmental decisions. Required: a. Identify and explain four areas where judgment may be...
-
The Nevens Company uses a periodic inventory system. During November the following transactions occurred: Required Compute the cost of goods sold for November and the inventory at the end of November...
-
Two forces are given by the two vectors: F =ai+bj+ck and F = di+ej+fk where a = 6, b = -5, c = 6, d = -3, e = 5 and f= 8 Determine the magnitude of the resultant force. Give your result to three...
-
Multi Enterprises Ltd. is a Canadian-controlled private corporation whose fiscal period coincides with the calendar year. For the year 2020, the company's taxable income was calculated as follows:...
-
Is it ethical for big organizations such as pharmaceutical companies to invest in corporate bonds. why or why not?
-
For the following exercise, use the logistic growth model f(x) 14. Find and interpret f(4). Round to the nearest tenth. = 150 -2x 1+8e
-
5. If you are multiplying a matrix A by a vector, what is the relationship between the the number of columns in A and the dimension of ?
-
Determine if V 1 = ( 2 , - 1 , 3 ) V 2 = ( 4 , 1 , 2 ) V 3 ( 8 , - 1 , 8 ) Form a set that spans R ^ 3
-
For the matrix 1 1 1 1 X' = 4 -2 3-5 compute P= X(X'X)-'X' and M = I-P (a) Verify that MP = 0. (b) Let Q = 1 3 2 8 and X = XQ. Compute the P and M based on X instead of X.
-
Assume f(x) is the closed-form expression for the following summation n 3. f(x) = x=1+ x + x + x + ... + x " i=0 And let g(x) represent the closed-form expression for the following summation: n 9(x)...
-
sovereign wealth fund. How might such a fund help to protect (and even develop) the domestic industries currently under threat.
-
Listed below are common types of current liabilities, contingencies, and commitments: a. Accounts payable b. Bank loans and commercial paper c. Notes payable d. Dividends payable e. Sales and excise...
-
Reggie Wilmore has just started a new businessbuilding and installing custom garage organization systems. Reggie builds the cabinets and work benches in his workshop, then installs them in clients...
-
During March, Hanks Manufacturing started and completed 30,000 units. In beginning work in process, there were 5,000 units 60 percent complete with respect to conversion costs. Materials are added at...
-
Starling Co. manufactures one product with a selling price of $18 and variable cost of $12. Starlings total annual fixed costs are $38,400. If operating income last year was $28,800, what was the...
-
Applying the criterion for equilibrium, derive the Clausius-Clapeyron equation.
-
For the system methanol (1)-methyl acetate (2), the activity coefficients for components 1 and 2 are represented by where \[ \begin{aligned} \ln \gamma_{1} & =A x_{2}^{2} \quad \text { and } \quad...
-
The pure component vapour pressure of two organic liquids \(\mathrm{X}\) and \(\mathrm{Y}\) by Antoine equations are given by \[ \ln P_{1}^{\text {Sat }}=14.35-\frac{2942}{T+220} \] and \[...
Study smarter with the SolutionInn App