Recall that In the Doghouse has three processes. The frame, floor and interior walls of a batch
Question:
Recall that In the Doghouse has three processes. The frame, floor and interior walls of a batch of doghouses is built in process A at In the Doghouse. It is estimated that process A completes 35% of the production process. In process B, the insulation, exterior walls and roof base are added. It is estimated that process B completes the next 40% of the production process. The shingles are added and the exterior is stained in process C, which completes the production process. Consider each of the following scenarios independently. Scenario 1: Assume that two batches of doghouses were started and completed during the current month. The total cost incurred for the completed units is $3,868. Four more batches were also placed into production during the month. These four batches were completed through process A for a cost of $287.20. Determine the equivalent units for the current month and the unit cost for the current month. (Don't forget that one batch is equal to ten doghouses.) Step 1: Calculate equivalent units.
Step 2: Calculate the per unit cost. (Round to the nearest cent.)
Scenario 2: Assume that three batches of doghouses were started and completed during the current month for a total cost of $7,386. Two more batches were also placed into production. These two batches were completed through process A and process B. The cost for those two batches is $3,684. Determine the equivalent units for the current month and the unit cost for the current month. (Don't forget that one batch is equal to ten doghouses.) Step 1: Calculate equivalent units.
Step 2: Calculate the per unit cost. (Round to the nearest cent.)
Scenario 3: Assume that one batch of doghouses was started and completed during the current month. Use the cost table for each process determined back in the first section of this problem to determine the cost of the completed batch. Four more batches were also placed into production during the month. The four batches were completed through process A and process B as well as part of process C. At the end of the month, it is estimated that the four batches in ending Work in Process are 90% complete. The total costs for these four batches is $8,856, which includes the costs transferred from process A and process B and the costs incurred in process C as of the end of the month. Determine the equivalent units for the current month and the unit cost for the current month. (Don't forget that costs listed in the table are for one batch of ten doghouses.) Step 1: Calculate equivalent units.
Step 2: Calculate the per-unit cost. (Round to the nearest cent.)
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Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller-nobles, Brenda L. Mattison, Ella Mae Matsumura