Silks and Ribbons is a clothing company. It produces all of its products in 2 departments: cutting
Question:
Silks and Ribbons is a clothing company. It produces all of its products in 2 departments: cutting department and sewing department. As work in cutting is completed, each cloth is immediately transferred to sewing. Direct materials are added when the sewing department process is 90% complete. Conversion costs are added evenly during the sewing process. When the sewing for each cloth is done, it is immediately transferred to Finished Goods. Silks and Ribbons uses the weighted-average method of process costing for the sewing department. The information for the sewing department for February 2020 are as follows:
a = Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 70%
b = Degree of completion: transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%.
QUESTIONS :
1. For each cost category, compute equivalent units in the sewing department
2. For each cost category, summarize total sewing department costs for February and calculate the cost per equivalent unit
3. Assign costs to units completed (and transferred out) and to units in ending work in process
4. Prepare journal entries for February transfers from the cutting department to the sewing department and from the sewing department to Finished Goods
Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura