Spuds Chips Ltd (SCL) processes crinkle-cut potato chips. Production requires three (3) processes: Cutting, Cooking and Packaging.
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Spuds Chips Ltd (SCL) processes crinkle-cut potato chips. Production requires three (3) processes: Cutting, Cooking and Packaging. In the Cooking Department direct materials, vegetable oil (90%), is added to the transferred-in cut potatoes from the cutting department to cook. At the end of the process, the remaining 10% of the direct materials, herbs and spices are added. The company uses the First-in, First-out (FIFO) method. Production data for the Cooking Department in June are as follows:
Cooking Department | |
Beginning WIP# inventory (kg) | 12,000 |
Beginning WIP inventory costs | |
Transferred-in materials ( ? % complete) | $2,400 |
Materials (? % complete) | $600 |
Conversion (70% complete) | $1,260 |
June data | |
Started (kg) | 129,000 |
June costs | |
Transferred-in costs | $25,800 |
Materials | $7,746 |
Conversion | $18,570 |
Completed and Transferred-out (kg) | 130,000 |
Ending WIP inventory (kg) | ? units |
Conversion (20% complete) |
# WIP: Work in process
Required:
- Prepare (a) a quantity (physical flow) schedule and (b) compute the equivalent units for all inputs.
- Calculate the costs per equivalent unit for all inputs. Round up your answers to the nearest cent.
- Calculate:
- a. the total cost of goods transferred out; and
b. the cost of ending Work in Process.Working $ $ Marks - Prepare journal entries for the following transactions:
- Transferred-in materials costs; and
- Conversion costs for the period
Item. Account name Debit $ Credit $ - Briefly describe the difference between Weighted average method and FIFO method, in the calculation of (a) equivalent units and (b) cost per equivalent unit.
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