The T. L. Lin Company manufactures a variety of natural fabrics for the clothing industry in a
Question:
The T. L. Lin Company manufactures a variety of natural fabrics for the clothing industry in a suburb of Shanghai. The following data in Chinese currency called yuan pertain to the month of October.
Work-in-process inventory, October...................................... 1 50,000 units
Direct materials: 60% complete...............................................55,440 yuan
Conversion: 30% complete....................................................54,425 yuan
Costs incurred during October
Direct materials................................................................820,400 yuan
Conversion...................................................................1,350,600 yuan
During October, 200,000 units were completed and transferred out. At the end of the month, 30,000 units (direct materials 80% and conversion 50% complete) remain in work-in-process inventory.
Required
Calculate each of the following amounts using weighted-average process costing.
1. Equivalent units of direct materials and conversion.
2. Unit costs of direct materials and conversion.
3. Cost of goods completed and transferred out during October.
4. Cost of the work-in-process inventory at October 31.
5. Check the most recent issue of The Wall Street Journal or go to www.federalreserve.gov/releases/H10/hist/ to learn the exchange rate between the U.S. dollar and the Chinese yuan.
Exchange RateThe value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
Step by Step Answer:
Cost Management A Strategic Emphasis
ISBN: 978-0078025532
6th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins