a) Prepare a statement of equivalent production to determine the equivalent units for direct materials  (From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for  direct materials and conversion costs.  (b) Calculate the: - Total cost of units completed and transferred to the Packaging Department - Cost of the unexpected losses - Cost of ending work-in-process inventory in the Polishing Department

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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(a) Prepare a statement of equivalent production to determine the equivalent units for direct materials 
(From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit for 
direct materials and conversion costs. 


(b) Calculate the:
- Total cost of units completed and transferred to the Packaging Department
- Cost of the unexpected losses
- Cost of ending work-in-process inventory in the Polishing Department 


(c) Complete All Things Brass Work-In-Process Inventory – Polishing Process T-account, clearly showing the 
ending balance.

All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing
Moulding. Polishing and Packaging Costs incurred in the Polishing Department during January are
summarized as follows:
WIP - Polishing Process A/C
January 1 Bal.
Transfer from Moulding
Direct Materials Added
1,310,000
391,600
20,000
Direct Labour
638,000
Manufacturing Overhead
307,400
Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the
processing operation, at which point damaged handles are separated from good handles and sold as scrap
to local furniture manufacturers at $85 each.
At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
40%
Conversion costs
20%
Work-in-progress at the end of January was 4,000 handles and had reached the following degree of
completion:
Transfer from Moulding
100%
Direct material added
S0%
Conversion costs
50%
Direct materials added and conversion costs are incurred uniformiy throughout the process.
Transcribed Image Text:All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing Moulding. Polishing and Packaging Costs incurred in the Polishing Department during January are summarized as follows: WIP - Polishing Process A/C January 1 Bal. Transfer from Moulding Direct Materials Added 1,310,000 391,600 20,000 Direct Labour 638,000 Manufacturing Overhead 307,400 Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the processing operation, at which point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each. At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 40% Conversion costs 20% Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion: Transfer from Moulding 100% Direct material added S0% Conversion costs 50% Direct materials added and conversion costs are incurred uniformiy throughout the process.
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