Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass through two departments: Cutting and Coating. The following info pertains to May activity in the cutting department: Cost Data Total cost of beginning inventory on May 1 $44,800 Direct Materials Cost incurred in May 200,000 Conversion costs incurred in May 87,200 Physical Unit data Units in process in May 8,000 sets Units started in May 50,000 sets Units in process in May 31 10,000 sets Percentage of completion data Direct materials May 1 100% Conversion May 1 80% Direct Materials May 31 100% Conversion, May 31 20% A. Prepare a schedule showing (1) the number of mat sets transferred from Cutting to Coating in May and (2) the number of mat sets started and completed by the cutting department. B. Compute the equivalent units of input resources for the cutting department in May C. Compute the cost per equivalent unit of input resource for the Cutting Department in May D. Prepare the summary journal entry required to transfer the cost of completed mat sets from the cutting dept to the coating dept in May E. Compute the total cost assigned to the cutting dept ending inventory on May 31 My answers so far: Beginning work in process May 1 8,000 Units started by Cutting Dept in MAy 50,000 Total units in process during May 58,000 Ending work in process, May 31 Units transferred to Coating Dept Beginning work in Process May 1 Units started and completed in May Please show A-E It's very helpful when you show how its done. I really appreciate that so I can figure it out in the future. Thanks.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass through two departments: Cutting and Coating. The following info pertains to May activity in the cutting department:
Cost Data
Total cost of beginning inventory on May 1 $44,800
Direct Materials Cost incurred in May 200,000
Conversion costs incurred in May 87,200
Physical Unit data
Units in process in May 8,000 sets
Units started in May 50,000 sets
Units in process in May 31 10,000 sets
Percentage of completion data
Direct materials May 1 100%
Conversion May 1 80%
Direct Materials May 31 100%
Conversion, May 31 20%
A. Prepare a schedule showing (1) the number of mat sets transferred from Cutting to Coating in May and (2) the number of mat sets started and completed by the cutting department.
B. Compute the equivalent units of input resources for the cutting department in May
C. Compute the cost per equivalent unit of input resource for the Cutting Department in May
D. Prepare the summary
E. Compute the total cost assigned to the cutting dept ending inventory on May 31
My answers so far:
| Beginning work in process May 1 | 8,000 |
| Units started by Cutting Dept in MAy | 50,000 |
| Total units in process during May |
58,000
|
| Ending work in process, May 31 | |
| Units transferred to Coating Dept | |
| Beginning work in Process May 1 | |
| Units started and completed in May |
Please show A-E It's very helpful when you show how its done. I really appreciate that so I can figure it out in the future. Thanks.
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