Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $24,500. During the accounting period, the department incurred $40,500 of transferred-in cost, $23,500 of materials cost, $60,500 of labor cost, and $32,500 of applied overhead cost. The department processed 6,050 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost of the finished goods inventory transferred out of the assembly department? Cost Allocation a. To finished goods a. To ending inventory b. To finished goods b. To ending inventory $ 39,000 $ 168,000
Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $24,500. During the accounting period, the department incurred $40,500 of transferred-in cost, $23,500 of materials cost, $60,500 of labor cost, and $32,500 of applied overhead cost. The department processed 6,050 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost of the finished goods inventory transferred out of the assembly department? Cost Allocation a. To finished goods a. To ending inventory b. To finished goods b. To ending inventory $ 39,000 $ 168,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory
balance of $24,500. During the accounting period, the department incurred $40,500 of transferred-in cost, $23,500 of materials
cost, $60,500 of labor cost, and $32,500 of applied overhead cost. The department processed 6,050 total equivalent units of
product during the accounting period.
Required
(Each requirement is independent of the other.)
a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost
transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account.
What was the assembly department's cost of ending work in process inventory?
b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished
goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost
of the finished goods inventory transferred out of the assembly department?
Cost Allocation
a. To finished goods
a. To ending inventory
b. To finished goods
b. To ending inventory
$
$
39,000
168,000
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