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BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. Assembly 1,000 50% Casting Finishing 500 300 25% 50% 2,700 2,900 2,800 WIP, End 800 800 400 Stage of Completion 90% 40% 50% Cost Data: WIP, Beg

BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. Assembly 1,000 50% Casting Finishing 500 300 25% 50% 2,700 2,900 2,800 WIP, End 800 800 400 Stage of Completion 90% 40% 50% Cost Data: WIP, Beg

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. Casting Assembly Finishing 500 1,000 300 25% 50% 50% 2,700 2,900 2,800 WIP, End 800 800 400 Stage of Completion 90% 40% 50% Cost Data: WIP, Beg Cost from Preceding Dept P63,150 P42,840 Materials P10,925 40,258 Direct Labor 338 12,426 2,760 FOH 2,839 12,426 4,140 Factory costs: Materials 146, 575 116,480 Direct Labor 16,362 44,408 12,240 FOH 48,461 44,408 18,360 1. Using FIFO compute for the total cost of units transferred out from finishing. 2. Using average method compute for the cost of goods sold assuming there was no beginning or ending inventory of finished goods for the month.
Transcribed Image Text:BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity Data: WIP, Beg Stage in completion Transferred to next Dep't. Casting Assembly Finishing 500 1,000 300 25% 50% 50% 2,700 2,900 2,800 WIP, End 800 800 400 Stage of Completion 90% 40% 50% Cost Data: WIP, Beg Cost from Preceding Dept P63,150 P42,840 Materials P10,925 40,258 Direct Labor 338 12,426 2,760 FOH 2,839 12,426 4,140 Factory costs: Materials 146, 575 116,480 Direct Labor 16,362 44,408 12,240 FOH 48,461 44,408 18,360 1. Using FIFO compute for the total cost of units transferred out from finishing. 2. Using average method compute for the cost of goods sold assuming there was no beginning or ending inventory of finished goods for the month.
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