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Complete the production cost report for the month of November

Complete the production cost report for the month of November

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Golf World, Incorporated (GWI) sells products and services for the sport of golf. One of its key business units specializes in the repair and reconditioning of golf carts. GWI enters into contracts with a number of golf clubs throughout the U.S. in which the clubs send their carts to GWI for a complete reconditioning: motor, frame repair where necessary, and replacement of seat covers and canvas tops. The clubs usually will cycle 10–15% of their carts through this process each year. Because GWI's business has been growing steadily, it is very important to complete the reconditioning of the carts within a budgeted time and cost. The firm uses weighted-average process costing to keep track of the costs incurred in the reconditioning process. GWI's golf cart repair and reconditioning unit has the following information for the month of November, in which 1,200 carts were started for reconditioning: Beginning WIP: 150 units, 50% complete for materials ($16,600) and 30% complete for conversion ($20,150) Current costs: Direct Materials: $200,000 Conversion: $385,000 (conversion costs for GWI usually average about $250 to $320 per unit, based on an average of 1,000 – 1,300 units completed each month) Ending WIP: 300 units, 30% complete for direct materials and 20% complete for conversion Required 1. Complete the production cost report for the month of November.
Transcribed Image Text:Golf World, Incorporated (GWI) sells products and services for the sport of golf. One of its key business units specializes in the repair and reconditioning of golf carts. GWI enters into contracts with a number of golf clubs throughout the U.S. in which the clubs send their carts to GWI for a complete reconditioning: motor, frame repair where necessary, and replacement of seat covers and canvas tops. The clubs usually will cycle 10–15% of their carts through this process each year. Because GWI's business has been growing steadily, it is very important to complete the reconditioning of the carts within a budgeted time and cost. The firm uses weighted-average process costing to keep track of the costs incurred in the reconditioning process. GWI's golf cart repair and reconditioning unit has the following information for the month of November, in which 1,200 carts were started for reconditioning: Beginning WIP: 150 units, 50% complete for materials ($16,600) and 30% complete for conversion ($20,150) Current costs: Direct Materials: $200,000 Conversion: $385,000 (conversion costs for GWI usually average about $250 to $320 per unit, based on an average of 1,000 – 1,300 units completed each month) Ending WIP: 300 units, 30% complete for direct materials and 20% complete for conversion Required 1. Complete the production cost report for the month of November.
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