3. CAPTURED Inc produces small plastic toys. As the raw material is heated, shrinkagematerial is entered at the beginning of the process. March 2013 data follows: Begoccurs. Management believes that shrinkage of less than 8% is normal. All directmaterial is entered at the heginning of the process. March 2013 data follows: BegInvty (30%CC) – 18,000 lbs: Started this month -Ibs; Ending Inventory (20% CC) -10,800 lbs; Shrinkage63,00060,000 lbs; Transferred?; Beginning inventorycost(DM-P7,000; CC –P5,400); Current Period Cost - (DM-P19,530; CC-P17,928).Compute the Cost transferred Out and Cost of Ending Inventory

CAPTURED Inc. produces small plastic toys and follows process costing method. A Less than 8%…

Answered: Compute the Cost transferred Out and…

Business

Accounting

Compute the Cost transferred Out and Cost of Ending Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3. CAPTURED Inc produces small plastic toys. As the raw material is heated, shrinkage
material is entered at the beginning of the process. March 2013 data follows: Beg
occurs. Management believes that shrinkage of less than 8% is normal. All direct
material is entered at the heginning of the process. March 2013 data follows: Beg
Invty (30%CC) – 18,000 lbs: Started this month -
Ibs; Ending Inventory (20% CC) -10,800 lbs; Shrinkage
63,000
60,000 lbs; Transferred
?; Beginning inventory
cost
(DM-P7,000; CC –
P5,400); Current Period Cost - (DM-P19,530; CC-P17,928).
Compute the Cost transferred Out and Cost of Ending Inventory

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