Compute the total cost of the units transferred to finished goods Inventory. JKL FABRICATORS Inc., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours 1,000 receiving orders Activity Inspection Rate P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Maintenance Receiving At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in process, 25% to complete. Units are inspected when they are 90% converted afterwards paints are added. The company is using first-in-first out method. :

Compute the total cost of the units transferred to finished goods Inventory. JKL FABRICATORS Inc., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours 1,000 receiving orders Activity Inspection Rate P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Maintenance Receiving At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending work in process, 25% to complete. Units are inspected when they are 90% converted afterwards paints are added. The company is using first-in-first out method. :

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
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In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is 3,000,000. The conversion cost for the period in the Rolling Department is 462,600 (275,000 factory overhead applied and 187,600 direct labor). The total cost transferred to Finished Goods for the period was 3,392,400. The Rolling Department had a beginning inventory of 163,800. a. Journalize for the Rolling Department (1) the cost of transferred-in materials, (2) the conversion costs, and (3) the costs transferred out to Finished Goods. b. Determine the balance of Work in ProcessRolling at the end of the period.
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