Homework Help is Here – Start Your Trial Now!
Business
Accounting
Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods.

Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Topic Video
Question
Please do not give image format
Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Units started Units completed in Fabrication Units completed in Detailing Materials. Conversion costs: Fabrication Detailing Total conversion costs Total $3,830,450 $1,521,100. 989,925 $2,511,025 DI-1400 720 670 $ 417,600 DI-3800 585 560 535 DI-5000 370 345 320 $1,117,350. $1,184,000 Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? DI-8000 195 145 120 $1,111,500
Transcribed Image Text:Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Units started Units completed in Fabrication Units completed in Detailing Materials. Conversion costs: Fabrication Detailing Total conversion costs Total $3,830,450 $1,521,100. 989,925 $2,511,025 DI-1400 720 670 $ 417,600 DI-3800 585 560 535 DI-5000 370 345 320 $1,117,350. $1,184,000 Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? DI-8000 195 145 120 $1,111,500
a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. Required A What is the unit cost of each model transferred to finished goods in February? Unit Cost Product DI-1400 DI-3800 DI-5000 DI-8000 Required B Show Transcribed Text Required A <Required A Fabrication Detailing Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Required B 3 Complete this question by entering your answers in the tabs below. Required B > c < Required A What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Work-in-Process Inventory Required >
Transcribed Image Text:a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. Required A What is the unit cost of each model transferred to finished goods in February? Unit Cost Product DI-1400 DI-3800 DI-5000 DI-8000 Required B Show Transcribed Text Required A <Required A Fabrication Detailing Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Required B 3 Complete this question by entering your answers in the tabs below. Required B > c < Required A What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Work-in-Process Inventory Required >
Expert Solution
steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS