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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F739654ea-7ce4-4097-87e2-32b7d528493b%2F459821c8-775b-496c-ba8b-eb32b6fa8e14%2Fsfpyff7_processed.jpeg&w=3840&q=75)
![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
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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 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F739654ea-7ce4-4097-87e2-32b7d528493b%2F459821c8-775b-496c-ba8b-eb32b6fa8e14%2Fe7huckp_processed.jpeg&w=3840&q=75)
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