Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production Conversion costs are allocated evenly throughout production Data are shown in the table (Click the icon to view the table) What is the total amount of the work-in-process ending inventory for Department A at the end of February? Round to the nearest dollar OA $385,970 OB. $315.571 OC. $315,571 OD. $276,157 OE $619,900 Table Data for Department A for February 2018 are Work in process, beginning inventory, 40% converted Units started during February Work in process, ending inventory: 30% complete as to conversion costs 100% complete as to materials Costs for the Department A for February 2018 are Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during February Conversion costs added during February 200 units 600 units 100 units $200,000 $200,000 $2.000.000 $2.500.000 X
Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production Conversion costs are allocated evenly throughout production Data are shown in the table (Click the icon to view the table) What is the total amount of the work-in-process ending inventory for Department A at the end of February? Round to the nearest dollar OA $385,970 OB. $315.571 OC. $315,571 OD. $276,157 OE $619,900 Table Data for Department A for February 2018 are Work in process, beginning inventory, 40% converted Units started during February Work in process, ending inventory: 30% complete as to conversion costs 100% complete as to materials Costs for the Department A for February 2018 are Work in process, beginning inventory Direct materials Conversion costs Direct materials costs added during February Conversion costs added during February 200 units 600 units 100 units $200,000 $200,000 $2.000.000 $2.500.000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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.
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Transcribed Image Text:Dustin Plastics, Inc., manufactures plastic moldings for car seats. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through Department A
and Department B. Direct materials are added at the beginning of production Conversion costs are allocated evenly throughout production. Data are shown in the table.
(Click the icon to view the table.)
What is the total amount of the work-in-process ending inventory for Department A at the end of February? Round to the nearest dollar.
OA. $385,970
OB. $315.571
OC. $315,571
OD. $276,157
OE. $619,900
Table
Data for Department A for February 2018 are
Work in process, beginning inventory, 40% converted
Units started during February
Work in process, ending inventory:
30% complete as to conversion costs
100% complete as to materials
Costs for the Department A for February 2018 are:
Work in process, beginning inventory
Direct materials
Conversion costs
Direct materials costs added during February
Conversion costs added during February
200 units
600 units
100 units
$200,000
$200,000
$2,000,000
$2,500,000
- X
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Step 1: Meaning and purpose of calculating equivalent unit :
VIEWStep 2: Calculation of units completed and transferred out during February :
VIEWStep 3: Calculation of equivalent units (Weighted average method) :
VIEWStep 4: Calculation of cost per equivalent unit :
VIEWStep 5: Calculation of total amount of ending WIP for Deptt. A at the end of February :
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