Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs. Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement Total $ 455,000 $ $ $ $ $ 114,000 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000
Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs. Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement Total $ 455,000 $ $ $ $ $ 114,000 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
Topic Video
Question
100%
Transcribed Image Text:Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in
four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is
assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter
and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging
and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When
packaged, it is transferred to finished goods.
Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each
department.
Materials
Conversion costs:
Assembly
Polishing
Special Finishing
Packaging
Total conversion costs
Gag-Gift
Commuter
> Answer is complete but not entirely correct.
Cost Per Unit
Sport
Retirement
$
$
$
Total
$ 455,000
Required:
b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to
2 decimal places.)
$
$ 114,000.
55,600
32,400
76,000
$ 278,000
5.40 X
7.24 X
7.25 X
14.40 x
Gag-Gift
(6,600 units)
$ 33,000
Commuter
(11,600 units)
$116,000
Sport
(16,200 units)
$ 243,000
Retirement
(3,600 units)
$ 63,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education