Hybrid costing Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different types of necklaces did not cost the same amount of money to make, even though they took the same amount of time and effort to assemble. Koontz developed the following standard costs for each type of necklace: Glass Metal Natural $24.00 $15.00 $7.00 15.00 15.00 15.00 8.00 8.00 8.00 $47.00 $38.00 $30.00 Beads Direct labor (1.5 hours) Overhead (based on 1.5 hours) Total Koontz began the year with no beginning WIP Inventory after she experienced an extreme holiday rush. During January, 312 necklaces were started: 168 were glass, 60 were metal, and 84 were natural. At the end of January, 60 necklaces were not yet complete: 12 glass, 31 metal, and 17 natural. The stage of completion for each cost component for the 60 unfinished necklaces was as follows: Material 100% complete Conversion 60% complete a. Calculate the cost of necklaces completed during January. $ 0 b. Calculate the cost of necklaces in ending WIP Inventory. $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please do not give solution in image format thanku 

Hybrid costing
Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different
types of necklaces did not cost the same amount of money to make, even though they took the same amount of time and effort to assemble.
Koontz developed the following standard costs for each type of necklace:
Glass Metal Natural
$24.00 $15.00 $7.00
15.00 15.00 15.00
8.00 8.00 8.00
$47.00 $38.00 $30.00
Beads
Direct labor (1.5 hours)
Overhead (based on 1.5 hours)
Total
Koontz began the year with no beginning WIP Inventory after she experienced an extreme holiday rush. During January, 312 necklaces were started:
168 were glass, 60 were metal, and 84 were natural. At the end of January, 60 necklaces were not yet complete: 12 glass, 31 metal, and 17 natural.
The stage of completion for each cost component for the 60 unfinished necklaces was as follows:
Material 100% complete
Conversion 60% complete
a. Calculate the cost of necklaces completed during January. $ 0
b. Calculate the cost of necklaces in ending WIP Inventory. $ 0
Transcribed Image Text:Hybrid costing Pat Koontz makes necklaces from glass beads, metal beads, and natural beads. After reading about hybrid costing, she realized that the different types of necklaces did not cost the same amount of money to make, even though they took the same amount of time and effort to assemble. Koontz developed the following standard costs for each type of necklace: Glass Metal Natural $24.00 $15.00 $7.00 15.00 15.00 15.00 8.00 8.00 8.00 $47.00 $38.00 $30.00 Beads Direct labor (1.5 hours) Overhead (based on 1.5 hours) Total Koontz began the year with no beginning WIP Inventory after she experienced an extreme holiday rush. During January, 312 necklaces were started: 168 were glass, 60 were metal, and 84 were natural. At the end of January, 60 necklaces were not yet complete: 12 glass, 31 metal, and 17 natural. The stage of completion for each cost component for the 60 unfinished necklaces was as follows: Material 100% complete Conversion 60% complete a. Calculate the cost of necklaces completed during January. $ 0 b. Calculate the cost of necklaces in ending WIP Inventory. $ 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Product life cycle
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