Kingbird Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped up production of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Kingbird reported the following activity and cost information for its only production process dedicated to these coffee brewers. Units Plastic Mesh Conversion Costs Units in beginning WIP Inventory 700 Beginning WIP Inventory degree of completion 100% 100% 70% Costs in beginning WIP Inventory $3,290 $285 $2,200 New units started 13,700 Costs added to WIP Inventory this period $64,390 $7,680 $96,944 Units completed 13,500 Units in ending WIP Inventory 900 Ending WIP Inventory degree of completion 100% 0% 30% The conversion costs are added evenly throughout this manufacturing process.
Kingbird Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped up production of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Kingbird reported the following activity and cost information for its only production process dedicated to these coffee brewers. Units Plastic Mesh Conversion Costs Units in beginning WIP Inventory 700 Beginning WIP Inventory degree of completion 100% 100% 70% Costs in beginning WIP Inventory $3,290 $285 $2,200 New units started 13,700 Costs added to WIP Inventory this period $64,390 $7,680 $96,944 Units completed 13,500 Units in ending WIP Inventory 900 Ending WIP Inventory degree of completion 100% 0% 30% The conversion costs are added evenly throughout this manufacturing process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kingbird Corp. manufactures kitchen appliances and gadgets, like coffee makers and can openers. Recently, the company ramped up
production of its iced coffee brewer, anticipating increasing demand in the market. For the month of April, Kingbird reported the
following activity and cost information for its only production process dedicated to these coffee brewers.
Units
Plastic
Mesh
Conversion Costs
Units in beginning WIP Inventory
700
Beginning WIP Inventory degree of completion
100%
100%
70%
Costs in beginning WIP Inventory
$3,290
$285
$2,200
New units started
13,700
Costs added to WIP Inventory this period
$64,390
$7,680
$96,944
Units completed
13,500
Units in ending WIP Inventory
900
Ending WIP Inventory degree of completion
100%
0%
30%
The conversion costs are added evenly throughout this manufacturing process.
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