McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete Conversion costs are added evenly during the assembly department's process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017 E (Click the icon to view the data.) Read the requirements Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the physical units and equivalent units. Equivalent Units Data table Physical Direct Conversion Flow of Production Units Materials Costs Physical Units Direct Conversion Work in process, beginning (Frames) Materials Costs Started during current period 60 $1,530 $156 Work in process, April 1 Started during April 2017 Completed during April 2017 Work in process, April 300 Total costs added during April 2017 510 To account for 450 120 Completed and transferred out during current period $17,850 $11,544 Work in process, ending aDegree of completion: direct materials, 100%, conversion costs, bDegree of completion direct materials, 100%, conversion costs, 15%. Accounted for Equivalent units of work done to date Print Done
McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete Conversion costs are added evenly during the assembly department's process. McKnight uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2017 E (Click the icon to view the data.) Read the requirements Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the physical units and equivalent units. Equivalent Units Data table Physical Direct Conversion Flow of Production Units Materials Costs Physical Units Direct Conversion Work in process, beginning (Frames) Materials Costs Started during current period 60 $1,530 $156 Work in process, April 1 Started during April 2017 Completed during April 2017 Work in process, April 300 Total costs added during April 2017 510 To account for 450 120 Completed and transferred out during current period $17,850 $11,544 Work in process, ending aDegree of completion: direct materials, 100%, conversion costs, bDegree of completion direct materials, 100%, conversion costs, 15%. Accounted for Equivalent units of work done to date Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This
problem focuses on the assembly department. The process-costing system at McKnight has a single direct-cost category (direct materials) and a single indirect-cost category (conversion
costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department's process. McKnight uses the
weighted-average method of process costing. Consider the following data for the assembly department in April 2017
E (Click the icon to view the data.)
Read the requirements.
Requirement 1. Summarize total assembly department costs for April 2017, and assign total costs to units completed (and transferred out) and to units in ending work in process.
Begin by calculating the physical units and equivalent units.
Equivalent Units
Data table
Physical
Direct
Conversion
Flow of Production
Units
Materials
Costs
Physical Units
Direct
Conversion
Work in process, beginning
(Frames)
Materials
Costs
Started during current period
60
$1,530
$156
Work in process, April 1a
Started during April 2017
Completed during April 2017
Work in process, April 300
Total costs added during April 2017
aDegree of completion: direct materials, 100%, conversion costs, 40%.
bDegree of completion: direct materials, 100%, conversion costs, 15%.
510
450
To account for
120
Completed and transferred out during current period
$17,850
$11,544
Work in process, ending
Accounted for
Equivalent units of work done to date
Print
Done
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