Morgan Industries, Inc., mass-produces street lights. Materials used in constructing the body of the lights are added at the start of the process, while the materials used in wiring the lights are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Morgan uses process costing and had the following unit production information available for the months of March and April: Number of lights in beginning work in process Lights transferred to finished goods Number of lights in ending work in process March April 600 1,600 4,200 4,000 1,600 700 In March, the lights in the beginning work in process were approximately 60 percent complete, while those in the ending work in process were only 20 percent complete. In April, the units remaining in the ending work in process were 70 percent complete. All lights in the ending work in process are finished during the next month. a. For the month of March, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of April, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead.
Morgan Industries, Inc., mass-produces street lights. Materials used in constructing the body of the lights are added at the start of the process, while the materials used in wiring the lights are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Morgan uses process costing and had the following unit production information available for the months of March and April: Number of lights in beginning work in process Lights transferred to finished goods Number of lights in ending work in process March April 600 1,600 4,200 4,000 1,600 700 In March, the lights in the beginning work in process were approximately 60 percent complete, while those in the ending work in process were only 20 percent complete. In April, the units remaining in the ending work in process were 70 percent complete. All lights in the ending work in process are finished during the next month. a. For the month of March, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of April, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
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Transcribed Image Text:Morgan Industries, Inc., mass-produces street lights. Materials used in
constructing the body of the lights are added at the start of the process,
while the materials used in wiring the lights are added at the halfway
point. All labor and overhead are added evenly throughout the
manufacturing process. Morgan uses process costing and had the
following unit production information available for the months of March
and April:
Number of lights in beginning work in process
Lights transferred to finished goods
Number of lights in ending work in process
March
April
600 1,600
4,200
4,000
1,600 700
In March, the lights in the beginning work in process were
approximately 60 percent complete, while those in the ending work in
process were only 20 percent complete. In April, the units remaining in
the ending work in process were 70 percent complete. All lights in the
ending work in process are finished during the next month.
a. For the month of March, calculate the equivalent units of production
for the three major cost categories-body materials, wiring materials, and
labor and overhead.
b. For the month of April, calculate the equivalent units of production for
the three major cost categories-body materials, wiring materials, and
labor and overhead.
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