Homework Help is Here – Start Your Trial Now!
Business
Accounting
ND 75% FOR ENDING INVENTORY.

ND 75% FOR ENDING INVENTORY.

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

Please help me to solve this problem

Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added as discussed in the required section below. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of process costing. The following. information for June 2017 is available: CONVERSION COSTS ARE 50% FOR BEG INVENTORY AND 75% FOR ENDING INVENTORY. Units: bwip 60 transferred in during month 100 completed and transferred out 120 ending inventory (solve for this number) Costs: Prior period costs - direct materials $0. transferred in $60000 conversion costs $24000 costs added this period - direct materials $27,000 transferred in $117,000 conversion costs $62400
Transcribed Image Text:Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added as discussed in the required section below. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of process costing. The following. information for June 2017 is available: CONVERSION COSTS ARE 50% FOR BEG INVENTORY AND 75% FOR ENDING INVENTORY. Units: bwip 60 transferred in during month 100 completed and transferred out 120 ending inventory (solve for this number) Costs: Prior period costs - direct materials $0. transferred in $60000 conversion costs $24000 costs added this period - direct materials $27,000 transferred in $117,000 conversion costs $62400
Required: 1. Assuming that direct materials are added at the end of the process, prepare a production cost report using (1) fifo and (2) weighted average. 2. Assuming that direct materials are added at the beginning of the process, prepare a production cost report using (1) fifo and (2) weighted average.
Transcribed Image Text:Required: 1. Assuming that direct materials are added at the end of the process, prepare a production cost report using (1) fifo and (2) weighted average. 2. Assuming that direct materials are added at the beginning of the process, prepare a production cost report using (1) fifo and (2) weighted average.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
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
SEE MORE TEXTBOOKS