Problem no. 3 Keepin makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into 6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather and then coated with a preservative. The following production and cost data are available for March 2022 (units are 6-foot fence sections): Units Beginning WIP Inventory (March 1) Complete as to material Complete as to conversion Units started in March Units completed in March Ending WIP Inventory (March 31) Complete as to material Complete as to conversion Costs Beginning WIP Inventory Transferred in Material Conversion Current Transferred in Material Conversion Required: 1. 2. Cutting Dept. 1,300 80% 75% 4,800 ? 1,100 40% 20% n/a $ 8,345 7,720 n/a 35,200 21,225 Coating Dept. 900 0% 60% ? 4,500 ? 0% 40% $11,840 0 1,674 ? 4,950 11,300 Prepare, in good form, a weighted average cost of production report for the Cutting and Coating Department for March 2022. Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating Department for March 2022.
Problem no. 3 Keepin makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into 6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather and then coated with a preservative. The following production and cost data are available for March 2022 (units are 6-foot fence sections): Units Beginning WIP Inventory (March 1) Complete as to material Complete as to conversion Units started in March Units completed in March Ending WIP Inventory (March 31) Complete as to material Complete as to conversion Costs Beginning WIP Inventory Transferred in Material Conversion Current Transferred in Material Conversion Required: 1. 2. Cutting Dept. 1,300 80% 75% 4,800 ? 1,100 40% 20% n/a $ 8,345 7,720 n/a 35,200 21,225 Coating Dept. 900 0% 60% ? 4,500 ? 0% 40% $11,840 0 1,674 ? 4,950 11,300 Prepare, in good form, a weighted average cost of production report for the Cutting and Coating Department for March 2022. Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating Department for March 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cost Accounting
Give the answer to the problem.
What is the answer in numbers 1 and 2? Show solution/process.
Transcribed Image Text:Problem no. 3
Keepin makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into
6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather
and then coated with a preservative. The following production and cost data are available for March 2022 (units are
6-foot fence sections):
Units
Beginning WIP Inventory (March 1)
Complete as to material
Complete as to conversion
Units started in March
Units completed in March
Ending WIP Inventory (March 31)
Complete as to material
Complete as to conversion
Costs
Beginning WIP Inventory
Transferred in
Material
Conversion
Current
Transferred in
Material
Conversion
Required:
1.
2.
Cutting Dept.
1,300
80%
75%
4,800
?
1,100
40%
20%
n/a
$ 8,345
7,720
n/a
35,200
21,225
Coating Dept.
900
0%
60%
?
4,500
?
0%
40%
$11,840
0
1,674
4,950
11,300
Prepare, in good form, a weighted average cost of production report for the Cutting and Coating
Department for March 2022.
Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating
Department for March 2022.
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