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Required B What is the unit cost of each model transferred to finished goods in February? Required A Product DI-1400 Unit Cost

Required B What is the unit cost of each model transferred to finished goods in February? Required A Product DI-1400 Unit Cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Total Units started Units completed in Fabrication Units completed in Detailing Materials. Conversion costs: Fabrication Detailing Total conversion costs $ 5,605,200 $ 1,808, 100. 1,298,925 $ 3,107,025 Required A DI-1400 DI-1400 820 770 Complete this question by entering your answers in the tabs below. Unit Cost DI-3800 635 610 585 $ 557,600 $ 1,244,600 $ 1,974,000 Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Required B What is the unit cost of each model transferred to finished goods in February? Product DI-5000 470 445 420 DI-8000 295 245 220 $1,829,000
Transcribed Image Text:Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Total Units started Units completed in Fabrication Units completed in Detailing Materials. Conversion costs: Fabrication Detailing Total conversion costs $ 5,605,200 $ 1,808, 100. 1,298,925 $ 3,107,025 Required A DI-1400 DI-1400 820 770 Complete this question by entering your answers in the tabs below. Unit Cost DI-3800 635 610 585 $ 557,600 $ 1,244,600 $ 1,974,000 Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Required B What is the unit cost of each model transferred to finished goods in February? Product DI-5000 470 445 420 DI-8000 295 245 220 $1,829,000
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