Spartan Computer Systems, Inc., manufactures printers. Materials are added at the beginning of theproduction process. In April, Spartans started 14,500 printers. Of these, 12,350 were completed andtransferred to the next department, 1,480 were spoiled (as anticipated) and 670 were unexpectedly spoiled.Spoilage is not detected until the process is complete. There was no beginning or ending work in processinventory. Direct materials of $320,000 were used during the month.The Materials Rate per Equivalent is [Select]How much of the materials costs will be transferred to the next department? [Select]How much of the materials costs will be written off as "Loss from Abnormal Spoilage"?[Select]

Step 1: To Calculate the materials rate per equivalent, equivalent units of production is to be…

Answered: Spartan Computer Systems, Inc.,…

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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"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it." Finishing Department costs: Work in process inventory, April 1, 500 units; materials 100% complete; conversion 88% complete $ 8,425 * Costs transferred in during the month from thepreceding department, 2,000 units 18,605 Materials cost added during the month 6,641 Conversion costs incurred during the month 14,950 Total departmental costs $ 48,621 Finishing Department costs assigned to: Units completed and transferred to finished goods,1,900 units at $25.590 per unit $ 48,621 Work in process inventory, April 30, 600 units;materials 0% complete; conversion 40% complete 0 Total departmental costs assigned $ 48,621 *Consists of cost transferred in, $4,270; materials cost, $1,985;…
"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it." Finishing Department costs: Work in process inventory, April 1, 650 units; materials 100% complete; conversion 88% complete $ 8,476 * Costs transferred in during the month from thepreceding department, 2,150 units 21,176 Materials cost added during the month 7,922 Conversion costs incurred during the month 17,320 Total departmental costs $ 54,894 Finishing Department costs assigned to: Units completed and transferred to finished goods,2,200 units at $24.950 per unit $ 54,894 Work in process inventory, April 30, 600 units;materials 0% complete; conversion 40% complete 0 Total departmental costs assigned $ 54,894 *Consists of cost transferred in, $4,276; materials cost, $2,000;…
At the start of June, the Polishing Department of Corona Counters, Inc. had 15,000 units in beginning inventory. During the month, it received 25,000 units from the Machining Department. It started and completed 17,000 units and transferred 32,000 units to the Packaging Department. It had 8,000 units in ending Work-in-Process Inventory. Direct materials are added at the beginning of the process. Units in beginning Work-in-Process Inventory were 50% complete in respect to conversion costs. Units in ending Work-in-Process Inventory were 40% complete with respect to conversion costs. Prepare the production cost report for the Polishing Department for the equivalent units of production for the month of June. Use the FIFO method.
A Chair Company manufactures a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 85,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 15,000 chairs in ending inventory. All direct materials are added at the beginning of the production cycle. How many chairs were in inventory at the beginning of the month? Using weighted-average costing, what were the equivalent units for materials for February? Using FIFO costing, what were the equivalent units for direct materials for February? Using weighted average costing, what were the equivalent units for conversion costs for February if the beginning inventory was 70% complete as to conversion costs, and the ending inventory was 40% complete as to conversion costs?
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"I think we goofed by hiring the new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report he prepared for last month for the Finishing Department. I can't understand it." Finishing Department costs: Work in process inventory, April 1, 1,200 units; materials 100% complete; conversion 88% complete Costs transferred in during the month from the preceding department, 2,700 units Materials cost added during the month Conversion costs incurred during the month $ 8,663* 30, 295 12,465 26,490 $ 77,913 Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 3,300 units at $23.61 per unit Work in process inventory, April 30, 600 units; materials 0% complete; conversion 50% complete 0 Total departmental costs assigned $ 77,913 *Consists of cost transferred in, $4,298; materials cost, $2,055; and conversion cost, $2,310. $ 77,913 "He's struggling to learn our system," replied Frank Harrop,…
On March 1, Upton Company's Packaging Department had Work in Process inventory of 8,820 units, which had been transferred in from the finishing department. These units had accumulated costs of $315,000 in previous departments and $16,000 for conversion costs in the Packaging Department. During March, 30,000 units were transferred into the department. These units had accumulated costs of $770,000 in the previous departments. The Packaging Department incurred $54,000 in conversion costs during the month. On March 31, 700 units remained in ending inventory. These units were 80% complete with respect to conversion costs. Required: Compute the cost per equivalent unit for transferred-in costs and for conversion costs for the Packaging Department using the weighted average method. im trying to figure out the transferred in costs and conversion costs
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs. Required: a. Complete the production cost report using the FIFO method. Note: Round "Cost per equivalent unit" to 2 decimal places. Flow of units: Units to be accounted for. Beginning WIP inventory Units started this period Total units to account for Units accounted for: Completed…
Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Beginning work-in-process Costs added in October Total costs Direct Materials $ 8,200 $ 8,200 Required: 1. Calculate each of the following amounts using weighted-average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion.…
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 245,055 9,676 $ 906,625 103,140 The ending inventory has 14,800 units, which are 90 percent complete with respect to Refining Department costs. Required: Complete the production cost report using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to…

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