The Sedona Company is dedicated to making products that meet the needs of customers in a sustainable manner. Sedona is best known for its KLN water bottle, which is a BPA-free, dishwasher-safe, bubbly glass bottle in a soft silicone sleeve. The production process consists of three basic operations. In the first operation, the glass is formed by remelting cullets (broken or refuse glass). In the second operation, the glass is assembled with the silicone gasket and sleeve. The resulting product is finished in the final operation with the addition of the polypropylene cap. Consulting studies have indicated that of the total conversion costs required to complete a finished unit, the forming operation requires 60%, the assembly 30%, and the finishing 10%.  Cullets purchased $67,500 Silicone purchased $24,000 Polypropylene used $ 6,000 Total conversion costs incurred $68,850 Ending inventory, cullets $ 4,500 Ending inventory, silicone $ 3,000 Number of bottles completed and transferred 12,000 Inventory in process at the end of the month: Units formed but not assembled 4,000 Units assembled but not finished 2,000 Q.What is the cost of goods assembled but not finished

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Sedona Company is dedicated to making products that meet the needs of customers in a sustainable manner. Sedona is best known for its KLN water bottle, which is a BPA-free, dishwasher-safe, bubbly glass bottle in a soft silicone sleeve. The production process consists of three basic operations. In the first operation, the glass is formed by remelting cullets (broken or refuse glass). In the second operation, the glass is assembled with the silicone gasket and sleeve. The resulting product is finished in the final operation with the addition of the polypropylene cap. Consulting studies have indicated that of the total conversion costs required to complete a finished unit, the forming operation requires 60%, the assembly 30%, and the finishing 10%. 

Cullets purchased $67,500

Silicone purchased $24,000

Polypropylene used $ 6,000

Total conversion costs incurred $68,850

Ending inventory, cullets $ 4,500

Ending inventory, silicone $ 3,000

Number of bottles completed and transferred 12,000

Inventory in process at the end of the month:

Units formed but not assembled 4,000

Units assembled but not finished 2,000

Q.What is the cost of goods assembled but not finished

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