Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, mokding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process:There was no opening WIP stock5,000 kilos of material at s43.08 per kilo entered theprocessDirect materials addedDirect wages incurredProduction overheadNormal loss is 4% of inputSg2,00065-70075-100A quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company's policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of cost listedInput materialDirect material addedConversion costs100%75%50%Required:i)Compute the number of equivalent units of work performed by the MoldingDepartment during the period and the cost per equivalent unit for direct materials andconversion costs.Assign total cost to:a. Units completed and transferred out to the Drying Departmentb. Units rejected as abnormal spoilagec. Units in the Molding department work in process inventory.ii)Prepare the joumal entries to record the assignment of direct materials, direct wagesand the allocation of manufacturing overhead to the Molding Department Account, aswell as, the cost of the units completed and transferred out to the Drying Department.iii)

Name: Tools & More uses three departments to produce plastic handles for sc
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, mokding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shank