VI. Interpreting a Production Report Dolce company manufactures a product that goes through several departments. hastily prepared production report for department A for April is given below: Quantity Schedule Units to be accounted for: WIP, April 1 (90% materials, 900/ odded last month) 30,000

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Chapter1: Financial Statements And Business Decisions
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VI. Interpreting a Production Report Dolce company manufactures a product
that goes through several departments. hastily prepared production report for
department A for April is given below:
Quantity Schedule
Units to be accounted for:
WIP, April 1 (90% materials,
80% conversion cost added last month)
Started into production
Total units
Units accounted for as follow:
Transferred to department B
WIP April 30(75% materials, 60%
conversion cost added this month)
Total cost
Total Cost
Cost to be accounted for:
WIP,April 1
Cost added during the month
Total Cost
Cost Reconciliation
Cost accounted for as follow:
Transferred to department B
WIP April 30
Total cost
30,000
200,000
230,000
190,000
40.000
230,000
$98,000
827.000
925,000
$805,600
119.400
925,000
Dolce Company has just been acquired by another organization and
the management wants some additional information about Dolce's
operations.
Required
1)Is Dolce co. using the weighted average method or the FIFO method
to account for units and costs? How can you tell?
2) What were the equivalent units for the month?
3) What were the unit costs for the month? The beginning inventory
consisted of the following costs: materials, $67,800, and conversion cost
$30,200. The costs added during the month consisted of: materials, $579,000
and conversion cost. $248,000.
4) How many of the units transferred to department B were started
and completed during the month
Transcribed Image Text:VI. Interpreting a Production Report Dolce company manufactures a product that goes through several departments. hastily prepared production report for department A for April is given below: Quantity Schedule Units to be accounted for: WIP, April 1 (90% materials, 80% conversion cost added last month) Started into production Total units Units accounted for as follow: Transferred to department B WIP April 30(75% materials, 60% conversion cost added this month) Total cost Total Cost Cost to be accounted for: WIP,April 1 Cost added during the month Total Cost Cost Reconciliation Cost accounted for as follow: Transferred to department B WIP April 30 Total cost 30,000 200,000 230,000 190,000 40.000 230,000 $98,000 827.000 925,000 $805,600 119.400 925,000 Dolce Company has just been acquired by another organization and the management wants some additional information about Dolce's operations. Required 1)Is Dolce co. using the weighted average method or the FIFO method to account for units and costs? How can you tell? 2) What were the equivalent units for the month? 3) What were the unit costs for the month? The beginning inventory consisted of the following costs: materials, $67,800, and conversion cost $30,200. The costs added during the month consisted of: materials, $579,000 and conversion cost. $248,000. 4) How many of the units transferred to department B were started and completed during the month
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