Costs assigned to Units transferred and units in ending inventory: The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned. The costs assigned to units transferred are calculated as under – C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s The costs assigned to ending inventory are calculated as under – C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s To assign: Costs to the assembly department’s output for – 1. Units transferred out to painting department 2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Question

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Answer 1

Question

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

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Sandy's Sauces, which produces stir-fry sauces, is developing direct material standards. Each bottle of sauce requires 0.6 kilograms of base. The allowance for waste is 0.7 kilograms per bottle, while the allowance for rejects is 0.8 kilograms per bottle. What is the standard quantity of base per bottle? A. 2.1 kilograms B. 0.6 kilograms C. 1.3 kilograms D. 1.4 kilograms

Answer 2

Question

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

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Answer 3

Question

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

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Answer 4

Question

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

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Answer 5

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

Answer 6

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

Answer 7

Chapter 20, Problem 16QS

To determine

Concept Introduction:

Costs assigned to Units transferred and units in ending inventory:

The costs are assigned to units transferred and units in ending inventory on the basis of equivalent units in materials and conversion and cost per units assigned.

The costs assigned to units transferred are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o u n i t s t r a n s f e r r e d = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

The costs assigned to ending inventory are calculated as under –

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \end{array}$

To assign:

Costs to the assembly department’s output for –

1. Units transferred out to painting department

2. Units in ending inventory (units that remain n process in the assembly department at month-end)

Answer 8

Expert Solution & Answer

Answer to Problem 16QS

Solution:

Costs assigned for –

1. Units transferred out to painting department = $ 16,590

2. Units in ending inventory = $ 3,663

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The costs assigned to units transferred out to painting department and to units in ending inventory are calculated as under –

1. Costs assigned to units transferred out to painting department –

Given,

• Equivalent units for units transferred for materials = 7,000 units

• Equivalent units for units transferred for conversion = 7,000 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o units transferred = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o units transferred = (7, 000 u n i t s X $ 1.02 p e r u n i t) + (7, 000 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o units transferred = $ 16, 590 \end{array} \end{array}$

The costs assigned to units transferred out to painting department are = $ 16,590

2. Costs assigned to units that remain in assembly department (Ending inventory units) –

Given,

• Equivalent units for ending inventory for materials = 2,400 units

• Equivalent units for ending inventory for conversion = 900 units

• Cost per equivalent unit for materials = $ 1.02 per unit

• Cost per equivalent unit for conversion = $ 1.35 per unit

•

$\begin{array}{l} C o s t s a s s i g n e d t o ending inventory = E q u i v a l e n t u n i t s o f m a t e r i a l s X C o s t p e r e q u i v a l e n t u n i t s \\ \begin{array}{l} + E q u i v a l e n t u n i t s o f c o n v e r s i o n X C o s t p e r e q u i v a l e n t u n i t s \\ C o s t s a s s i g n e d t o ending inventory = (2, 400 u n i t s X $ 1.02 p e r u n i t) + (900 u n i t s X $ 1.35 p e r u n i t) \\ C o s t s a s s i g n e d t o ending inventory = $ 3, 663 \end{array} \end{array}$

The costs assigned to units that remain in assembly department (Ending inventory units) are = $ 3,663.

Answer 12

Conclusion

Thus, the costs to the assembly department’s output for units transferred out to painting department and units in ending inventory (units that remain n process in the assembly department at month-end) have been assigned.

Answer 13

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - Prob. 5DQ Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

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Answer to Problem 16QS

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