Concept explainers
Concept Introduction:
Ending Work in Process of the departments:
The ending work in process of the department can be defined as the units left in the department after the units are transferred to the next department from the total available units. Total available units are the sum of units in the beginning and the units started in the process.
The ending work in process of the department can be calculated as under −
Ending work in process = Beginning Direct Materials + Beginning Conversion cost + Cost added for Material + Cost added for conversion − Transferred to the next department
Ending work in process inventory accounts for −
- Cutting Department
- Binding Department

Answer to Problem 20QS
Solution:
Ending work in process inventory accounts for −
- Cutting Department = $ 7,100
- Binding Department = $ 17,042
Explanation of Solution
The ending work in process inventory accounts for cutting department and binding department are calculated as under −
1. For cutting Department −
Given,
- Beginning Direct Materials = $ 845
- Beginning Conversion cost = $ 2,600
- Cost added for Material = $ 8,240
- Cost added for conversion = $ 11,100
- Transferred to the binding department = $ 15,685
Ending work in process inventory accounts for cutting Department is −
2. For Binding Department −
Given,
- Beginning WIP from cutting department = $ 1,200
- Beginning Direct Materials = $ 1,926
- Beginning Conversion cost = $ 3,300
- Cost added for Material = $ 6,356
- Cost added for conversion = $ 18,575
- Transferred from cutting department = $ 15,685
- Transferred to the finished goods = $ 30,000
Ending work in process inventory accounts for cutting Department is −
Thus, the ending work in process for cutting and binding departments have been determined.
Want to see more full solutions like this?
Chapter 20 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
- Calculate the company's P/E ratioarrow_forwardLegal Corporation purchased a limited-life intangible asset for $600,000 on July 1, 2017. It has a useful life of 12 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2019?arrow_forwardTotal assets? General accountingarrow_forward
- Answer the following, based on the information provided: Calculate the overapplied or underapplied overhead for the year ended December 31, 2024. Be sure to indicate whether the overhead is overapplied or underapplied. If the overapplied or underapplied is material, what is the appropriate accounting treatment for this overapplied or underapplied overhead? Calculate the dollar balance in the work-in-process inventory account as of December 31, 2024. Calculate the dollar balance in the finished goods inventory account as of December 31, 2024, for the estate sprinklers, using LIFO basis. What is the cost of goods sold for the year ended December 31, 2024, using LIFO basis. JOB-ORDER COSTING Garden-R-US Inc. manufactures lawn equipment. The business uses a job-order system because the products are manufactured in batches rather than a continuous basis. The balances in selected general-ledger accounts for the eleven-month period ended November 30, 2024 are presented…arrow_forwardCan you help me with accounting questionsarrow_forwardcorrect answer please financial accountingarrow_forward
- Assets turnoverarrow_forwardCarlisle Manufacturing, which uses a calendar year, purchased a machine for $60,000 on January 5, 2015. It estimates the machine will have a useful life of 10 years and a $6,000 residual value. The machine is expected to produce 250,000 units during its useful life. The actual number of units produced were 22,000 during 2015, 31,000 during 2016, 24,000 during 2017, and 30,000 during 2018. Using the straight-line method, what is the book value at December 31, 2017? Answerarrow_forwardWhat is the book value at December 31?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





