Reference no: EM133146261
Question - WEIGHTED-AVERAGE METHOD - Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Larsen Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Larsen Company uses the weighted- average method of process costing.
Data for the assembly department for October 2021 are as follows:
|
|
Physical Units (Car Seats)
|
Direct Materials
|
Conversion Costs
|
|
Work-in-process, October 1 *a
|
5,000
|
$1,250,000
|
$402,750
|
|
Started during October
|
20,000
|
|
|
|
Completed during October
|
22,500
|
|
|
|
Work-in-process, October 31 *b
|
2,500
|
|
|
|
Total costs added during October
|
|
$4,500,000
|
$2,337,500
|
*a Degree of completion: direct materials,?%; conversion costs, 60%.
*b Degree of completion: direct materials,?%; conversion costs, 70%.
Required -
1. For each cost category, show the number of physical units. Compute equivalent units for materials and for conversion in the assembly department.
2. For each cost category, summarize total assembly department costs and calculate the cost per equivalent unit.
3. Assign costs to units completed and transferred out and to units in ending work in process.
4. Prepare a set of summarized journal entries for all October 2021 transactions affecting Work in Process-Assembly.
|
By how much will the production cost increase
: Assume that production will increase to 32,000 jars of salsa during June. By how much will the production cost increase compared to the May budget
|
|
Business strategy to drive organizational strategy
: Why is it important for business strategy to drive organizational strategy and IS strategy? What might happen if the business strategy was not the driver?
|
|
Innovative-rapidly changing project management environment
: Innovative and rapidly changing project management environment is characterized by factors including faster delivery, flexibility,
|
|
What option would you choose and why
: The winner will receive $120,000.00 on January 1, 2022. Assuming you are the winner and that you have a RRR of 6%, what Option would you choose and why
|
|
Compute equivalent units for materials
: For each cost category, show the number of physical units. Compute equivalent units for materials and for conversion in the assembly department
|
|
How large should this lump-sum deposit be
: If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be
|
|
MBA5004 Managing Decision Making Process Assignment
: MBA5004 Managing Decision Making Process Assignment Help and Solution, Victorian Institute of Technology - Assessment Writing Service
|
|
What are the department equivalent units of production
: What are the department's equivalent units of production with respect to materials, assuming beginning inventory is 60% complete as to materials
|
|
How much is the correct amount of cash and cash equivalents
: Two certificates of deposits, each totaling P500,000, having maturity of 120 days. How much is the correct amount of cash and cash equivalents
|