Solution-Compute the number of component kits transferred

Compute the number of component kits transferred

Reference no: EM132516627

Question - Executive Designs began making high quality office furniture in January. Executive desks are produced in 2 departments - Cutting and Finishing. Component kits are produces in the Cutting Dept and then transferred to the Finishing Department. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials cost in the cutting department was $600,000 and conversion costs were $590,000. Ending inventory on January 31 consisted of 4000 partially processed component kits. These units were 100% complete with respect to direct materials but only 20% complete with respect to conversion.

Required -

a. Compute the number of component kits transferred from the cutting dept to the finishing dept.

b. Compute the equivalent units of input resources for the cutting department in January.

c. Compute the cost per equivalent unit of input resource for the cutting department in January.

d. Prepare the summary journal entry entry required to transfer finished component kits from Cutting to Finishing.

e. Compute the total cost assigned tot he cutting department ending inventory on January 31.

Reference no: EM132516627

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Compute the number of component kits transferred

Reference no: EM132516627

Reference no: EM132516627

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