Compute the total cost of units transferred

Assignment Help Financial Accounting

Reference no: EM13175160

1. Compute the total cost of units transferred out using the weighted-average method.
2. Compute the total cost of units in ending work-in-process inventory using the weighted-average method.
3. Compute the total cost of units transferred out using the FIFO method.
4. Compute the total cost of units in ending work-in-process inventory using the weighted-FIFO method.
5. Assign testing department costs to units completed and units in ending work-in-process inventory using the data from problem 33.

Weighted average method.

Larsen Company manufactures car seat 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 Dept. for October 2009 are:

	Physical Units (Car Seats)	Direct Materials	Conversion Costs
Work in process October 1(a)	500	$1,250,000	$402,750
Started during Octover 2009	20000
Completed during October 2009	22500
Work in process October 31(b)	2500
Total costs added during October 2009		$4,500,000	$2,337,500
a)degree of completion:direct materials: ?%; conversion costs 60%
b)degree od completion: direct materials ?%; conversion costs 70%

FIFO Method

Do problem 30 using the FIFO method of process costing. Explain the difference between the cost per equivalent unit in the Assembly Department under the weighted average method and the FFIFO method.

Transferred in costs, weighted average method. Larsen Company as you know is a manufacturer of car seats. Each car seat passes through the Assembly department and Testing department. This problem focuses on the Testing department. Direct materials are added when the Testing department process is 90% complete. Conversion costs are added evenly during the Testing departments process. As work in Assembly is completed, each unit is immediately transferred to Testing. As each unit is completed in Testing it is immediately transferred to finished goods. Larsen Company uses the weighted average method of process costing. Data for the Testing Department for Oct 2009 are:

	Physical Units (car Seats)	Transferred in Costs	Direct Materials	Conversion Costs
Work in process, October 1(a)	7500	$2,932,500	$0	$835,460
Transferred in during Ovtober 2009	?
Completed diring October 2009	26300
Work in process, October 31(b)	3700
Total costs added during Octover 2009		$7,717,500	$9,704,700	$3,955,900

Reference no: EM13175160

Questions Cloud

What are the basic financial statements : How will it help them manage the enterprise? What are the limitations of the information that you provide to the management team? How can the management team ensure that they obtain a complete picture of the enterprise?

What percentage of the impure sample was barium hydroxide : Suppose that 1.331 g of impure barium hydroxide is dissolved in enough water to produce 250. mL of solution and that 35.0 mL of this solution is titrated to the stoichiometric point with 17.6 mL of 0.0935 M HCl(aq). What percentage of the impure s..

Explain the counterterrorism strategies : Explain the counterterrorism strategies you think are most effective for combating Hezbollah, Hamas, and al-Qaeda. Explain why different strategies are necessary for combating each group, and explain why some strategies may work well for combating mo..

Explain ideal gas originally at stp expands irreversibly : ideal gas originally at STP expands irreversibly and isothermally from point A to point B in the Carnot cycle diagram. It then is expanded reversibly and adiabatically from B to C.

Compute the total cost of units transferred : Compute the total cost of units transferred out using the weighted-average method and compute the total cost of units in ending work-in-process inventory using the weighted-average method.

Money and capital market : Since August 2007, the mortgage-backed securities market has been in crisis and the crisis has required government intervention.In what ways was the government intervention in the Savings and Loans crisis similar to its intervention today?

Explain oi two-part tariff : Assuming that Disneyland wants to serve both types of consumers, find the entry fee and the marginal price under the Oi two-part tariff. Assuming that Disneyland wants to serve both types of consumers, find the entry fee and the marginal price un..

Explain which molecule is polar : Which molecule is polar? Which of the following is not an ionic compound? Which of the following is not an ionic compound?

social-mental health and financial support : A system that would meet not only the physical needs of the person, but would provide social,mental health, and financial support is envisioned as a continuum of care. Pick one managed care model. How does it address the problems and challenges of Lo..

User Account

All Pages