Reference no: EM132432228

Question -

Part A) Dorchester Company, on March 1, 2019 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 18,500 units. At the end of the month there were 10,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 70% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

Direct Material $31,000

Direct Labor 32,000

Factory Overhead 25,000

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March.

Part B) Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided:

Item Amount

Sales $850,000

Beginning Raw Material Inventory 74,000

Direct Material Purchased 308,000

Factory Overhead 90,000

Finished Goods Inventory - January 1 144,000

Work in Process - January 1 74,000

Work in Process - December 31 98,000

Ending Raw Material Inventory 58,000

Finished Goods Inventory - December 31 168,000

Net Income 65,000

Direct Labor 155,000

Cost of Goods Sold 655,000

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018.