Reference no: EM133071194
Questions -
Q1. Lachi Company manufactures a product in 3 departments. Information related to the 2nd department are:
Work in process, beginning (75% conversion cost) - 1,400 u
Units received from Department 1 - 4,600 u
Units transferred to Department 3 - 5,000 u
Work in process, end (60% material, 30% conversion cost) - 1,000 u
Production costs:
Work in process, beginning - $34,842
Cost from Department 1 - 70,380
Direct Materials - 20,440
Direct labor - 17,526
Factory Overhead - 35,052
Compute for the cost per equivalent unit for conversion cost using FIFO.
Q2. The following information was taken from the records of the Demi Corporation for the month of June: Work In Process, beginning - 7,500 units, ¼ complete, $10,400; Work In Process, end - 4,500 units, 2/5 complete; Placed in process - 75,000 units; Transferred out - 74,000 units. During the month, the entity has used $198,708.75 worth of materials in production and spent $233,775 for conversion costs. Under the FIFO method, how much is the adjustment for lost units if the normal loss occurred at the end of processing?
Q3. Tamara Corporation produces 3 kinds of products from the same process and incurs joint processing costs of $150,000.
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Gallons
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Sales Price Per Gallon at Split-Off
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Disposal Cost Per Gallon at Split-Off
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Further Processing Costs
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Final Sales Price Per Gallon
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Mal
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2,400
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$225.50
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$62.50
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$50
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$350
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|
Nal
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1,100
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300
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150
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100
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500
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Qal
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500
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500
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400
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100
|
750
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Disposable costs for the products if they are processed further are: Mal - $150, Nal - 275, Qal - 50. Compute for the net income attributable to Product Mal, assuming that joint costs are allocated using the Approximate Net Realizable Value x, and after being processed further, 1,800 gallons of Product Mal was sold during the year.
Q4. Sara Corporation has 3 producing departments - Cutting, Sewing and Finishing. In November, the Sewing department transferred 6,200 units to Finishing and had 400 units in process at the end of the month. The Sewing department work in process inventory as of October 31 were 1,200 units. These units were 1/4 incomplete as of that date, with a cost of $13,312. Out of this total amount, 40% was materials cost, while the cost of labor was 1/3 of conversion cost. The units started in the Sewing department during November were received from the preceding department at a cost of $47,595.60. For the same month, the sewing department incurred $11,772 for materials, $15,660 for labor and $2,268 for overhead. As of the end of the month, the department has done one quarter of the work required to complete the units in process. How much is the cost of units transferred to the Finishing department?