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.

	Gallons	Sales Price Per Gallon at Split-Off	Disposal Cost Per Gallon at Split-Off	Further Processing Costs	Final Sales Price Per Gallon
Mal	2,400	$225.50	$62.50	$50	$350
Nal	1,100	300	150	100	500
Qal	500	500	400	100	750

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?