Prepare report for the department

Assignment Help Financial Accounting

Reference no: EM134281

Question

Bell Computers, Ltd., located in Liverpool, England accumulates a standardized personal computer from parts it purchases from various suppliers. The production process contains of several steps starting with assembly of the mother circuit board which contains the central processing unit. This association takes place in the CPU Assembly Department. The company freshly hired a new accountant who prepared the following report for the department for May using the weighted-average method-

Units to be accounted for-

Work in process, May 1: materials 90%

Complete, conversion 80% complete 5,200

Started into production 35,500

Total units 40,700

Units accounted for as follows,

Transferred to next department 31,300

Work in process, May 31: materials 75%

Complete conversion 50% complete 9,400

Total units 40,700

Cost Reconciliation

Cost to be accounted for:

Work in process, May 1 £ 18,980

Cost added in the department 133,509

Total cost to be accounted for £ 152,489

Cost accounted for as follows:

Work in process, May 31 £ 25,098

Transferred to next department 127,391

Total cost accounted for £ 152,489

The company's management would like specific additional information about May's operation in the CPU Assembly Department. (The currency in England is the pound which is signified by the symbol £.)

Required-

1. How many units were started and completed during May?

Units started and completed during May

2. What were the equivalent units of production for May for materials and conversion costs?

Materials Conversion

Equivalent units of production

3. What were the costs per equal unit for May? The following additional data are obtainable concerning the department's costs (Round your answers to 2 decimal places)

Materials Conversion Total

Work in process, May 1 £ 12,168 £ 6,812 £ 18,980

Costs added during May £ 85,241 £ 48,268 £ 133,509

Materials Conversion

Cost per equivalent unit

4. Calculate the material cost as well as the conversion cost of the ending work in process. (Round your cost per equivalent unit calculation to 2 decimal places and final answers to the nearest whole dollar amount.)

Materials Conversion Total

Ending work in process inventory

Equivalent units of production

Cost per equivalent unit

Cost of ending work in process inventory

5. The new manager of the CPU Assembly Department was requested to estimate the incremental cost of processing an additional 1,000 units through the department. He took the unit cost for an comparable whole unit you computed in (3) above and multiplied this figure by 1,000. Will this method yield a valid estimation of incremental cost?

Reference no: EM134281

Questions Cloud

Complete the tentative minimum tax base : For the year 2012, complete the corporation's AMTI Complete the tentative minimum tax Complete the tentative minimum tax base Is there an amount of the AMT? If so, what amount? Assume no ACE adj

What is the product cost for the extension product : What is the product cost for the extension product under absorption and variable costing

Calculate taxable income for 2012 : Calculate taxable income for 2012 Record journal entry to record income tax expense deferred income taxes and income tax payable for 2012

Make the journal entries necessary to record : Make the journal entries necessary to record the transactions above using appropriate dates

Prepare report for the department : This association takes place in the CPU Assembly Department. The company freshly hired a new accountant who prepared the following report for the department for May using the weighted-average method

Calculate the taxable income : Calculate the taxable income for 2012 for Aiden on the basis of the following information. Aiden is married however has not seen or heard from his wife since 2010

Payment of cash dividends are recorded : Payment of cash dividends are recorded as a decrease in cash and an increase in expenses a decrease in cash and a decrease in retained earnings an increase in dividend expense and a decrease in cash a decrease in cash and a decrease in..

Calculate net cash provided by operations : Using only the amounts given calculate net cash provided by operations, both without as well as with the reclassification of the receivables. Which reporting makes Moss look better

What manufacturing step is a restriction : Specified the demand for 1,500 Walnut Tables what is the manufacturing time per processing step and in total to manufacture 1,500 Walnut Tables What manufacturing step is a restriction for the current demand

User Account

All Pages