Question bemidji manufacturing manufactures laptop

Reference no: EM13349489

Question :

Bemidji Manufacturing manufactures laptop computers in three departments: assembly, packaging and testing. Prior to the start of the production process, all of the component and materials parts are placed into a "kit." Manufacturing starts when the assembly department receives a kit and starts putting the computer together. Thus, all materials are added at the starting of the work in the assembly department. Conversion costs are added evenly all through the assembly process. Consider the Assembly Department of Bemidji Manufacturing started August with 800 units in its work-in-process inventory; assembly on these units was three-fourths complete at the starting of the month. During the month of August, 3,000 units were started in the Assembly Department. At the end of the month, 300 of the units started were still in process; assembly on these units is two-thirds complete. The costs related with production in assembly during the month of August were as follows: cost of units in starting work in process inventory $228,000; costs of materials used in August $630,000; and cost of manufacturing and direct labor overhead for August $527,000.

Required:

1. Evaluate the cost of goods completed and transferred out of the Assembly Department.

2. Evaluate the cost of the ending work-in-process inventory in the Assembly Department.

Reference no: EM13349489

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