Reference no: EM13864613
Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. This problem focuses on the assembly department. The process-costing system at Ashworth has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added when the assembly department process is 10% complete. Conversion costs are added evenly during the assembly department’s process.
Ashworth uses the weighted-average method of process costing. Consider the following data for the assembly department in April 2014:
Physical Unit Direct Materials Conversion Costs
Work in Process, April 1* 60 $1530 $156
Started during April 2014 510
Completed during April 2014 450
Work in process, April 30 ** 120
Total costs added during April 2014 $17,850 $11,544
*Degree of completion: direct materials, 100%; conversion costs, 40%.
*Degree of completion: direct materials, 100%; conversion costs, 15%.
1. Summarize the total assembly department costs for April 2014, and assign them to units completed (and transferred out) and to units in ending work in process.
2. What issues should a manager focus on when reviewing the equivalent units calculation?
3. Complete the problem using the FIFO method of process costing
|
Compute the unit product cost under variable costing
: Sproull Inc., which produces a single product, has provided the following data for its most recent month of operation: Number of units produced 10,700 Variable costs per unit: Direct materials $ 134 Direct labor $ 72 Variable manufacturing overhead $..
|
|
Why does uncertainty exist in an organization''s environment?
: Why does uncertainty exist in an organization's environment?
|
|
Identify dynamic capabilities in your organization
: Identify dynamic capabilities in your organization. Use Teece, Pisano, and Shuen's paper to justify why and how these capabilities are contributing to competitive advantage and outline how they differ from "resources" as identified by Barney.
|
|
What role do ethics play in an organization?
: What role do ethics play in an organization?
|
|
Weighted-average method
: Weighted-average method. McKnight Handcraft is a manufacturer of picture frames for large retailers. Every picture frame passes through two departments: the assembly department and the finishing department. What issues should a manager focus on when ..
|
|
Difference between an organizations structure and itsculture
: What is the difference between an organization's structure and its culture?
|
|
Partial income statement account balances
: The following are partial income statement account balances taken from the December 31, 2016, year-end trial balance of White and Sons, Inc.: restructuring costs, $450,000; interest revenue, $55,000; before-tax loss on discontinued operations, $550,0..
|
|
No journal entry required
: For each of the following transaction for New Idea Corporation, prepare the adjusting journal entries required on July 21. (if no entry required Write "no journal entry required".
|
|
Administrative expense budget on budgeted unit sales
: Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,000 units are planned to be sold in April. The remainder of the fixed selling and administrative expense represents current cash flows. T..
|