Reference no: EM132634790

Question - Woody furniture shop is in the furniture industry offering wide variety of wooden products. The company implements process cost system on identifying their unit cost. To produce their products, they have 2 department, cutting and assembly. The unit goes first with the cutting department where they cut the woods according to the measurement of the item. Thus, materials are added at the beginning of the process while the conversion cost are applied evenly. After cutting the woods, it would then be transferred to assembly department where the employees will assemble the cut woods according to commercial design of their products. The wood glue is added at the end of the process. furthermore, conversion cost is applied evenly.

Cost and production information for both departments on the year 2019 are presented as follows:

1. Both department doesn't have unfinished products on the year ended, december 31, 2018

2. Cutting department transferred 744,850 cost to assembly department have 3500 unfinished units with a wip ending balance of 150,000

3. Manufacturing overhead is applied at 120% of direct labor for both departments

4. The cutting department started 8,500 units for the year 2019 with total cost charged to department of 1,020,000 in which 379,800 is allocated to material cost

5. The assembly department has unfinished units with 80% completion and charged with 114,000 overhead and have unit cost of 25.60 for the materials

Questions -

1. How much is the labor cost charged in cutting department.

2. What is the unit cost of the materials in cutting department.

3. What is the percentage of completion on the units in cutting department.

4. What is the eup for materials in the cutting department.

5. What should be the balance of the wip end in the cutting department.

6. What is the eup of the overhead in assembly department.

7. What is the unit cost of the labor in assembly department.

8. What is the unit cost of the overhead in assembly department.

9. How much is the completed units in assembly department.

10. What is the total cost charged to assembly department.