HomeworkLib
Question

Young company has planned to create a department to produce radios for the up coming year....

Young company has planned to create a department to produce radios for the up coming year. The Dept. has budgeted conversion cost of $500,000. The Dept. started and completed 850 units. The Dept. process time is 20 minutes per unit. The Dept. planned to be available 3,000 hours for production. The unit requires $20 of material cost per unit.

a) What is the cost to be debited to finished goods for the period and b) the journal entry to record the transfer to finished goods. (SHOW ALL WORK)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Requirement a:

Direct materials $17,000
Conversion costs (Direct labor & Overhead) $47,222
Cost to be debited to finished goods $64,222

Calculations:

i. Cost of direct materials = 850 units x $20 per unit = $17,000

ii. Conversion cost per hour = Budgeted conversion cost ÷ Planned hours of production = $500,000 ÷ 3,000 = $166.667

Actual number of hours = 850 units x (20/60) = 283.333 hours

Conversion cost = 283.333 hours x $166.667 = $47,222

.

Requirement b:

Account title and explanation Debit Credit
Finished goods inventory $64,222
Work in process inventory $64,222
[To record transfer to finished goods]
0 0
Add a comment
Know the answer?
Add Answer to:
Young company has planned to create a department to produce radios for the up coming year....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Cost of production Report The Cutting Department of Carpet Company provides the following data for work...

    Cost of production Report The Cutting Department of Carpet Company provides the following data for work in process, January 1, 10,400 unts, completed Direct materials (10.400K $9.60) Conversion (10,400 x 60N 14.10) $99.840 29,952 $1,544 Mersadded during January from Weaving Department, 160,000 units Direct labor for January Factory overhead for January Goods finished during muary (includes goods in process, January 1), 161,800 units Work in process, Manuary 31, 8, 600 unts, 25% completed . Prepare a cost of production report...

  • Cost of Production Report The debits to Work in Process --Roasting Department for Morning Brew Coffee...

    Cost of Production Report The debits to Work in Process --Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,200 pounds, completed "Direct materials (1.200 X 54.5) $5,400 Conversion (1,200 X 60% X 51.8) $1.00 36,696 Coffee beans added during August, 38,000 pounds 169,100 Conversion costs during August Work in process, August 31, 2,000 pounds, os completed Goods finished during August, 37,200 pounds All direct materials are...

  • The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all...

    The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process. Work in process, January 1, 7,400 units, 60% completed $92,204* *Direct materials (7,400 × $10.6) $78,440 Conversion (7,400 × 60% × $3.1) 13,764 $92,204 Materials added during January from Weaving Department, 114,000 units $1,214,100 Direct labor for January 152,631 Factory overhead for January 186,549 Goods finished during January (includes goods in process, January 1), 115,400...

  • Cost of Production Report The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company...

    Cost of Production Report The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows: Work in process, July 1, 1,200 pounds, 20% completed $4,416* *Direct materials (1,200 X $3.4) $4,080 Conversion (1,200 X 20% X $1.4) $336 $4,416 Coffee beans added during July, 38,000 pounds 127,300 Conversion costs during July 56,640 Work in process, July 31, 2,000 pounds, 40% completed ? Goods finished during July, 37,200 pounds...

  • Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company...

    Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 1,000 pounds, 20% completed $3,880* *Direct materials (1,000 X $3.6) $3,600 Conversion (1,000 X 20% X $1.4) $280 $3,880 Coffee beans added during August, 31,000 pounds 110,050 Conversion costs during August 46,260 Work in process, August 31, 1,600 pounds, 40% completed ? Goods finished during August, 30,400 pounds ?...

  • Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company...

    Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2016, together with information concerning production, are as follows: Work in process, August 1, 700 pounds, 20% completed $ 3,479* *Direct materials (700 X $4.70) $3,290 Conversion (700 X 20% X $1.35) 189 $3,479 Coffee beans added during August, 14,300 pounds 65,780 Conversion costs during August 21,942 Work in process, August 31, 400 pounds, 42% completed ? Goods finished during August, 14,600...

  • The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with...

    The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 400 pounds, 60% completed $2,232* *Direct materials (400 X $4.5) $1,800 Conversion (400 X 60% X $1.8) 432 $2,232 Coffee beans added during August, 13,000 pounds 57,850 Conversion costs during August 24,605 Work in process, August 31, 700 pounds, 70% completed ? Goods finished during August, 12,700 pounds ? All direct materials are...

  • Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a...

    Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $34. The budgeted conversion cost for the year is $172,800 for 3,200 production hours. A unit of Style Omega requires 12 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 770 Style Omega units for June. Conversion costs were applied to 770 Style Omega units of production. 720 units of Style...

  • Problem1 – Process costing Timing Tech, a manufacturing company, has two departments: Production department and Finishing...

    Problem1 – Process costing Timing Tech, a manufacturing company, has two departments: Production department and Finishing department. Goods completed in the Production department are immediately sent to the Finishing department. The following data pertains to the Production department. Physical Direct Material Direct Labor Units Cost Cost Beg. WIP inventory (Jan. 1 2014) 200,000 units $ 200,000 $ 315,000 Units Started during the year 1,000,000 units Costs incurred during the year $1,300,000 $1,995,000 End. WIP inventory (Dec. 31 2014) 300,000 units...

  • Lean Accounting The annual budgeted conversion costs for a lean cell are $94,500 for 3,000 production...

    Lean Accounting The annual budgeted conversion costs for a lean cell are $94,500 for 3,000 production hours. Each unit produced by the cell requires 20 minutes of cell process time. During the month, 1,400 units are manufactured in the cell. The estimated materials cost is $45 per unit. Provide the following journal entries: a. Materials are purchased to produce 1,470 units. b. Conversion costs are applied to 1,400 units of production. c. 1,330 units are completed and placed into finished...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT