Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the weighted average procens costing system. The factory has three departments Molding, Assembling and Finishing For the Aasembling Department vou lhave the following information: Work In Process on August 1. 10,000 units Cost transferred in from Molding Direct Materials costs Conversion costis $199,000 $328,800 183.000 100% complete 60% complete 40 complete Costs incurred in Aurant Transferred in from Molding Direct Materials Conversion Costa $4,284,000 $1,879,200 $450,000 102,000 unita were tranuferred in from Molding during August and 16,000 remained in endang work in peoces. The ending work in process was 100e complete for costs tranaferred in, 90% complete for direct msterialh and 50% complete for convenion costa. Required: For the Assembling Department caleulate the cost of goods transferred out in August to the Finishing department and the amount ofr 1. work in process remaining in assembly at the end ef August using the weighted average assumption. 2. Show how that reconcileE to the costs te account for. 'ou should use journal entries and T account Repeat the first two requirements using the FIFO assumption 3. Problem 2 (25 points) BabySafe, Inc. makes car seats in a local factory. It uses the weighted average procens costing system. The factory has three departments Molding, Assembling and Finishing For the Aasembling Department vou lhave the following information: Work In Process on August 1. 10,000 units Cost transferred in from Molding Direct Materials costs Conversion costis $199,000 $328,800 183.000 100% complete 60% complete 40 complete Costs incurred in Aurant Transferred in from Molding Direct Materials Conversion Costa $4,284,000 $1,879,200 $450,000 102,000 unita were tranuferred in from Molding during August and 16,000 remained in endang work in peoces. The ending work in process was 100e complete for costs tranaferred in, 90% complete for direct msterialh and 50% complete for convenion costa. Required: For the Assembling Department caleulate the cost of goods transferred out in August to the Finishing department and the amount ofr 1. work in process remaining in assembly at the end ef August using the weighted average assumption. 2. Show how that reconcileE to the costs te account for. 'ou should use journal entries and T account Repeat the first two requirements using the FIFO assumption 3.
Expert Answer:
Answer rating: 100% (QA)
Answer 1 Weighted Average Method Equivalent Unit Computation Flow of Equivalent Units Physical Transferred Direct Conversion Flow of Production Units in Materials Costs Units to account for Beginning ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The Converting Department of Girders Company uses the weighted average cost method and had 3,500 units in work in process that were 60% complete at the beginning of the period. During the period,...
-
The Assembly Department of A-Okay Company uses the weighted average cost method and had 700 units in work in process that were 60% complete at the beginning of the period. During the period, 4,980...
-
Average Joe Company uses the weighted average cost formula in a perpetual inventory system. Fill in the missing amounts for items (a) through (k) in the following perpetual inventory record (round...
-
Congratulations! Your portfolio returned 11% last year, 2% better than the market return of 9%. Your portfolio had a standard deviation of earnings equal to 18%, and the risk-free rate is equal to...
-
Distinguish between generally accepted auditing standards and generally accepted accounting principles, and give two examples of each.
-
Four cards are selected, one at a time, from a standard deck of 52 playing cards. Let x represent the number of aces drawn in the set of four cards. a. If this experiment is completed without...
-
Impact of a Discount Berol Corporation sold 20-year bonds on January 1, 2008. The face value of the bonds was $100,000; and they carry a 9% stated rate of interest, which is paid on December 31 of...
-
A study of the costs of electricity generation for a sample of 56 British firms in 19461947 yielded the following long-run cost function: AVC = 1.24 + .0033Q + .0000029Q2 .000046QZ .026Z + .00018Z2...
-
Petty cash fund Journalize each of the following petty cash transactions: a . Issued a check to establish a petty cash fund of $ 6 0 0 . If an amount box does not require an entry, leave it blank. b...
-
Willow Corp. (a calendar-year C corporation) reported taxable income before the net operating loss deduction (NOL) in the amount of $100,000 in 2022. Willow had an NOL carryover of $90,000 to 2022....
-
ine (Discontinuance of one of the products) The costs per unit of the three products A. B and C of a company are given below: Product Production arrangements are such that if one product is gi
-
In comparing the translation and the re measurement process, which of the following is true? a. The reported balance of inventory is normally the same under both methods. b. The reported balance of...
-
What is a subsidiarys functional currency? a. The parents reporting currency. b. The currency in which transactions are denominated. c. The currency in which the entity primarily generates and...
-
A subsidiary of Byner Corporation has one asset (inventory) and no liabilities. The functional currency for this subsidiary is the peso. The inventory was acquired for 100,000 pesos when the exchange...
-
Familiarize yourself with the California Code of Civil Procedure and the California Rules of Court at www.courts.ca.gov/.
-
A distillation column is separating methane, ethane, propane, and butane. We pick methane and propane as the keys; thus, ethane is a sandwich component. a. Show the approximate composition profiles...
-
Boards of Directors want management to pursue the interests of the shareholders (higher profits and dividends, higher stock price), but sometimes management pursues its own interests (power, perks, mo
-
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
-
Accrued salaries of $6,750 owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended December 31, 2012. Indicate which items will be...
-
Units of production data for the two departments of Alaska Cable and Wire Company for May of the current fiscal year are as follows: Each department uses the weighted average cost method. a....
-
The total assets and total liabilities for a recent year of Best Buy and Gamestop are shown below. Determine the stockholders equity of eachcompany. Best Buy (in millions) $18,302 11,982 Gamestop (in...
-
A tiny home uses approximately \(12 \mathrm{~kW}\) of electricity per day. What size solar system would be needed to fuel \(80 \%\) of a home's needs for a month (30 days)?
-
Accrual-and Cash-Basis Expenses} Speedy Delivery Company provides next-day delivery across Eastern Canada. During May, Speedy incurred \(\$ 132,600\) in fuel costs. Speedy paid \(\$ 95,450\) of the...
-
Accrual- and Cash-Basis Revenue Magnani Music sells used CDs for \(\$ 2.00\) each. During the month of April, Magnani sold 8,750 CDs for cash and 15,310 CDs on credit. Magnani's cash collections in...
Live Out Loud And Take Up Space Like A Boss The Entrepreneurs Edition - ISBN: B0CTF67DN3 - Free Book
Study smarter with the SolutionInn App