Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000 Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation Equivalent units Flow of production Physical units Direct materials Conversion co... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134453736
8th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
Posted Date:
Students also viewed these accounting questions
-
Materials are added at the beginning of the production process at Santiago Company, which uses a FIFO process costing system. The following information on the physical flow of units is available for...
-
At mixing department, all materials are added at the beginning of the process. Lahore and overhead (conversion resources) are added evenly throughout the process. The following information pertains...
-
Macadam Corp. uses the weighted average method of process costing. Its cost per equivalent unit for direct materials was $5.00 this period. It had 22,200 equivalent units for direct materials....
-
Imagine that you are a human resource manager in a domestically based company that has decided to operate internationally. You have been charged with sorting out the HRM effects of the decision. What...
-
Dean Plumbing issues $1,000,000 face value, noninterest-bearing bonds on December 31, 2009. The bonds are issued at 65 and mature on December 31, 2013. Required: Assuming the straight-line...
-
As of December 31, 2008, Biloxi Corporation has 10,000 shares of 8%, $100 par value cumulative preferred stock outstanding. Biloxi has not paid any dividends to its stock- holders during the past...
-
What is a cut-off bank reconciliation?
-
Software Solutions, Inc., was started by two young software engineers to market SpamBlocker, a software application they had written that screens incoming e-mail messages and eliminates unsolicited...
-
3. Suppose that an investor has access to Euro spot, Euro forward exchange markets and that the investor can lend or borrow in Euros. To create synthetic long forward the investor should, a.?...
-
The case study shown below provides an overview of Road Transit Systems (RTS) - a specialist preventative vehicle maintenance program operator in NSW, Australia. A number of attributes have been...
-
como resolver el siguiente ejercicio? EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Broadening Your Perspective Prior to October 2017, the company had been profitable every...
-
Question: should Alex rent or buy? Please provide your work detail for full credit! Alex is deciding between renting and buying. He is able to save enough for a 20% down payment for a mortgage loan....
-
Timothy is currently pursuing a financial planning degree with a 100% performance scholarship at Campbellsville University. After graduation, if he expects to earn the following (cash flows)...
-
calculate Hegle's free cash flowing this year assuming it spent $ 510 on a new capital equipment and increased current assets net of non-interested-bearing current liabilities by $340.
-
James's Industries reported net income of $11000 and paid cash dividends of $3000. Changes in balance sheet accounts for the year were as follows: Increase (Decrease) Accounts receivable ($6000)...
-
Asgard Fashions worked on only two jobs during May, for a very important customer. Information on the jobs is given below: Direct Materials Direct Job 1: A Horned Helmet Job 2: A Golden Crown $...
-
1, how do you think partners are impacted by PMAD's? Include any resources you use to answer this question. 2,How do you think one's cultural background(s) could impact the rate of PMADs? Include any...
-
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
-
The following are account balances relating to 2019 (in thousands}: Property tax on plant building $ 3,800 Marketing, distribution, and customer-service costs 44,400 Finished goods inventory, January...
-
Green News Group has two major divisions: Print and Internet. Summary fina ncial data (in millions) for 2017 and 2018 are as follows: The two division managers' annual bonuses are based on division...
-
A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 201 8, the company incurred $900,000 on direct materials and $957,600 on conversion costs, for...
-
1.11 Market Conditions. The decisions of MNEs to move to new markets invariably take advantage of both market imperfections and market efficiencies. Explain.
-
1.12 Why Go. Why do firms become multinational?
-
1.13 Investment Motives of Firms. What is the differ- ence between proactive and defensive investment motives?
Study smarter with the SolutionInn App