Sid crome uses three departments to produce plastic handles for screw drivers: Mixing, Moulding, And Drying. The

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Sid crome uses three departments to produce plastic handles for screw drivers: Mixing, Moulding, And Drying. The Assembly Department attaches the screwdrivers hanks to the handles. Sidcrome’s Drying Department requires no direct materials. Conversion costs are incurred evenly throughout the drying process. Other process costing information follows:
Units:
Beginning work in process........................................................... 7,000 units
Transferred-in from the Moulding Department
during the period..................................................................... 28,000 units
Completed during the period....................................................... 16,000 units
Ending work in process (20% complete as to
conversion work)..................................................................... 19,000 units
Costs:
Beginning work in process (transferred-in cost, $140;
conversion cost, $231)............................................................. $371
Transferred-in from the Moulding Department during the period. 4,760
Conversion costs added during the period ................................... 1,947
After the drying process, the screwdrivers are completed by assembling the handles and shanks and packaging for shipment to retail outlets.
Requirements
1. Draw a time line of the Drying Department’s process, similar to the one in Exhibit 5-10.
2. Use the time line to compute the number of equivalent units of work performed by the Drying Department during the period, the cost per equivalent unit, and the total costs to account for.
3. Assign total costs to
(a) Units completed and transferred to the assembly operation
(b) Units in the Drying Department’s ending work in process inventory.
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Managerial Accounting

ISBN: 978-0176223311

1st Canadian Edition

Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp

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