Cost of Production Report; Originating Department; Average Costing. Tyndol Fabricators Inc. manufactures a product in two departments.
Question:
Cost of Production Report; Originating Department; Average Costing. Tyndol Fabricators Inc. manufactures a product in two departments. The product is cut out of sheet metal and bent to shape in the Cutting and Forming Department and then transferred to the Assembling Department, where parts purchased from outside vendors are added to the base unit. Since only one product is manufactured by the company, a process cost system is used. The company uses the average cost flow assumption to account for its work in process inven¬ tories. Data related to November operations in the Cutting and Forming Department are: LO3 Units in beginninginventory. 800 Units started in process thisperiod. 3,200 Units transferred to Assembling Department thisperiod. 3,400 Units in ending inventory (75% materials, 40% labor, 25%overhead). 600 Beginning Added Inventory This Period Costs charged to the department Materials.
Directlabor.
Factory overhead.
$17,923 $68,625 2,352 14,756 3,800 29,996 Required: Prepare a November cost of production report for the Cutting and Forming Department.
Step by Step Answer:
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry