1.

The New York Division of MVP Sports Equipment Company manufactures baseball
gloves. Two production departments are used in sequense: the Cutting Department
and the Stitching Department. In the Cutting Department, direct material, consisting
of imitation leather is placed into production at the beginning of the process. Direct
labor and manufacturing overhead costs are incurred uniformly throughout the
process. The material is rolled to make it softer, and is then cut into the pieces
needed to produce baseball gloves. The predetermined overhead rate is 150% of
direct labor costs. MPV uses weighed average costing.

We have the following data about production in the Cutting Department:
Goods-in-Process, January 1, 2020				10,000 units
	Direct Material-100% Complete				$40,000.00
	Conversion (Labor & Overhead)- 50% Complete				120,000
	Total cost of Goods in Process, January 1, 2020				$160,000.00
Units added in January 2020:				70,000 units
Costs added in January 2020:
	Direct Material				$320,000
	Direct Labor				723,840
	Factory Overhead				1,028,160
	Total costs added in January 2020				$2,072,000
Units in Goods-in-Process, January 31, 2020:				22,000 units
	Direct Material-100% Complete
	Conversion Costs-20% Complete

a) Anaylze the flow of units:

b) Compute equivalent units:

c)Compute the per units:

d)The value of Goods-inProcess in the cutting Department on 1/31/2020:

e)The value of Goods-In-Process transferred to the Stiching Department is: