Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

17-34 Transferred-in costs, weighted-average method (related to 17-31 to 17-33). Larsen Company, as you know, is a manufacturer of car seats. Each car seat passes

17-34 Transferred-in costs, weighted-average method (related to 17-31 to 17-33). Larsen Company, as you know, is a manufacturer of car seats. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing departments process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods.

Larsen Company uses the weighted-average method of process costing. Data for the testing department for October 2014 are as follows:

Physical Units (Car Seats)

Transferred-In Costs

Direct Materials

Conversion Costs

Work in process, October 1a

7,500

$2,932,50

$ 0

$ 835,460

Transferred in during October 2014

?

Completed during October 2014

26,300

Work in process, October 31b

3,700

Total costs added during October 2014

$7,717,500

$9,704,700

$3,955,900

a Degree of completion: transferred-in costs,?%; direct materials,?%; conversion costs, 70%.

b Degree of completion: transferred-in costs,?%; direct materials,?%; conversion costs, 60%.

A). What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory?

B). For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule.

C). For each cost category, summarize total testing department costs for October 2014, calculate the cost per equivalent unit, and assign costs to units completed (and transferred out) and to units in ending work in process.

D). Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Culture Audit In Financial Services Reporting On Behaviour To Conduct Regulators

Authors: Dr Roger Miles

1st Edition

1789667755, 978-1789667752

More Books

Students also viewed these Accounting questions