Accessory World makes floor mats for the automobile industry. Finished sets of mats must pass

through two departments: Cutting and Coating. Large sheets of synthetic material are cut to size in

the Cutting Department and then transferred to the Coating Department, where each set is sprayed

with a chemical coating for improved durability. The following information pertains to May activity

in the Cutting Department:

Cost data:

Total cost of beginning inventory on May 1 . . . . . . . . . . . . . . . . . . . . . . . . . $ 44,800

Direct materials costs incurred in May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

Conversion costs incurred in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,200

Physical units data:

Units in process, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 sets

Units started in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 sets

Units in process, May 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 sets

Percentage of completion data:

Direct materials, May 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%

Conversion, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Direct materials, May 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%

Conversion, May 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

a. Prepare a schedule showing: (1) the number of mat sets transferred from the Cutting Department

to the Coating Department in May, and (2) the number of mat sets started and completed

by the Cutting Department in May.

b. Compute the equivalent units of input resources for the Cutting Department in May.

c. Compute the cost per equivalent unit of input resource for the Cutting Department in May.

d. Prepare the summary journal entry required to transfer the cost of completed mat sets from the

Cutting Department to the Coating Department in May.

e. Compute the total cost assigned to the Cutting Departments ending inventory on May 31.