Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Alkalines, Inc. buys bulk liquid soap, packs it in unit containers and sells to residential users. The packaging is done two distinct steps, Filling/Capping followed

image text in transcribed
image text in transcribed
Alkalines, Inc. buys bulk liquid soap, packs it in unit containers and sells to residential users. The packaging is done two distinct steps, Filling/Capping followed by Cleaning/Inspection. These two steps are carried out in different departments. Alkalines uses an actual process costing system. There were no beginning inventories on January 1, 2018 in the Filling/Capping department. During January 2018, direct materials worth $50,000 and conversion costs of $30,500 were consumed in the Filling/Capping department and the entire quantity of 50,000 filled containers was transferred to the Cleaning/Inspection department. There was also no ending inventory in the Filling/Capping department as of January 31, 2018 Lvo direct materials are added in the Cleaning/Inspection department and conversion costs are incurred evenly throughout the process in the department. The Cleaning and Inspection department had a beginning inventory of 5,000 containers as of January 1, 2018, with the following value: transferred in costs (100%) = $7,500 and conversion costs (60% complete) = $3,300. The ending inventory (as of January 31, 2018) of 10,000 containers in the Cleaning/Inspection department was 80% complete for conversion in that department. Total conversion costs incurred in the Cleaning/Inspection department during January 2018 were $49,700. Assume that there was no spoilage in either department. Alkalines, Inc. uses the Weighted Average method to value its inventory. Required: 1) How many containers were transferred from Cleaning/Inspection into Finished Goods during January 2018? 2) What is the transferred-in-cost per EU for the Cleaning/Inspection department? 3) What is the conversion cost per EU for the Cleaning/Inspection department? 4) What was the total cost of the containers transferred to finished goods inventory 5) What was the cost of the ending work-in-process inventory in the Cleaning/Inspection department as of January 31, 2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions