Below is a cost sheet for Pugs n Rugs Co. a rug manufacturing company. You are the manager and have received the cost of production sheet from the accounting office and need to make some decisions. Item 1: Using the examples you worked on in chapter 3, read the cost of production sheet and explain the story it tells Item 2: Based on your records last period the equivalent units of production for direct materials was $14.50 and conversion was $8.00. Address the questions below. Identify if the change in EUP was an increase or decrease and what amount for each. . What are some contributing factors to the changes? . Are these changes good or bad? What kind of effects will the fluctuation of the cost of EUP have on the decisions you will be making for the next period? Item 3: Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $92,000) and the transfer to finish goods. . Pugs n Rugs Cost of Production Report - Department FIFO Equivalent Units of Production DIRECT MATERIALS CONVERSION WHOLE UNITS UNITS Units Charged to production Beginning WIP Inventory in Process, July 1 Received from Milling Department Total Units accounted for by Sifiting Department 950.00 15,620.00 16,570.00 EUP Direct Materials Units to be assigned costs: Beginning WIP Started and Completed (Transferred to packaging. Beg WIP) Transferred to Packaging Department Ending WIP Total Units to be assigned costs (Must equal total units accounted for by sifting department) 950.00 14,780.00 15,730.00 840.00 16,570.00 14.780.00 14,780.00 840.00 15,620.00 Conversion 475.00 14.780.00 15,255.00 504.00 15,759.00 Exam 2 Part 2 vniorenreis Witte Montone COSTOT EUP ToneECISIONS you will making for the next period? Item 3: Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $92,000) and the transfer to finish goods. Pups Rues Cost of Production Report Department FO Equivalent Units of Production DIRECT MATERIALS CONVERSION WHOLE UNITS UNITS Units Charged to production Beginning WIP Inventory in Process, Ny1 Received from Milling Department Total Units accounted for by Sifting Department 950.00 15 62000 16,570.00 FUP Direct Materials Units to be assigned costs Beginning WIP Started and completed (Transferred to packaging. Be WIP Transferred to Packaging Department Ending WIP Total Units to be assigned costs Mustequal total units accounted for by sifting department 950.00 14,780.00 15.730.00 840.00 16.570.00 14.780.00 14.780.00 84000 15.620.00 Comercio 475.00 14,780.00 15,25500 504.00 15.759.00 COSTS Conversion Direct Materials COSTS Cost per equivalent Unit Total costs for July Sifting Department Total Equivelant Units from step 2 Cost per equivalent Unit 230,000.00 15520.00 14.72 125,000.00 15,759 DO 7.93 Costs Assigned to production Cost of Beginning WIP Cost incurred in period (DMDL + FOH) Total costs to account for 28,470 00 355.000 DO 383,470.00 3,767.69 Costs allocated to completed and partially completed units Beginning WIP To complete Beginning WIP Cost to complete July WIP Cost of started and completed in period Transferred to packaging department Ending inventory WIP Total Costs assigned 217,631 24 117 234.60 28.470.00 3,767,69 32,237.69 334,855.84 367,103.53 16,366.47 383,470.00 12,368 76 3.99772 Below is a cost sheet for Pugs n Rugs Co. a rug manufacturing company. You are the manager and have received the cost of production sheet from the accounting office and need to make some decisions. Item 1: Using the examples you worked on in chapter 3, read the cost of production sheet and explain the story it tells Item 2: Based on your records last period the equivalent units of production for direct materials was $14.50 and conversion was $8.00. Address the questions below. Identify if the change in EUP was an increase or decrease and what amount for each. . What are some contributing factors to the changes? . Are these changes good or bad? What kind of effects will the fluctuation of the cost of EUP have on the decisions you will be making for the next period? Item 3: Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $92,000) and the transfer to finish goods. . Pugs n Rugs Cost of Production Report - Department FIFO Equivalent Units of Production DIRECT MATERIALS CONVERSION WHOLE UNITS UNITS Units Charged to production Beginning WIP Inventory in Process, July 1 Received from Milling Department Total Units accounted for by Sifiting Department 950.00 15,620.00 16,570.00 EUP Direct Materials Units to be assigned costs: Beginning WIP Started and Completed (Transferred to packaging. Beg WIP) Transferred to Packaging Department Ending WIP Total Units to be assigned costs (Must equal total units accounted for by sifting department) 950.00 14,780.00 15,730.00 840.00 16,570.00 14.780.00 14,780.00 840.00 15,620.00 Conversion 475.00 14.780.00 15,255.00 504.00 15,759.00 Exam 2 Part 2 vniorenreis Witte Montone COSTOT EUP ToneECISIONS you will making for the next period? Item 3: Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $92,000) and the transfer to finish goods. Pups Rues Cost of Production Report Department FO Equivalent Units of Production DIRECT MATERIALS CONVERSION WHOLE UNITS UNITS Units Charged to production Beginning WIP Inventory in Process, Ny1 Received from Milling Department Total Units accounted for by Sifting Department 950.00 15 62000 16,570.00 FUP Direct Materials Units to be assigned costs Beginning WIP Started and completed (Transferred to packaging. Be WIP Transferred to Packaging Department Ending WIP Total Units to be assigned costs Mustequal total units accounted for by sifting department 950.00 14,780.00 15.730.00 840.00 16.570.00 14.780.00 14.780.00 84000 15.620.00 Comercio 475.00 14,780.00 15,25500 504.00 15.759.00 COSTS Conversion Direct Materials COSTS Cost per equivalent Unit Total costs for July Sifting Department Total Equivelant Units from step 2 Cost per equivalent Unit 230,000.00 15520.00 14.72 125,000.00 15,759 DO 7.93 Costs Assigned to production Cost of Beginning WIP Cost incurred in period (DMDL + FOH) Total costs to account for 28,470 00 355.000 DO 383,470.00 3,767.69 Costs allocated to completed and partially completed units Beginning WIP To complete Beginning WIP Cost to complete July WIP Cost of started and completed in period Transferred to packaging department Ending inventory WIP Total Costs assigned 217,631 24 117 234.60 28.470.00 3,767,69 32,237.69 334,855.84 367,103.53 16,366.47 383,470.00 12,368 76 3.99772