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CURRENT DESIGNS Building a kayak using the composite method is a very labor-intensive process. In the Fabrication Department, the kayaks go through several steps as
CURRENT DESIGNS | |||||||||||
Building a kayak using the composite method is a very labor-intensive process. In the Fabrication Department, the kayaks go through | |||||||||||
several steps as employees carefully place layers of Kevlar in a mold and then use resin to fuse together the layers. The excess resin is | |||||||||||
removed with a vacuum process, and the upper shell and lower shell are removed from the molds and assembled. The seat, hatch, and other | |||||||||||
components are added in the Finishing Department. | |||||||||||
At the beginning of April, Current Designs had 30 kayaks in process in the Fabrication Department. Rick Thrune, the production manager, | |||||||||||
estimated that about 80% of the material costs had been added to these boats, which were about 50% complete with respect to the conversion | |||||||||||
costs. The costs of this inventory had been calculated to be $8,400 in materials and $9,000 in conversion costs. | |||||||||||
During April, 72 boats were started. At the end of the month, the 35 kayaks in the ending inventory had 20% of the materials and 40% of | |||||||||||
the conversion costs added to them. | |||||||||||
A review of the accounting records for April showed that materials with a cost of $17,500 had been requisitioned by the Fabrication | |||||||||||
Department and that the conversion costs for the month were $39,600. | |||||||||||
Instructions | |||||||||||
Complete a production report for April 2017 for the Fabrication Department using the weighted-average method. | |||||||||||
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . | |||||||||||
After you have completed the requirements of CD3, consider this additional question. | |||||||||||
1. | Assume that 25 kayaks remained in ending work in process and conversion costs incurred during the period changed to 42,500. | ||||||||||
$60,000. Show the impact of this change on the calculation of equivalent units, unit cost, and on the cost reconciliation schedule. | |||||||||||
(Round calculation of cost per equivalent units to 3 decimal points.) | |||||||||||
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