Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, Dl-3800, DI-5000, and DI8000. Drew manufactures the tractors in two departments - Fabrication and Detalling. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table, Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detaling? Complete this question by entering your answers in the tabs below. What is the unit cost of each model transferred to finished goods in February? Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. What is the unit cost of each model transferred to finished goods in February? What is the unit cost of each model transferred to finished goods in February? What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Pacific Siding Incorporated produces synthetic wood siding used in the construction of residential and commercial buildings. Pacific Siding's fiscal year ends on March 31, and the weighted-average method is used for the company's process costing system. Financial results for the first 11 months of the current fiscal year (through February 28) are well below the expectations of management, owners, and creditors. Halfway through the month of March, the chief executive officer (CEO) and the chief financial officer (CFO) ask the controller to estimate the production results for the month of March in the form of a production cost report (the company has only one production department). This report is shown as follows. PACIFIC SIDING INCORPORATED Preliminary Production Cost Report Month Ending March 31 Step 1: Summary of Physical Units and Equivalent Unit Calculations Units to be accounted for: Units in beginning WIP inventory Units started during the period Physical Step 2: Summary of Costs to Be Accounted for Costs to be accounted for: costs in beginning WIP inventory Costs incurred during the period Total costs to be accounted for Step 3: Calculation of Cost per Equivalent Unit Total costs to be accounted for (a) Total equivalent units accounted for (b) Cost per equivalent unit (a)(b) \begin{tabular}{crrr} DirectMaterials & \multicolumn{1}{c}{ Direct } & & \\ Labor & Overhead & Total \\ \hline$87,000 & $101,000 & $161,000 & 349,000 \\ 66,000 & 86,000 & 146,000 & 298,000 \\ \hline$153,000 & $187,000 & $307,000 & $647,000 \\ \hline \end{tabular} Step 4: Assign Costs to Units Transferred Out and Units in Ending WIP Inventory Direct Costs assigned to units transferred out Costs assigned to ending WIP inventory Total costs accounted for Armed with the preliminary production cost report for March, and knowing that the company's production is well below capacity, the CEO and CFO decide to produce as many units as possible for the last half of March, even though sales are not expected to increase any time soon. The production manager is told to push his employees to get as far as possible with production, thereby increasing the percentage of completion for ending WIP inventory. However, since the production process takes three weeks to complete, all of the units produced in the last half of March will be in WIP inventory at the end of March. Required: b. Using the following assumptions, prepare a revised estimate of production results in the form of a production cost report for the month of March. Assumptions based on the CEO and CFO request to boost production: 1. Units started and partially completed during the period will increase to 280,000 (from the initial estimate of 81,000 ). This is the projected ending WIP inventory at March 31. 2. Percentage of completion estimates for units in ending WIP inventory will increase to 80 percent for direct materials, 85 percent for direct labor, and 90 percent for overhead. 3. Costs incurred during the period will increase to $106,000 for direct materials, $113,000 for direct labor, and $161,000 for overhead (recall that most overhead costs are fixed). 4. All units completed and transferred out during March are sold by March 31 . c. Compare your new production cost report with the one prepared by the controller. How much do you expect profit to increase as a result of increasing production during the last half of March? d. Is the request made by the CEO and CFO ethical? Complete this question by entering your answers in the tabs below. Compare your new production cost report with the one prepared by the controller. How much do you expect profit to increase as a result of increasing production during the last half of March? Using the following assumptions, prepare a revised estimate of production results in the form of a production cost report for the month of March. Assumptions based on the CEO and CFO request to boost production: 1. Units started and partially completed during the period will increase to 280,000 (from the initial estimate of 81,000 ). This is the projected ending WIP inventory at March 31. 2. Percentage of completion estimates for units in ending WIP inventory will increase to 80 percent for direct materials, 85 percent for direct labor, and 90 percent for overhead. 3. Costs incurred during the period will increase to $106,000 for direct materials, $113,000 for direct labor, and $161,000 for overhead (recall that most overhead costs are fixed). 4. All units completed and transferred out during March are sold by March 31. Note: Do not round intermediate "Cost per equivalent unit " answer. Round other intermediate calculations to the nearest whole dollar. Month Ending March 31 Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, Dl-3800, DI-5000, and DI8000. Drew manufactures the tractors in two departments - Fabrication and Detalling. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table, Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detaling? Complete this question by entering your answers in the tabs below. What is the unit cost of each model transferred to finished goods in February? Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. What is the unit cost of each model transferred to finished goods in February? What is the unit cost of each model transferred to finished goods in February? What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Pacific Siding Incorporated produces synthetic wood siding used in the construction of residential and commercial buildings. Pacific Siding's fiscal year ends on March 31, and the weighted-average method is used for the company's process costing system. Financial results for the first 11 months of the current fiscal year (through February 28) are well below the expectations of management, owners, and creditors. Halfway through the month of March, the chief executive officer (CEO) and the chief financial officer (CFO) ask the controller to estimate the production results for the month of March in the form of a production cost report (the company has only one production department). This report is shown as follows. PACIFIC SIDING INCORPORATED Preliminary Production Cost Report Month Ending March 31 Step 1: Summary of Physical Units and Equivalent Unit Calculations Units to be accounted for: Units in beginning WIP inventory Units started during the period Physical Step 2: Summary of Costs to Be Accounted for Costs to be accounted for: costs in beginning WIP inventory Costs incurred during the period Total costs to be accounted for Step 3: Calculation of Cost per Equivalent Unit Total costs to be accounted for (a) Total equivalent units accounted for (b) Cost per equivalent unit (a)(b) \begin{tabular}{crrr} DirectMaterials & \multicolumn{1}{c}{ Direct } & & \\ Labor & Overhead & Total \\ \hline$87,000 & $101,000 & $161,000 & 349,000 \\ 66,000 & 86,000 & 146,000 & 298,000 \\ \hline$153,000 & $187,000 & $307,000 & $647,000 \\ \hline \end{tabular} Step 4: Assign Costs to Units Transferred Out and Units in Ending WIP Inventory Direct Costs assigned to units transferred out Costs assigned to ending WIP inventory Total costs accounted for Armed with the preliminary production cost report for March, and knowing that the company's production is well below capacity, the CEO and CFO decide to produce as many units as possible for the last half of March, even though sales are not expected to increase any time soon. The production manager is told to push his employees to get as far as possible with production, thereby increasing the percentage of completion for ending WIP inventory. However, since the production process takes three weeks to complete, all of the units produced in the last half of March will be in WIP inventory at the end of March. Required: b. Using the following assumptions, prepare a revised estimate of production results in the form of a production cost report for the month of March. Assumptions based on the CEO and CFO request to boost production: 1. Units started and partially completed during the period will increase to 280,000 (from the initial estimate of 81,000 ). This is the projected ending WIP inventory at March 31. 2. Percentage of completion estimates for units in ending WIP inventory will increase to 80 percent for direct materials, 85 percent for direct labor, and 90 percent for overhead. 3. Costs incurred during the period will increase to $106,000 for direct materials, $113,000 for direct labor, and $161,000 for overhead (recall that most overhead costs are fixed). 4. All units completed and transferred out during March are sold by March 31 . c. Compare your new production cost report with the one prepared by the controller. How much do you expect profit to increase as a result of increasing production during the last half of March? d. Is the request made by the CEO and CFO ethical? Complete this question by entering your answers in the tabs below. Compare your new production cost report with the one prepared by the controller. How much do you expect profit to increase as a result of increasing production during the last half of March? Using the following assumptions, prepare a revised estimate of production results in the form of a production cost report for the month of March. Assumptions based on the CEO and CFO request to boost production: 1. Units started and partially completed during the period will increase to 280,000 (from the initial estimate of 81,000 ). This is the projected ending WIP inventory at March 31. 2. Percentage of completion estimates for units in ending WIP inventory will increase to 80 percent for direct materials, 85 percent for direct labor, and 90 percent for overhead. 3. Costs incurred during the period will increase to $106,000 for direct materials, $113,000 for direct labor, and $161,000 for overhead (recall that most overhead costs are fixed). 4. All units completed and transferred out during March are sold by March 31. Note: Do not round intermediate "Cost per equivalent unit " answer. Round other intermediate calculations to the nearest whole dollar. Month Ending March 31