Question
Factory makes feather pillows. The manufacturing takes place in two departments: A. Sewing department: cuts the cover for the pillow from cotton fabric, sews it
Factory makes feather pillows.
The manufacturing takes place in two departments:
A. Sewing department: cuts the cover for the pillow from cotton fabric, sews it together, and adds a zipper to allow input of the feather stuffing.
B. Stuffing department: fills the pillow covers with feather down, and inspects and packages the pillows for sale.
- Felicity uses process costing to determine its product costs.
- All materials for each department are added at the beginning of the process, and conversion costs are added evenly throughout.
The following details are available for June production in the sewing department. Beginning inventory
Number of pillows 480
Direct materials $5,328
Conversion cost $1,300
Per cent completion 25%
Month of June activity
Number of pillows started 5,600
Direct materials added $61,600
Direct labour added $31,056
Manufacturing overhead $26,624
Number of pillows completed 5,440
Per cent completion of ending inventory 70%
- The company uses the first in, first out (FIFO) method.
- What is the cost of the pillows in WIP ending inventory in the sewing department for June?
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