Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fanning Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department's transactions in Year

image text in transcribed
image text in transcribed
image text in transcribed
Fanning Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department's transactions in Year 2: 1. The beginning balance in the Work in Process Inventory account was $12.800. This inventory consisted of parts for 1,000 toys. The beginning balances in the Raw Materials Inventory, Production Supplies, and Cash accounts were $162,775, $2,000, and $400,000, respectively. 2. Direct materials costing $139,075 were issued to the parts department. The materials were sufficient to make 7,000 additional toys. 3. Direct labor cost was $91,000, and indirect labor costs were $9,500. All labor costs were paid in cash. 4. The predetermined overhead rate was $0.35 per direct labor dollar, 5. Actual overhead costs other than production supplies and indirect labor for the year were $22.250, which was paid in cash. 6. The parts department completed work for 4,500 toys. The remaining toy parts were 30 percent complete. The completed parts were transferred to the assembly department, 7. All of the production supplies had been used by the end of Year 2. 8. Over- or underapplied overhead was closed to the Cost of Goods Sold account Required o. Determine the number of equivalent units of production. b. Determine the product cost per equivalent unit c. Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department d. Record the transactions in a partial set of T-accounts. Complete this question by entering your answers in the tabs below. Reg A and B Reg C Req Determine the number of equivalent units of production. Determine the product cost per equivalent unit. (Round "Cost per equivalent unit answer to 2 decimal places.) a Equivalent units b. Cost per equivalent unit Regn Regc > Complete this question by entering your answers in the tabs below. Req A and B ReqC Reg D Calculate the total cost allocated between the ending work in process inventory and parts transferred to the assembly department. (Do not round intermediate calculations.) Cost Allocation To the assembly department To ending work-in-process inventory Total allocated cost Reg A and B Reg C Reg D Record the transactions in a partial set of T-accounts. (The cash expenditures in event No. 3 should be combined into a single amour the cash account. Do not round intermediate calculations.) Cash Raw Materials Beg bal Beg, bal End, bal End, bal Work in process Parts Work in process Assembly Beg. bal Beg bal End, bal End, bal Production Supplies Cost of Goods Sold Beg, bal Beg bal End, bal End, bal Manufacturing Overhead Beg bat End, bal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Walter B Meigs

5th Edition

007041551X, 9780070415515

More Books

Students also viewed these Accounting questions

Question

2. What role should job descriptions play in training at Apex?

Answered: 1 week ago