Furniture Process Costing.doc As Furniture Process Costing.docx (19.1 KB) The costs, units produced, and percentage of completion for the dedicated line appear below! Work in Process: Units Costs % complete Beginning Inventory 1,000 Material 1 - Wood $30,000 100% Material 2- Varnish Material 3- Cushion Direct Labor $16,840 Manufacturing Overhead for the Chair Line 560,000 9,000 Started this period Material 1 - Wood Material - Varnish Material 3- Cushion Direct Labor Manufacturing Overhead for the Chair Line $270,000 53,984 $170,000 596,050 $288, 150 This period there were 8,500 units completed and transferred out to be stored until being sold of units not finished, 40 were scrapped since management considered them to be spoiled. The remai units not completed have progressed 75% of the way through the process ocess all of the wood is added for the planned chair production. Once the chairs are sanded and varnished, each chair has a cushion attached at the 80% point. Varnish is ade once the chair is sanded and cleaned. This takes place when the chairs are 25% of the way through process. All spoilage is detected just after the chairs are sanded and prior to being varnished. Therefore the spoilage detection point is once the chair is 25% of the way through the process. Required for the dedicated line: A Determine the costs to be left in Work in Process, transferred out with good units complete and the costs of spoiled units. Use the weighted average method. B. Record the journal entries that are appropriate for the flow of units out of Work-in-Process C. Consider the ways to handle spoilage. Which method did you choose and why did you make choice? D. Was the move to process costing by FWF appropriate? Furniture Process Costing.doc As Furniture Process Costing.docx (19.1 KB) The costs, units produced, and percentage of completion for the dedicated line appear below! Work in Process: Units Costs % complete Beginning Inventory 1,000 Material 1 - Wood $30,000 100% Material 2- Varnish Material 3- Cushion Direct Labor $16,840 Manufacturing Overhead for the Chair Line 560,000 9,000 Started this period Material 1 - Wood Material - Varnish Material 3- Cushion Direct Labor Manufacturing Overhead for the Chair Line $270,000 53,984 $170,000 596,050 $288, 150 This period there were 8,500 units completed and transferred out to be stored until being sold of units not finished, 40 were scrapped since management considered them to be spoiled. The remai units not completed have progressed 75% of the way through the process ocess all of the wood is added for the planned chair production. Once the chairs are sanded and varnished, each chair has a cushion attached at the 80% point. Varnish is ade once the chair is sanded and cleaned. This takes place when the chairs are 25% of the way through process. All spoilage is detected just after the chairs are sanded and prior to being varnished. Therefore the spoilage detection point is once the chair is 25% of the way through the process. Required for the dedicated line: A Determine the costs to be left in Work in Process, transferred out with good units complete and the costs of spoiled units. Use the weighted average method. B. Record the journal entries that are appropriate for the flow of units out of Work-in-Process C. Consider the ways to handle spoilage. Which method did you choose and why did you make choice? D. Was the move to process costing by FWF appropriate
