Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I think we goofed when we hired that new assistant controller. sald Ruth Scarpino, president of Provost industries. Just look at this report that he

image text in transcribed
image text in transcribed
"I think we goofed when we hired that new assistant controller." sald Ruth Scarpino, president of Provost industries. Just look at this report that he prepared for last month for the Finishing Department. I can't understand it." $ 8.612 (8 03:3231 Finishing Department costs Work in pro inventory. April 1.050 units materials 1001 complete conversion 601 complete Cost transferred in during the month from the preceding department, 2.550 unita Materials cost added during the month Conversion costs incurred during the month Total departmental costs 27,856 11,250 23,640 $ 71,358 $71,358 Finishing Department costs assigned to Units completed and transferred to finished goods, 3.000 units at $23.790 per unit Work in proces inventory, April 30, 600 units materiale 08 complete; conversion 400 complete Total departmental costs assigned $ 71,358 *Consists of cost transferred in. $4.292; materials cost, $2,040; and conversion cost, $2,280 "He's struggling to learn our system, replied Frank Harrop, the operations manager. The problem is that he's been away from process costing for a long time, and it's coming back slowly "It's not just the format of his report that I'm concerned about. Look at that $23.790 unit cost that he's come up with for April. Doesn't that seem high to you?" said Ms. Scarpino. "Yes, it does seem high, but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation," replied Mc Harrop. 'T'll get someone else to redo this report and then we can see what's going on Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. The company uses the weighted average method in its process costing Required: 1-. Calculate the equivalent units of production Required: 1-a. Calculate the equivalent units of production. 1-b. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places.) 1-c. How much cost should have been assigned to the ending work in process inventory? (Round your intermed decimal places.) 1-d. How much cost should have been assigned to the units completed and transferred to finished goods? (Roum calculations to 2 decimal places.) Transferred In Costs Materials Conversion Total 1-a. Equivalent units of production 1-b. Cost per equivalent unit 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out

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

Statistical Sampling And Risk Analysis In Auditing

Authors: Peter Jones

1st Edition

1138263214, 978-1138263215

More Books

Students also viewed these Accounting questions

Question

D How will your group react to this revelation?

Answered: 1 week ago