L Corp. produces exterior latex paint, which it sells in one-gallon containers. The company has two processing
Question:
L Corp. produces exterior latex paint, which it sells in one-gallon containers. The company has two processing departments-Base Fab and Finishing. White paint, which is used as the base for all the company's paints, is mixed from raw ingredients in the Base Fab Department. Pigments are added to the basic white paint, the pigmented paint is squirted under pressure into one-gallon containers, and the containers are labeled and packed for shipping in the Finishing Department. Information relating to the company's operations for April follows:
Production data: Units
Units (gallons) in process, April 1: Materials 100% complete, labor and overhead 60% complete: 30,000
Units (gallons) started into production during April : 420,000
Units (gallons) completed and transferred to the Finishing department : 370,000
Units (gallons) in process, April 30: Materials 50% complete, labor and overhead 25% complete 75,000
Cost data:
Work in Process, inventory, April 1:
Materials $93,625
Labor $20,438
Overhead $35,875
Total cost of work in processs $149,938
Cost added during April:
Materials $851,000
Labor $330,000
Overhead $665,000
Total cost added during April $1,846,000
Losses are considered DISCRETE and are found at the end of production. Any losses over 1% of completed units are considered abnormal.
PROBLEM REQUIREMENTS:
For the Base Fab determine the equivalent units of production for direct materials, direct labor and overhead if the company uses weighted average method.
a)Calculate the number of normal losses.
b) Calculate the number of abnormal losses.
c) Calculate the units started and completed.
d) Calculate the equivalent units of production for direct materials.
e) Calculate the equivalent units of production for direct labor and overhead.
f) What is the amount to be transferred to Finishing Department?
g) What is the value of Ending Base Fab WIP Inventory?
PLEASE USE THESE VALUES TO COMPLETE THE EXCEL FORM ATTACHED BELOW!
Prob. Data Section: Cost of Production Report Units Transfers In DM Added Conversion or DL Added Overhead Transfers In DM Added DL Added or Conv Overhead Beg WIP: Beg WIP-% Complete: Beg WIP-$ Cost: Units Started: Costs Added or Accretion: End WIP: End WIP-% Complete: Units Complete: Losses- Normal Losses-% Complete: Losses - Abnormal Losses-% Complete: Cost Method: Solutions: EUPs Beg WIP +Units Started Units to Acct for Weighted Avg. Units Beg WIP completion +Started & Completed =Tot Units completed +End WIP + Normal Loss +Abnormal Loss Units Accted For EUP's--B COST / EUP'S Beg WIP-Cost Totals Costs Added Costs Incurred--A / EUPs Unit Cost per EUP (A/B) Transfers Out End WIP Losses - Normal WA Losses - Abnormal Costs Accounted For file:///var/filecabinet/temp/converter_assets/d0/7a/qattachments_d07ac0249f8b834a929aedd6c976316436bd3bbf.xlsx 1 04/29/2017 Form 10:50:01 (9) Demp Pr 6.34 Found Sound Factory Beg 1,000 Beg DM Beg CC DM Added DL Added OH Applied End DM End CC $ $ $ $ $ $ $ WIP 4,133.20 873.10 CoGM 5,006.30 $89,090 62,928.00 9100 units 13,070.00 10,357.00 91,361.30 $1,723 $548 $2,271 Fin Goods CoGM $89,090 9100 units Units Complete and Trans Out 9100 $ 10,357.00 $ 10,357.00 WA $89,090 Start & Complete 8100 80% DM 70% CC WIP DL $ 13,070.00 Wages Payable $ 13,070.00 DL payroll accrued Fin Goods $89,090 WIP Move goods to warehouse (CoGM) Started 8400 1000 End 300 WIP $ 62,928.00 RM $ 62,928.00 Material Requisitions WIP MOH Apply OH | 60% DM 30% CC