Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

manufactures shampoo in two departments, Mixing and Packing. Once the shampoo mixture is completed in the Mbxding Department, it is sent to the Packing department,

image text in transcribed
image text in transcribed
manufactures shampoo in two departments, Mixing and Packing. Once the shampoo mixture is completed in the Mbxding Department, it is sent to the Packing department, where a machine ils and seals individual botses, which are then passed to a machine that places the botties in individual boxes. In the Mocing department, materials are added at the beginning of the process. In the Packing department, however, we have several different materials and, therefore, materials are added at different parts of the process. (The percentage of completion amounts are given, so that you don't have to figure out what materials are added where ) for assignment of production costs. The company uses the The following inomation is related to production in the Mixing Department for February 2016: Beginning work in process (90%) Started in February Ending work in process(70%) 15,000 30,000 Total $12,200 Material Conversion Beginning work in process $8,s00 $3,700 Current 254,750 192,500447250 250 Required standards (in the both departments, units are inspected 75% of the way through the production process.) In doing your computations, round ALL equivalent unit costs to 2 decimal places aFor requirements 1 and 2, assume that all units produced were 'good" units and met the company's quality-control . Prepare a production report for the Maxing Department 2. Prepare the journal entry to record the completion of units in the Mixing Departmernt 3. SUPPOSE that the FIFO method was used for this department instead. What would be the equivalent units and unit costs for materials and conversion 4 Suppose that the units are inspected at the end of the miking department before they are transferred to packing, and 10,000 of the units failed inspection and were removed from production at that point. That is, suppose that 10,000 units were "spolage' and only 635,000 were completed and transferred to packing. a) How do you think we should handle this situation? Any idea? Would it matter whether the spoilage was normal or abnormal? What journal entry do you think we would make in each case? What f, instead ofthe unis being inspected at the END of the mising,instead,the inspection point happened to be when they were 60% completed, would this change or answer at an b)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions