Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000 Millennium Textiles Company makes silk banners and uses the weighted-average method of process costing. Direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. (Click the icon to view the process costing data.) Determine the equivalent units of work done in July, and calculate the cost of units completed and transferred out (including normal spoilage), the cost of abnormal spoilage, and the cost of units in ending inventory. Determine the equivalent units of work done in July Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Normal spoilage Abnormal spoilage Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Work in process, (July 1) Started in July 2020 Good units completed and transferred out in July Normal spoilage Abnormal spoilage Work in process, July 31 Total costs added during July 2020 Physical Units (Banners) 1,200 ? 47,500 5,500 4,000 6,000 "Degree of completion: direct materials 100%; conversion costs, 50% Degree of completion: direct materials, 100%; conversion costs 50% Print Done Direct Conversion Materials Costs $125,000 $8,000 $190,000 - X $28,000
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation Equivalent units Flow of production Physical units Direct materials Conversion co... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134453736
8th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
Posted Date:
Students also viewed these accounting questions
-
Materials are added at the beginning of the production process at Santiago Company, which uses a FIFO process costing system. The following information on the physical flow of units is available for...
-
At mixing department, all materials are added at the beginning of the process. Lahore and overhead (conversion resources) are added evenly throughout the process. The following information pertains...
-
Macadam Corp. uses the weighted average method of process costing. Its cost per equivalent unit for direct materials was $5.00 this period. It had 22,200 equivalent units for direct materials....
-
Imagine that you are a human resource manager in a domestically based company that has decided to operate internationally. You have been charged with sorting out the HRM effects of the decision. What...
-
Bel-Air, Inc., is a small engineering corporation that surveys land for development. The company has grown rapidly over the past few years, and management has to decide whether to hire new engineers...
-
Find the cofactor. (a) T2,3 (b) T3,2 (c) T1,3 23-1 2
-
(Risk and volume of trade) On 15 January 2016, the U.S. government issued two series of bonds. The two series are completely identical except for the fact that the volume of trade in the first series...
-
Shredder Manufacturing has the following projected unit sales (at $18 per unit) for four months of operations: January .........25,000 February ........30,000 March ........32,000 April...
-
Prepare an Income Statement for the business for the year ended 3 0 April, 2 0 2 4 .
-
In 2023, Lisa and Fred, a married couple, have taxable income of $400,000. If they were to file separate tax returns, Lisa would have reported taxable income of $225,000 and Fred would have reported...
-
The front-line staff member is a critical member to the performance improvement (PI) team, as they offer valuable insight into daily operational functions where variation and waste generally occur....
-
Substantial expectation gaps arise within countries. How is the problem likely to be affected by the increasing use of audited financial statements by foreign nationals?
-
The Alpha division of the Carlson Company manufactures product X at a variable cost of 40 per unit. Alpha divisions fixed costs, which are sunk, are 20 per unit. The market price of X is 70 per unit....
-
Gand Co. are a firm of Chartered Accountants. The firm acts as auditors to HI] (Cash and Carry) Ltd, a small wholesaling company which imports electronic consumer goods for sale to the retail trade....
-
Compare and contrast the auditing standards of France and Japan with those of the United Kingdom. What differences appear to exist in the fundamental role of the auditor in each of these countries?
-
Telluride Railway sells half of its tickets for the regular price of \(\$ 60\). The other half go to senior citizens and children for the discounted price of \(\$ 40\). Variable cost per passenger is...
-
Find the direction angle of the vector w=5i-3j. That Is, find the angle between 0 and 360 that w makes with the positive x-axis (measured counterclockwise), when w is in standard position.Do not...
-
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
-
The following are account balances relating to 2019 (in thousands}: Property tax on plant building $ 3,800 Marketing, distribution, and customer-service costs 44,400 Finished goods inventory, January...
-
Green News Group has two major divisions: Print and Internet. Summary fina ncial data (in millions) for 2017 and 2018 are as follows: The two division managers' annual bonuses are based on division...
-
A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 201 8, the company incurred $900,000 on direct materials and $957,600 on conversion costs, for...
-
Describe the constraints on providing useful information. LO9
-
Discuss the three principles that are used to measure and record business transactions. LO10
-
Identify the four assumptions that underlie accounting. LO9
Study smarter with the SolutionInn App