Question
Need this by 6 PM tonight PLEASE HELP! Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct materials
Need this by 6 PM tonight PLEASE HELP! Wilson Dynamics makes flanges in a continuous process through two departments: Forging and Assembly. All direct materials are added at the beginning of the process in the Forging Department, whereas all direct materials are added at the end of the process in the Assembly Department. Conversion costs are incurred uniformly over time in both departments. As units are completed in the Forging Department, they are transferred to the Assembly Department. The costs associated with the transferred units are included in the computation of the Assembly Department's total costs. The information presented below was compiled at the end of July: Beginning Inventories (on July 1): |
Forging Department |
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Assembly Department | |||||||||||||||||||||||||||||||||||||||||||||
Physical units in production carried forward from June 30 | 5,000 | 4,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Costs: | ||||||||||||||||||||||||||||||||||||||||||||||||
Transferred Forging costs carried forward from June 30 | $ | 68,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Direct materials costs carried forward from June 30 | $ | 45,000 | ? | |||||||||||||||||||||||||||||||||||||||||||||
Conversion costs carried forward from June 30 | 16,000 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Current Production (in July): | ||||||||||||||||||||||||||||||||||||||||||||||||
Units started during July | 75,000 | ? | ||||||||||||||||||||||||||||||||||||||||||||||
Units in ending inventories as of July 31 | 8,000 | 16,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Costs: | ||||||||||||||||||||||||||||||||||||||||||||||||
Forging costs transferred to Assembly during July | ? | |||||||||||||||||||||||||||||||||||||||||||||||
Direct materials costs incurred in July | $ | 675,000 | $ | 720,000 | ||||||||||||||||||||||||||||||||||||||||||||
Conversion costs incurred in July | 608,000 | 191,400 | ||||||||||||||||||||||||||||||||||||||||||||||
Percentage of Completion: | ||||||||||||||||||||||||||||||||||||||||||||||||
Inventories with respect to conversion on July 1 | 40 | % | 25 | % | ||||||||||||||||||||||||||||||||||||||||||||
Inventories with respect to conversion on July 31 | 75 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||
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