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please help and use a worksheet format Example 1 Year 1 is the first year in a new firm's life. The firm has a sewing
please help and use a worksheet format
Example 1 Year 1 is the first year in a new firm's life. The firm has a sewing department which makes decorated shirts. The sewing department finished 5,000 shirts in year 1 and has worked on another 10,000 which still need the decoration - these are 4/5 done for DM and 1/2 done for CC. The value of the End WIP was $24,000 for DM and $40,000 for CC. The firm spent $39,000 on DM used in the sewing department in year 1 and $80,000 on sewing CC (\$60,000 DL; \$20,000 MOH) in year 1. Year 2 (sewing department): The firm has a sewing department. which makes decorated shirts. Once the t-shirts are finished in sewing, they are sent to the packaging department. The sewing department. finished 15,000 shirts in year 2 and had 8,000 still in process at year end - these were 3/5 done for DM and 40% done for CC. The firm spent $58,000 on DM used in the sewing department and $150,000 on sewing CC in year 2. Year 2 (packaging department): The firm also has a packaging department where the product is pressed, folded, and packaged in red and white gift boxes. The box and ribbon are added when CC is 75% done in the packaging department. During year 2 , sewing finished up 15,000 shirts and sent them to packaging, along with their costs of $212,040. The packaging department finished 13,000 shirts in year 2 and had 3,000 still in process at year end - these are 80% done for CC. The firm spent $19,020 on DM used in packaging and $44,867 on CC in packaging in year 2 . Beginning inventories in packaging for year two were 1,000 units (50% for CC and 0% for DM); costs of $11,000T,$1,333CC. Using Weighted Average and FIFO: a) Compute the total costs for the period b) Compute the equivalent units (EUs) of production c) Compute the costs per EU for the period d) Determine the costs of ending WIP and costs of the completed units (units transferred out) e) What are the journal entries to record materials and conversion costs used in production and to record the costs of goods completed and transferred to packaging Step by Step Solution
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