Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PROBLEM 3-2. Comprehensive Problem, One Department [LO 3, 4] Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several

PROBLEM 3-2. Comprehensive Problem, One Department [LO 3, 4] Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several points in the production process. In August, production began with 600 filters in Work in Process, 80 percent complete as to materials and 70 percent complete as to labor and overhead. During the month, an additional 2,700 units were started into production. 700 filters were in Work in Process at the end of the month, and they were 70 percent complete as to materials and 60 percent complete as to labor and overhead.

Cost of information for August Beginning WIP (Inventory) Cost Added in August
Direct Material $ 45,000 $ 267,090
Direct Labor $ 11,000 $ 76,580
Manufacturing Overhead $ 80,000 $ 496,820
Total $ 136,000 $ 840,490

Required a. Calculate the cost per equivalent unit for each of the three cost items and in total. b. Calculate the cost of items completed in August and the cost of ending Work in Process inventory. c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in August.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

2nd Edition

103244293X, 978-1032442938

More Books

Students also viewed these Accounting questions