Question
Synchromatic Industries manufactures tiles for sale in the home renovation industry. It uses the weighted-average method for its two divisions. Division A performs the first
Synchromatic Industries manufactures tiles for sale in the home renovation industry. It uses the weighted-average method for its two divisions. Division A performs the first process in the production process and Division B performs the second. Following is information for Division B for the month of September:
Physical Units | |||
WIP, Sep 1 | 2,600 (30% complete) | ||
Transferred from Division A | 12,000 units | ||
WIP, Sep 30 | 3,000 (10% complete) | ||
Sep 1, WIP | Costs added in September | Total | |
Transferred in | $25,740 | $120,000 | $145,740 |
Direct materials | 8,190 | 48,000 | 56,190 |
Direct Labour | 20,904 | 300,240 | 321,144 |
Overhead | 6,864 | 100,080 | 106,944 |
Total | $61,698 | $568,320 | $630,018 |
In Division B, materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. There is no spoilage of the products.
Calculate the total cost of the units completed and transferred out of Division B in September (rounded) using the FIFO method.
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