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The question does not have incomplete data. Please see both pictures and you will find all relevant information. Required (1) Calculate cost per equivalent unit
The question does not have incomplete data. Please see both pictures and you will find all relevant information.
Required (1) Calculate cost per equivalent unit for each cost pool in Assembly and Finishing. In your calculation, clearly show how you determined the costs and equivalent units. Round calculation to nearest penny. (2) Provide all accounting entries for the month. Clearly show debits and credits. If an account is an expense, clearly label the account as an expense in your answer. The company closes its books at the end of each month. [Note: each production department has its own W-I-P account, so in your journal entries, you must clearly specify which W-I-P account is being debited/credited) (3) Prepare income statement for June. You must use multi-step income statement that we discussed in homework and include: gross profit; operating income; net income. Esc A manufacturer uses weighted average method in its financial accounting system. There are two production departments: Assembly; Finishing. Assembly is the first department in the production sequence. In Assembly, direct materials are added at the start of production process while conversion costs are incurred evenly throughout the production process. During June, the department completed 10,000 units and had 2,000 units in ending work- in-process (W-I-P) that were 60% converted. Beginning W-I-P consisted of 1,000 units with the following costs: $ 10,000 direct materials 6,000 direct labor 2,500 manufacturing overhead (electric) $ 18,500 total In Finishing, only direct labor is used in production process. No materials are added; no overhead costs are incurred. On June 1, there were zero units in W-I-P. During June, there were 10,000 units transferred into Finishing from Assembly. Of these units, 7,000 units were completed while 3,000 units remained in ending W-I-P (30% converted). During June, there were 6,000 units sold for $50 per unit (cash). On June 1, finished goods and materials both had zero balances. During June, the company reported the following costs 116,000 materials purchased, purchase on account. 112,400 materials used in June production 129,380 direct labor costs incurred in Assembly (cash) 63,720 electric costs incurred in Assembly (cash) 39,500 direct labor costs incurred in Finishing (cash) 25,00 salary of sales force (cash) 8,000 advertising (cash) 23,000 income taxes (no deferred taxes, cash paid on income earned in June) Step by Step Solution
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