Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are 6 parts for this question Larsen Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and

image text in transcribed

image text in transcribed

There are 6 parts for this question

Larsen Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 95% complete. Conversion costs are added evenly during the testing department's process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Larsen Company uses the weighted-average method of process costing. Data for the testing department for October 2017 are as follows: (Click the icon to view the testing department data.) Read the requirements. *** Requirement 1. What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory? (a) Beginning work-in-process inventory (b) Ending work-in-process inventory Transferred-in costs Direct materials be Data table Work in process, October 1 Transferred in during October 2017 Completed during October 2017 Physical Units (Car Seats) 9,000 Requirements ? 29,300 5,200 Transferred-In Costs $2,933,000 Conversion Costs $0 $1,070,490 Direct Materials Work in process, October 31b Total costs added during October 2017 $9,383,500 $10,723,800 $4,440,910 aDegree of completion: transferred-in costs, 2%, direct materials, ?%, conversion costs, 75%. bDegree of completion: transferred-in costs, ?%, direct materials, 2%, conversion co 60%. 1. What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory? - 2. For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule. 3. For each cost category, summarize total testing department costs for October 2017, calculate the cost per equivalent unit, and assign costs to units completed (and transferred out) and to units in ending work in process. 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. X

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_2

Step: 3

blur-text-image_3

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

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

4th edition

78025524, 978-0078025525

More Books

Students also viewed these Accounting questions