Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Thornton Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts department s transactions in

Thornton Plastic Products Company makes a plastic toy using two departments: parts and assembly. The following data pertain to the parts departments transactions in Year 2:
The beginning balance in the Work in ProcessParts account was $12,800. This inventory consisted of parts for 1,000 toys. The beginning balances in the Raw Materials Inventory, Production Supplies, and Cash accounts were $214,350, $2,000, and $400,000, respectively.
Direct materials costing $190,650 were issued to the parts department. The materials were sufficient to make 7,000 additional toys.
Direct labor cost was $91,000, and indirect labor costs were $9,600. All labor costs were paid in cash.
The predetermined overhead rate was $0.30 per direct labor dollar.
Actual overhead costs other than production supplies and indirect labor for the year were $17,800, which was paid in cash.
The parts department completed work for 5,500 toys. The remaining toy parts were 40 percent complete. The completed parts were transferred to the assembly department.
All of the production supplies had been used by the end of Year 2.
Over- or underapplied overhead was closed to the Cost of Goods Sold account.
Required
Determine the number of equivalent units of production.
Determine the product cost per equivalent unit.
Equivalent units?
Cost per equivalent unit?
Calculate the total cost allocated between the ending work in process inventory and parts transferred to ?the assembly department.
Cost Allocation
To the assembly department?
To ending work-in-process inventory $?
Total allocated cost?
Record the transactions in a partial set of T-accounts.
image text in transcribed

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

Auditing And GRC Automation In SAP

Authors: Maxim Chuprunov

2013 Edition

3642434525, 978-3642434525

More Books

Students also viewed these Accounting questions

Question

Define the term 'flash point' in chemical engineering.

Answered: 1 week ago

Question

Is SHRD compatible with individual career aspirations

Answered: 1 week ago