Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes:
Weighted Average Method, Physical Flow, Equivalent Units, Unit Costs, Cost Assignment, ABC
Swasey Fabrication, Inc., manufactures frames for bicycles. Each frame passes through three processes: Cutting, Welding, and Painting. In September, the Cutting Department of the Tulsa, Oklahoma, plant reported the following data:
- In Cutting, all direct materials are added at the beginning of the process.
- Beginning work in process consisted of 41,500 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $1,205,000; direct labor, $222,800; and applied overhead, $150,000.
- Costs added to production during the month were direct materials, $2,698,400; direct labor, $3,454,700. Overhead was assigned using the following information:
Activity Rate Actual Driver Usage Inspection $150 per inspection hour 4,000 inspection hours Maintenance $750 per maintenance hour 1,600 maintenance hours Receiving $300 per receiving order 2,000 receiving orders - At the end of the month, 121,200 units were transferred out to Welding, leaving 13,400 units in ending work in process, or 25 percent complete.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started