Problem Set:Due Dec 15
Ward, Inc. manufactures a single product that passes through twodepartments: Extruding and Finishing-Packing. The product isshipped at the end of the day in which it is packed. The productionin the Extruding and Finishing-Packing Departments does notincrease the number of units started.
The cost and production data for the month of October are asfollows:
ProductionData
October production statisticsâ¦. ExtrudingDepartment Finishing-Packing Department
Units in process, 10/1
Units in process, 10/31
Units started or received from preceding dept
Units completed and transferred or shipped
10,000
8,000
20,000
22,000
29,000
6,000
22,000
44,000
Cost Data
Work In Progress, October 1â¦. ExtrudingDepartment Finishing-PackingDepartment
Cost from preceding department
Materials
Labor
Factory Overhead
$5,900
1,900
1,400
$60,200
1,500
2,000
Costs added during October: ExtrudingDepartment Finishing-Packing Department
Materials
Labor
Factory Overhead
$20,100
10,700
8,680
$4,400
7,720
11,830
% of completion of work in process: ExtrudingDepartment Finishing-PackingDepartment
10/1
10/31
10/1
10/31
70%
50 %
0%
0%
50 %
40 %
30 %
35 %
50 %
40 %
30 %
35 %
Materials
Labor
Factory Overhead
In the Extruding Department materials are added at variousstages throughout the process.
In the Finishing-Packing Department, the materials added consistonly of packing supplies. These materials are added at the midpointof the process when the packing operation begins. Cost studies havedisclosed that one half of the labor and overhead costs apply tothe finishing operation and one half of the packing operation. Alllost units occur at the end of the finishing operation when theproduct is inspected. All of the work in process in this departmentat October 1st & 31st was in thefinishing operation stage of the manufacturing process. The companyuses the average costing method.
Required: (1) Units lost, if any, foreach department during October.
(2) The equivalentproduction for the calculation of unit costs for each departmentfor October.
(3) A cost ofproduction report for both departments for October. The reportshould disclose the departmental total cost and cost per unit (formaterials, labor, and overhead) of the units (a) transferred to theFinishing-Packing Department and (b) shipped. Carry unit costs tothree decimal places.
Problem Set:Due Dec 15
Ward, Inc. manufactures a single product that passes through twodepartments: Extruding and Finishing-Packing. The product isshipped at the end of the day in which it is packed. The productionin the Extruding and Finishing-Packing Departments does notincrease the number of units started.
The cost and production data for the month of October are asfollows:
ProductionData
October production statisticsâ¦. ExtrudingDepartment Finishing-Packing Department
| Units in process, 10/1 Units in process, 10/31 Units started or received from preceding dept Units completed and transferred or shipped | 10,000 8,000 20,000 22,000 | 29,000 6,000 22,000 44,000 |
Cost Data
Work In Progress, October 1â¦. ExtrudingDepartment Finishing-PackingDepartment
| Cost from preceding department Materials Labor Factory Overhead | $5,900 1,900 1,400 | $60,200 1,500 2,000 |
Costs added during October: ExtrudingDepartment Finishing-Packing Department
| Materials Labor Factory Overhead | $20,100 10,700 8,680 | $4,400 7,720 11,830 |
% of completion of work in process: ExtrudingDepartment Finishing-PackingDepartment
| |||||||||||||||||
Materials | |||||||||||||||||
Labor | |||||||||||||||||
Factory Overhead |
In the Extruding Department materials are added at variousstages throughout the process.
In the Finishing-Packing Department, the materials added consistonly of packing supplies. These materials are added at the midpointof the process when the packing operation begins. Cost studies havedisclosed that one half of the labor and overhead costs apply tothe finishing operation and one half of the packing operation. Alllost units occur at the end of the finishing operation when theproduct is inspected. All of the work in process in this departmentat October 1st & 31st was in thefinishing operation stage of the manufacturing process. The companyuses the average costing method.
Required: (1) Units lost, if any, foreach department during October.
(2) The equivalentproduction for the calculation of unit costs for each departmentfor October.
(3) A cost ofproduction report for both departments for October. The reportshould disclose the departmental total cost and cost per unit (formaterials, labor, and overhead) of the units (a) transferred to theFinishing-Packing Department and (b) shipped. Carry unit costs tothree decimal places.
