Crane Industries works hard to keep pace with demand for its modern chandelier. To get it out the door, Crane first machines raw materials into key component parts. Next, the component parts are assembled. These two processing departments work together, coordinating the output from the machining process into the assembly process. All DM resources are added at the beginning of the machining process, while conversion costs are added evenly throughout the process. For May, the following information was available for the machining process. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion (a) Total cost of units completed Cost of units in ending WIP Inventory $ Units $ 400 7,900 7,100 1,200 DM ? $35,800 $379,200 ? Conversion Costs 70% Determine the total cost of units completed and the cost of units in ending WIP Inventory-Machining in May by completing Steps 1-5 of the template, assuming Crane Industries uses the FIFO method of process costing. $22,440 $189,800 40%
Crane Industries works hard to keep pace with demand for its modern chandelier. To get it out the door, Crane first machines raw materials into key component parts. Next, the component parts are assembled. These two processing departments work together, coordinating the output from the machining process into the assembly process. All DM resources are added at the beginning of the machining process, while conversion costs are added evenly throughout the process. For May, the following information was available for the machining process. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion (a) Total cost of units completed Cost of units in ending WIP Inventory $ Units $ 400 7,900 7,100 1,200 DM ? $35,800 $379,200 ? Conversion Costs 70% Determine the total cost of units completed and the cost of units in ending WIP Inventory-Machining in May by completing Steps 1-5 of the template, assuming Crane Industries uses the FIFO method of process costing. $22,440 $189,800 40%
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 67P: Benson Pharmaceuticals uses a process-costing system to compute the unit costs of the...
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Transcribed Image Text:Crane Industries works hard to keep pace with demand for its modern chandelier. To get it out the door, Crane first machines raw
materials into key component parts. Next, the component parts are assembled. These two processing departments work together,
coordinating the output from the machining process into the assembly process. All DM resources are added at the beginning of the
machining process, while conversion costs are added evenly throughout the process. For May, the following information was available
for the machining process.
Units in beginning WIP Inventory
Beginning WIP Inventory degree of completion
Costs in beginning WIP Inventory
New units started
Costs added to WIP Inventory this period
Units completed
Units in ending WIP Inventory
Ending WIP Inventory degree of completion
(a)
Total cost of units completed
Cost of units in ending WIP Inventory
$
Units
$
400
7,900
7,100
1,200
DM
?
$35,800
$379,200
?
Conversion Costs
70%
Determine the total cost of units completed and the cost of units in ending WIP Inventory-Machining in May by completing Steps
1-5 of the template, assuming Crane Industries uses the FIFO method of process costing.
$22,440
$189,800
40%
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