DiscussionFen Furnishings produces brass handles for the furniture industry in a four-stage process -Mixing, Moulding, Polishingand Packaging. Costs incurred in the Polishing Department during January are summarized as follows:WIP - Polishing Process A/CJanuary 1 Bal.Transfer from MouldingDirect Materials Added20,0001,310,000391,600638,000307,400Direct LabourManufacturing OverheadNormal losses are estimated to be 2%% of input during the period. Inspection takes place during the processing operation, atwhich point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each.At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of completion:Transfer from Moulding100%Direct material added40%Conversion costs20%Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion:Transfer from Moulding100%Direct material added80%Conversion costs50%Direct materials added and conversion costs are incurred uniformly throughout the process.(a) Compute the equivalent units and cost per equivalent units for direct materials (From Moulding &Direct materials added) and conversion costs.(b) Compute the:cost of the unexpected losses• total cost of the handles completed and transferred out of the Packaging Department* cost of ending work in process inventory in the Polishing Department(c) Complete the Work in Process Inventory - Polishing Process T-account, clearly showing the ending balance.(d) Prepare the journal entries for the:• assignment of direct materials, direct labour incurred and the manufacturing overhead applied to thePolishing Processcost of the units completed and transferred out to the Packaging Process(e) Given that 30% of the unexpected losses were as a result of pilferage, calculate Fen Furnishings trueloss associated with the Polishing Process.

Name: DiscussionFen Furnishings produces brass handles for the furniture in
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: DiscussionFen Furnishings produces brass handles for the furniture industry in a four-stage process -Mixing, Moulding, Polishingand Packaging. Costs incurred in the Polishing Department during January are summarized as follows:WIP - Polishing Proces