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Furniture Inc. has two departments, Assembly and finishing. All materials are added at the beginning of the production process, while conversion costs are incurred evenly throughout the process. The inventory as of August 1 had a cost of $7,000. The Assembly Department has 3,600 tables in process at the beginning of August, and 2,100 at the end of August. Assembly transferred 5,500 tables to the Finishing department during the month. The inventory in process as of August 1 is 30% complete, and the inventory in process at the end of August is 40% complete. During August, Furniture Inc. allocated $11,975 of direct labor and $15,000 of direct materials to the Assembly Department. The company applied $3,800 of factory overhead to the Assembly Department. Step 1 1. Determine the number of tables started and completed during August. 2. Determine total units to assign costs. Step 2 3. Determine the direct materials equivalent units. 4. Determine the conversion equivalent units. Step 3- round to the nearest cent 5. Determine the direct materials cost per equivalent unit. 6. Determine the conversion cost per equivalent unit. Step 4 7. Determine the costs incurred in the assembly department to be allocated to ending inventory in process. 8. Determine goods completed and transferred to the finishing department. Cost of Production Report 9. Determine the "costs incurred during period" to be included in the cost of production report. Use rounded "per equivalent units" amounts from Step 3. Costs DM Conversion Total

Furniture Inc. has two departments, Assembly and finishing. All materials are added at the beginning of the production process, while conversion costs are incurred evenly throughout the process. The inventory as of August 1 had a cost of $7,000. The Assembly Department has 3,600 tables in process at the beginning of August, and 2,100 at the end of August. Assembly transferred 5,500 tables to the Finishing department during the month. The inventory in process as of August 1 is 30% complete, and the inventory in process at the end of August is 40% complete. During August, Furniture Inc. allocated $11,975 of direct labor and $15,000 of direct materials to the Assembly Department. The company applied $3,800 of factory overhead to the Assembly Department. Step 1 1. Determine the number of tables started and completed during August. 2. Determine total units to assign costs. Step 2 3. Determine the direct materials equivalent units. 4. Determine the conversion equivalent units. Step 3- round to the nearest cent 5. Determine the direct materials cost per equivalent unit. 6. Determine the conversion cost per equivalent unit. Step 4 7. Determine the costs incurred in the assembly department to be allocated to ending inventory in process. 8. Determine goods completed and transferred to the finishing department. Cost of Production Report 9. Determine the "costs incurred during period" to be included in the cost of production report. Use rounded "per equivalent units" amounts from Step 3. Costs DM Conversion Total

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter5: Process Cost Accounting—general Procedures
Section: Chapter Questions
Problem 19E
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Furniture Inc. has two departments, Assembly and finishing. All materials are added at the beginning of the production process, while conversion costs are incurred evenly throughout the process. The inventory as of August 1 had a cost of $7,000. The Assembly Department has 3,600 tables in process at the beginning of August, and 2,100 at the end of August. Assembly transferred 5,500 tables to the Finishing department during the month. The inventory in process as of August 1 is 30% complete, and the inventory in process at the end of August is 40% complete. During August, Furniture Inc. allocated $11,975 of direct labor and $15,000 of direct materials to the Assembly Department. The company applied $3,800 of factory overhead to the Assembly Department. Step 1 1. Determine the number of tables started and completed during August. 2. Determine total units to assign costs. Step 2 3. Determine the direct materials equivalent units. 4. Determine the conversion equivalent units. Step 3 - round to the nearest cent 5. Determine the direct materials cost per equivalent unit. 6. Determine the conversion cost per equivalent unit. Step 4 7. Determine the costs incurred in the assembly department to be allocated to ending inventory in process. 8. Determine goods completed and transferred to the finishing department. Cost of Production Report 9. Determine the "costs incurred during period" to be included in the cost of production report. Use rounded "per equivalent units" amounts from Step 3. Costs DM Conversion Total
Transcribed Image Text:Furniture Inc. has two departments, Assembly and finishing. All materials are added at the beginning of the production process, while conversion costs are incurred evenly throughout the process. The inventory as of August 1 had a cost of $7,000. The Assembly Department has 3,600 tables in process at the beginning of August, and 2,100 at the end of August. Assembly transferred 5,500 tables to the Finishing department during the month. The inventory in process as of August 1 is 30% complete, and the inventory in process at the end of August is 40% complete. During August, Furniture Inc. allocated $11,975 of direct labor and $15,000 of direct materials to the Assembly Department. The company applied $3,800 of factory overhead to the Assembly Department. Step 1 1. Determine the number of tables started and completed during August. 2. Determine total units to assign costs. Step 2 3. Determine the direct materials equivalent units. 4. Determine the conversion equivalent units. Step 3 - round to the nearest cent 5. Determine the direct materials cost per equivalent unit. 6. Determine the conversion cost per equivalent unit. Step 4 7. Determine the costs incurred in the assembly department to be allocated to ending inventory in process. 8. Determine goods completed and transferred to the finishing department. Cost of Production Report 9. Determine the "costs incurred during period" to be included in the cost of production report. Use rounded "per equivalent units" amounts from Step 3. Costs DM Conversion Total
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