Answered: Job #2365 incurred the following during…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 3CMA: Kimbeth Manufacturing uses a process cost system to manufacture dust density sensors for the mining...

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Job #2365 incurred the following during production:
Direct Materials:
$25,000
Manufacturing Labor:
45 hrs.
Packaging materials:
$1,000
Packing and shipping labor:
5 hrs.
The following data is also available for the company:
Overhead costs for the period
$3,000
Indirect Labor (machine maintenance)
20 hrs.
The company incurs costs at the following rates:
Manufacturing labor:
$20/hr.
Auxiliary labor (maintenance, packaging, etc.)
$15/hr.
Overhead allocation
$3 per dollar of manufacturing labor
Given this information, what was the total cost of the job that was transferred from Work in Process Inventory to the
Finished Goods Inventory?

Transcribed Image Text:Dante Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The company has two sequential production departments, Extrusion and Weaving. The following data relates to production for both departments for its Rayon carpet brand for the month of January. Note that since carpet is sold by the square yard, each “unit" refers to a square yard of carpet: Extrusion department: Beginning Work in Process Inventory: 300 units, 40% complete with respect to conversion Ending Work in Process Inventory: 250 units, 20% complete with respect to conversion Weaving department: Beginning Work in Process Inventory: 200 units, 30% complete with respect to conversion Ending Work in Process Inventory: 400 units, 35% complete with respect to conversion All direct materials are added at the beginning of the extrusion process, and conversion costs are assumed to be incurred uniformly. No new materials are added in the weaving process-just additional conversion costs. In the Extrusion Department, the cost of direct materials in beginning Work in Process Inventory was $15,250, and the conversion costs in beginning Work in Process were $11,000. During January, $188,875 of direct materials and $83,350 of conversion costs were added in the Extrusion Department. Over the course of the month, 5,500 units were completed and tra sferred out to the Weaving Department. In the Weaving Department, the beginning Work in Process Inventory account included transferred-in costs of $13,350 and conversion costs of $4,200 on January 1. Additional conversion costs added during January were $18,648. NOTE: Round all per-unit costs (based on equivalent units) to the nearest penny. How many units were started in the Extrusion Department during January?

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