PART 2All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing,Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January aresummarized as follows:WIP - Polishing Process A/C$ 0January 1 Bal.Transfer from Moulding20,000 1,310,000391,600Direct Materials AddedDirect Labour638,000Manufacturing Overhead307,400Normal losses are estimated to be 2%% of input during the period. Inspection takes place during theprocessing operation, at which point damaged handles are separated from good handles and sold as scrapto local furniture manufacturers at $85 each.At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree ofcompletion: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 ofcompletion:Transfer from Moulding100%Direct material added80%Conversion costs50%Direct materials added and conversion costs are incurred uniformly throughout the process.Required:(a)Prepare a statement of equivalent production to determine the equivalent units for direct materials(From Moulding & Direct Material Added), and conversion costs and the cost per equivalent unit fordirect materials and conversion costs.(b)Calculate the:Total cost of units completed and transferred to the Packaging Department- Cost of the unexpected lossesCost of ending work-in-process inventory in the Polishing Department(c)Complete All Things Brass Work-In-Process Inventory - Polishing Process T-account, clearly showing theending balance.(d)Prepare the journal entries for the:assignment of direct materials, direct labour incurred, and the manufacturing overhead applied tothe Polishing Processcost of the units completed and transferred out to the Packaging Process(e)Given that 30% of the unexpected losses were because of pilferage, prepare the abnormal spoilagestatement, clearly showing All Things Brass true loss associated with the Polishing Process.

Name: PART 2All Things Brass produces brass handles for the furniture indus
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Description: PART 2All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing,Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January aresummarized as follows:WIP - Polishing Process A/

1.) Statement of Equivalent Production Input output Input cost Direct Material Added Conversion…

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Accounting

PART 2 All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing, Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January are summarized as follows: WIP - Polishing Process A/C $ 0 January 1 Bal. Transfer from Moulding Direct Materials Added 20,000 1,310,000 391,600 638,000 307,400 Direct Labour Manufacturing Overhead Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the processing operation, at which point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each

PART 2 All Things Brass produces brass handles for the furniture industry in a four-stage process -Mixing, Moulding, Polishing and Packaging. Costs incurred in the Polishing Department during January are summarized as follows: WIP - Polishing Process A/C $ 0 January 1 Bal. Transfer from Moulding Direct Materials Added 20,000 1,310,000 391,600 638,000 307,400 Direct Labour Manufacturing Overhead Normal losses are estimated to be 2%% of input during the period. Inspection takes place during the processing operation, at which point damaged handles are separated from good handles and sold as scrap to local furniture manufacturers at $85 each

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEB: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and...

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