Question 3 Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock 5,000 kilos of material at s43.08 per kilo entered the Direct materials added Direct wages incurred Production overhead Normal loss is 4% of input process $92,000 65.700 75,100 A quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.0o each, and it is company's policy to credit the process account with the scrap value of the normal loss units. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input material Direct material added |Conversion costs 100% 75% 50% Required: i) Compute the number of equivalent units of work performed by the Molding Department during the period and the cost per equivalent unit for direct materials and conversion costs. ii) Assign total cost to: a. Units completed and transferred out to the Drying Department b. Units rejected as abnormal spoilage c. Units in the Molding department work in process inventory. iii) Prepare the journal entries to record the assignment of direct materials, direct wages and the allocation of manufacturing overhead to the Molding Department Account, as well as, the cost of the units completed and transferred out to the Drying Department. iv) Post the journal entries to the Work in Process Inventory - Molding Department T- account.
Question 3 Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock 5,000 kilos of material at s43.08 per kilo entered the Direct materials added Direct wages incurred Production overhead Normal loss is 4% of input process $92,000 65.700 75,100 A quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.0o each, and it is company's policy to credit the process account with the scrap value of the normal loss units. Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input material Direct material added |Conversion costs 100% 75% 50% Required: i) Compute the number of equivalent units of work performed by the Molding Department during the period and the cost per equivalent unit for direct materials and conversion costs. ii) Assign total cost to: a. Units completed and transferred out to the Drying Department b. Units rejected as abnormal spoilage c. Units in the Molding department work in process inventory. iii) Prepare the journal entries to record the assignment of direct materials, direct wages and the allocation of manufacturing overhead to the Molding Department Account, as well as, the cost of the units completed and transferred out to the Drying Department. iv) Post the journal entries to the Work in Process Inventory - Molding Department T- account.
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
Chapter5: Activity-based Costing And Management
Section: Chapter Questions
Problem 44E: Use the following information for Exercises 5-44 through 5-46: The following six situations at...
Related questions
Question
Answer questions with working notes
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning