Seempleylungs Company operates three producing departments - Cutting, Sewing and Finishing. In November, the Sewing department transferred 6,200 units to Finishing and had 400 units in process at the end of the month. The Sewing department work in process inventory as of October 31 were 1,200 units. These units were one-fourth incomplete as of that date, with a cost of P13,312. Out of this total amount, 40% was materials cost, while the cost of labor was 1/3 of conversion cost. The units started in the Sewing department during November were received from the preceding department at a cost of P47,595.60. For the same month, the sewing department incurred P11,772 for materials, P15,660 for labor and P2,268 for overhead. As of the end of the month, the department has done one quarter of the work required to complete the units in process. Compute for the cost of units transferred to the Finishing department.

Seempleylungs Company operates three producing departments - Cutting, Sewing and Finishing. In November, the Sewing department transferred 6,200 units to Finishing and had 400 units in process at the end of the month. The Sewing department work in process inventory as of October 31 were 1,200 units. These units were one-fourth incomplete as of that date, with a cost of P13,312. Out of this total amount, 40% was materials cost, while the cost of labor was 1/3 of conversion cost. The units started in the Sewing department during November were received from the preceding department at a cost of P47,595.60. For the same month, the sewing department incurred P11,772 for materials, P15,660 for labor and P2,268 for overhead. As of the end of the month, the department has done one quarter of the work required to complete the units in process. Compute for the cost of units transferred to the Finishing department.

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...

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During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.
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