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Transferred-in costs, weighted-average method. Spelling Sports, which produces basketballs, has two departments: cutting and stitching. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the stitching department.
Basketballs that have undergone the cutting process are immediately transferred to the stitching department. Direct material is added when the stitching process is 70% complete. Conversion costs are added evenly during stitching operations. When those operations are done, the basketballs are immediately transferred to Finished Goods.
Spelling Sports uses the weighted-average method of
- 1. Summarize total stitching department costs for March 2017, and assign these costs to units completed (and transferred out) and to units in ending work in process.
Required
- 2. Prepare
journal entries for March transfers from the cutting department to the stitching department and from the stitching department to Finished Goods.
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EBK HORNGREN'S COST ACCOUNTING
- Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion materials are added at the costs). Direct beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. Data for the assembly department for October 2019 are as follows: Physical Units (Car Seats) Direct Materials Conversion Costs Work in process, October 1ª 4,000 $1,248,000 $ 241,650 Started during October 2019 22,500 Completed during October 2019 26,000 Work in process, October 31b 500 Total costs added during October $4,635,000 $2,575,125…arrow_forwardUse the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s production activities are Kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute It allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. Assume that each desktop computer requires 125 parts and has a volume of 2 cubic feet. Compute It contracts with its suppliers to pre-kit certain component parts before delivering them to Compute It. Assume this saves $210,000 of the kitting cost and reduces the total number of parts by 100,000 (because Compute It considers each…arrow_forwardUse the following information for questions 2-4. Compute It uses activity-based costing. Two of Compute It’s production activities are kitting(assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute It spends $960,000 per month on kitting and $32,000 per month on boxing. Compute it allocates the following: • Kitting costs based on the number of parts used in the computer • Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000 parts per month and ship products with a total volume of 6,400 cubic feet per month. What are the predetermined overhead allocation rates?arrow_forward
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