Sunshine Manufacturing makes fabric covered hot boxes. The company began in August with 500 boxes in process that were 100% complete as to cardboard, 80% complete as to cloth and 60% complete as to conversion cost. During the month, 3,300 boxes were started. On August 31, 350 boxes were in process, which were 100% complete as to cardboard, 70% complete as to cloth and 50% complete as to conversion costs. The following are the cost reported: In process, beg, $6,500; during the production, Cardboard, $25,000; Cloth, $35,500; Direct labor, $12,000; Applied Factory Overhead, $2,800.

Sunshine Manufacturing makes fabric covered hot boxes. The company began in August with 500 boxes in process that were 100% complete as to cardboard, 80% complete as to cloth and 60% complete as to conversion cost. During the month, 3,300 boxes were started. On August 31, 350 boxes were in process, which were 100% complete as to cardboard, 70% complete as to cloth and 50% complete as to conversion costs. The following are the cost reported: In process, beg, $6,500; during the production, Cardboard, $25,000; Cloth, $35,500; Direct labor, $12,000; Applied Factory Overhead, $2,800.

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 5E: The Converting Department of Worley Company had 2,400 units in work in process at the beginning of...

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