Expert Answers

Expert Answers

1. Howard Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, three-fourths complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/3 complete. Cost information was as follows:

Cost of beginning work in process:                 

Cost in Crushing $21,640                 

Cost in Curing:                 

Materials 8,810                 

Labor 1,190                 

Factory overhead 2,420                 

Costs during the month:                 

Cost of goods received from Crushing $ 85,520                 

Cost in Curing:                 

Materials 53,830                 

Labor 10,690                 

Factory overhead 17,560                 

Total costs to be accounted for $201,660                 

a. Determine the unit cost for the month in Curing.                 

b. Determine the total cost of the products transferred to finished goods.                

c. Determine the total cost of the ending work in process inventory.     

2. Information for Chaucer, Ltd. in July for the Prep Department, the first stage of the production cycle, is as follows:


Materials Costs             

Beginning work in process $8,100 $6,200             

Costs added during July 23,400 13,400             

Total costs $31,500 $19,600             

Goods completed 60,000 units             

Ending work in process 15,000 units             

Material costs are added at the beginning of the process.             

The ending work in process is two-thirds complete as to conversion costs. How would the total costs accounted for be distributed using the average cost method?             

Powered by