Assessment
Part 1: Computing Unit Cost for Department and For Completed Units with Beginning Inventory
Central Manufacturing has two production departments. Finishing had 2,000 units in process at the beginning of the period, three-fifths complete. During the period, 14,000 units were received from assembly, 13,000 units were transferred to the finished goods storeroom, and 3,000 units were in process at the end of the period, two-thirds complete. The cost of the beginning work in process was:
|
Cost in assembly
|
$ 12,000
|
|
|
Cost in finishing:
|
|
|
|
Materials
|
600
|
700
|
|
Labor
|
1,500
|
1800
|
|
Factory overhead
|
900
|
1000
|
|
Costs During the Month
|
|
|
|
Cost of goods received from assembly
|
$ 84,000
|
|
|
Cost in finishing:
|
|
|
|
Materials
|
4,800
|
5500
|
|
Labor
|
15,000
|
17500
|
|
Factory overhead
|
9,600
|
10000
|
Considering this information, determine (a) the unit cost for the month in finishing, (b) the total cost of the products transferred to finished goods, (c) the total cost of the ending work-in-process inventory.
Unit Cost for the Month in Finishing
|
Cost Element
|
Beginning Work-in-Process
|
Cost for Month
|
Total
|
Unit Output
|
Unit Cost
|
|
Materials
|
|
|
|
|
|
|
Labor
|
|
|
|
|
|
|
Factory overhead
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Units completed and transferred
3,000 units in process, 2/3 completed
Unit output for the month
Total Cost of Products Transferred to Finished Goods
|
Cost Element
|
Cost
|
|
Cost in assembly
|
|
|
Cost in finishing
|
|
|
Cost of goods transferred to finished goods
|
|
Total Cost of Ending Work-in-Process Inventory
|
Cost Element
|
Cost
|
|
Cost in assembly
|
|
|
Cost in finishing:
|
|
|
Materials
|
|
|
Labor
|
|
|
Factory Overhead
|
|
|
Cost of ending work-in-process inventory
|
|