Business, 23.09.2021 02:30, santosbeti90
Assume that on January 31 the Finishing Department of Corner Suites had 5,000 partially trimmed and assembled executive desks in ending inventory. These units were, of course, 100 percent complete with respect to components transferred in from the Cutting Department, but only 80 percent complete with respect to direct trim materials, and 75 percent complete with respect to conversion. During January, the Finishing Department incurred direct materials costs (for trim) of $220,000, and conversion costs of $322,500
a. Compute how many units were started in the Finishing Department during January.
b. Compute the number of executive desks transferred out of the Finishing Department in January.
c. Compute the equivalent units of input resources for the Finishing Department in January.
d. Compute the cost per equivalent unit of input resource for the Finishing Department in January.
e. Prepare the summary journal entry required to transfer the cost of executive desks from the Finishing Department’s Work in Process Inventory to the company’s Finished Goods Inventory in January.
f. Compute the total cost assigned to the Finishing Department’s ending inventory in process on January 31.
Answers: 3
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Assume that on January 31 the Finishing Department of Corner Suites had 5,000 partially trimmed and...
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