gambler company produces a product by way of three consecutive processes. the following data relates to Process 3 for the month of April. During April, 30,000 units valued at $29.55 each were transferred from Process 2 to Process 3. Other costs incurred d
gambler company produces a product by way of three consecutive processes. the following data relates to Process 3 for the month of April.
During April, 30,000 units valued at $29.55 each were transferred from Process 2 to Process 3.
Other costs incurred during the month were:
Direct Materials added $309,000
Direct Labour $458,600
Manufacturing Overhead $391,400
Normal losses are estimated to be 5% of the units transferred in from Process 2. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $40 each.
At inspection, 4,000 units were rejected as scrap. These units had reached the following degree of completion:
Transfer from Process 2 100%
Direct material added 80%
Conversion costs 60%
Work-in-progress at the end of April was 5000 units and had reached the following degree of completion:
Transfer from Process 100%
Materials added 55%
Conversion costs 50%
There were no incomplete units in Process 3 at the beginning of the period.
Materials added and conversion costs are incurred evenly throughout the process.
a) Complete the template given to determine the equivalent units for direct materials (From Process 2 & Materials added) and conversion costs.
The total cost of the units completed and transferred out
Cost of the unexpected losses
Cost of ending work in process inventory in Process 3
d) Prepare the Work in Process Inventory-Process 3 T-account, claerly showing the ending balance.
e) State the journal entries to record the assignment of direct materials, and direct labour, the allocation of manufacturing overhead to the process and to record the cost of the units completed and transferred out to Finished Goods.
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more