FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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a. What is the unit cost of each model transferred to finished goods in February?
b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing?
Complete this question by entering your answers in the tabs below.
Required A Required B
What is the unit cost of each model transferred to finished goods in February?
Product
Unit Cost
DI-1400
DI-3800
DI-5000
DI-8000
Required A
What is the unit cost of each model transferred to finished goods in February?
What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing?
Complete this question by entering your answers in the tabs below.
Fabrication
Detailing
Required B >
Required A
What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing?
Work-in-Process
Inventory
Required B
<Required A
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Transcribed Image Text:a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. Required A Required B What is the unit cost of each model transferred to finished goods in February? Product Unit Cost DI-1400 DI-3800 DI-5000 DI-8000 Required A What is the unit cost of each model transferred to finished goods in February? What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Complete this question by entering your answers in the tabs below. Fabrication Detailing Required B > Required A What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? Work-in-Process Inventory Required B <Required A
Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI-
8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in
Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After
processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added)
and then transferred to finished goods.
There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work
in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the
number of equivalent units processed in each department.
Units started
Units completed in Fabrication
Units completed in Detailing
Materials
Conversion costs:
Fabrication
Detailing
Total conversion costs
Total
$ 5,605,200
$ 1,808, 100
1,298,925
$ 3,107,025
DI-1400
820
770
DI-3800
470
445
420
$ 557,600 $1,244,600 $ 1,974,000
DI-5000
635
610
585
Required:
a. What is the unit cost of each model transferred to finished goods in February?
b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing?
DI-8000
295
245
220
$1,829,000
expand button
Transcribed Image Text:Drew Implements makes four models of utility and light construction tractors. The model names are DI-1400, DI-3800, DI-5000, and DI- 8000. Drew manufactures the tractors in two departments-Fabrication and Detailing. All four models are processed initially in Fabrication, where all material is assembled into the basic tractor. The DI-1400 model is then transferred to finished goods. After processing in Fabrication, the other three models are transferred to Detailing for additional work (though no new materials are added) and then transferred to finished goods. There were no beginning work-in-process inventories on February 1. Data for February are shown in the following table. Ending work in process is 90 percent complete in Fabrication and 40 percent complete in Detailing. Conversion costs are allocated based on the number of equivalent units processed in each department. Units started Units completed in Fabrication Units completed in Detailing Materials Conversion costs: Fabrication Detailing Total conversion costs Total $ 5,605,200 $ 1,808, 100 1,298,925 $ 3,107,025 DI-1400 820 770 DI-3800 470 445 420 $ 557,600 $1,244,600 $ 1,974,000 DI-5000 635 610 585 Required: a. What is the unit cost of each model transferred to finished goods in February? b. What is the balance of the Work-in-Process Inventory on February 28 for Fabrication? For Detailing? DI-8000 295 245 220 $1,829,000
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