Brite Ideas, Incorporated, mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July: Number of lamps in beginning work in process Lamps transferred to finished goods Number of lamps in ending work in process June 810 2,000 1,100 July 1,100 3,480 800 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process each month are finished in the following month. Required a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead.
Brite Ideas, Incorporated, mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July: Number of lamps in beginning work in process Lamps transferred to finished goods Number of lamps in ending work in process June 810 2,000 1,100 July 1,100 3,480 800 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process each month are finished in the following month. Required a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead. b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring materials, and labor and overhead.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...
Related questions
Question
None
Transcribed Image Text:Brite Ideas, Incorporated, mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of
the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly
throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for
the months of June and July:
Number of lamps in beginning work in process
Lamps transferred to finished goods
Number of lamps in ending work in process
June
810
2,000
1,100
July
1,100
3,480
800
In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were
only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work
in process each month are finished in the following month.
Required
a. For the month of June, calculate the equivalent units of production for the three major cost categories-body materials, wiring
materials, and labor and overhead.
b. For the month of July, calculate the equivalent units of production for the three major cost categories-body materials, wiring
materials, and labor and overhead.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning