Burlson Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and th
Posted: Sun Jul 03, 2022 3:48 pm
Burlson Company manufactures car seats in its Chicago plant.Each car seat passes through the assembly department and thetesting department. This problem focuses on the testing department.Direct materials are added when the testing department process is90% complete. Conversion costs are added evenly during thetesting department's process. As work in assemblyis completed, each unit is immediately transferred totesting. As each unit is completed in testing, it isimmediately transferred to Finished Goods.
Burleson Company uses the weighted-average method ofprocess costing. Data for the testing department for October 2020are as follows:
Physical Units
Transferred-In
Direct
Conversion
(Car Seats)
Costs
Materials
Costs
Work in process, October 1a
8,100
$2,936,000
$0
$1,021,110
Transferred in during October 2020
?
Completed during October 2020
30,300
Work in process, October 31b
4,300
Total costs added during October 2020
$9,450,800
$10,998,900
$4,641,590
aDegree of completion: transferred-in costs, ?%;direct materials, ?%; conversion costs, 80%.
bDegree of completion: transferred-in costs,?%; direct materials, ?%; conversion costs,
70%.
1.
What is the percentage of completion for transferred-incosts and direct materials in (a)beginning work-in-process inventory and (b)ending work-in-process inventory?
2.
For each cost category, compute equivalent units in thetesting department. Show physical units in the first column of yourschedule.
3.
2020,
4.
Prepare journal entries for October transfers from the assemblydepartment to the testing department and from the testingdepartment to Finished Goods.
Burleson Company uses the weighted-average method ofprocess costing. Data for the testing department for October 2020are as follows:
Physical Units
Transferred-In
Direct
Conversion
(Car Seats)
Costs
Materials
Costs
Work in process, October 1a
8,100
$2,936,000
$0
$1,021,110
Transferred in during October 2020
?
Completed during October 2020
30,300
Work in process, October 31b
4,300
Total costs added during October 2020
$9,450,800
$10,998,900
$4,641,590
aDegree of completion: transferred-in costs, ?%;direct materials, ?%; conversion costs, 80%.
bDegree of completion: transferred-in costs,?%; direct materials, ?%; conversion costs,
70%.
1.
What is the percentage of completion for transferred-incosts and direct materials in (a)beginning work-in-process inventory and (b)ending work-in-process inventory?
2.
For each cost category, compute equivalent units in thetesting department. Show physical units in the first column of yourschedule.
3.
2020,
4.
Prepare journal entries for October transfers from the assemblydepartment to the testing department and from the testingdepartment to Finished Goods.