Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows:
WIP, beginning inventory 2/1/2020 51,000 units
Direct materials (100% complete)
Conversion costs (60% complete)
Started during February 170,500 units
Completed and transferred out 180,100 units
WIP, ending inventory 2/28/2020 26,600 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $280,300
Conversion costs 80,900
Direct materials added 408,200
Conversion costs added 264,200
Write thejournal entry that correctly represents the transfer of finished goods during February to the inventory using the FIFO method of process costing . (Round any cost per unit calculations to the nearest cent.)
WIP, beginning inventory 2/1/2020 51,000 units
Direct materials (100% complete)
Conversion costs (60% complete)
Started during February 170,500 units
Completed and transferred out 180,100 units
WIP, ending inventory 2/28/2020 26,600 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $280,300
Conversion costs 80,900
Direct materials added 408,200
Conversion costs added 264,200
Write the
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