Part 2: Process Costing Intrepid Industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produ

[ad_1]

Part 2: Process Costing

Don't use plagiarized sources. Get Your Custom Essay on
Part 2: Process Costing Intrepid Industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produ
Just from $13/Page
Order Essay

Intrepid Industries manufactures sterile parts used in medical equipment. The company uses the weighted-average process costing method to account for production costs. It produces parts in three different departments: Forming, Sterilization, and Assembling. The following information was reported for the Assembling Department for the month of June:

Beginning work-in-progress inventory on June 1 had 250,000 units made up of the following:

Amount

Degree of Completion

Prior department costs transferred in from the Forming Department

$387,600

100%

Costs added by the Steril-ization Department:

Direct materials

317,200

100%

Direct labor

120,050

40%

Manufacturing overhead

67,100

30%

$504,350

Work in process, June 1

$891,950

During June, 580,000 units were transferred in from the Forming Department at a cost of $1,870,000. The Assembling Department added the following costs:

Assembling finished 480,000 units and transferred them to the Sterilization Department. At June 30, the number of units in ending work-in-progress inventory was 350,000. The degree of completion of work-in-process inventory at June 30 was as indicated below:

Prepare a correctly formatted (including heading) production cost report (seeExhibit 8.11 as a example report) using the weighted-average method.

Managementwantstolowerthecostsofmanufacturingtheparts.Ithasestablished the following per unit targets for this product in the Assembling Department: materials,$1.65; labor, $.62; and manufacturing overhead $0.48. Has the product achievedmanagement’s cost targets in the Assembling Department? Write a short report tomanagement containing your answer(s).

© PENN FOSTER, INC. 2017 COST ACCOUNTING PAGE 4Graded Project

Direct materials

$974,800

Direct labor

318,600

Manufacturing overhead

202,000

Total costs added

$1,495,400

Direct materials

80%

Direct labor

65

Manufacturing overhead

30

C. Prepare a correctly formatted (including heading) production cost report (seeExhibit 8.12 as a example report) using the FIFO method using the data given in Question A with one exception: the beginning direct materials costs as of June 1listed in work-in-process should be $315,700 instead of $317,200.

D. Using data from the FIFO report, write a short report to management addressingthe issues raised in Question B.



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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

Zero-plagiarism guarantee

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

Free-revision policy

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

Privacy policy

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

Fair-cooperation guarantee

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

Order your essay today and save 15% with the discount code BANANA