Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $ 5. During May, 600 valves were drawn from the supply room and installed in water pumps in the production process. Eighty percent of these units were completed and transferred into finished goods warehouses. Of the units completed, thirty percent were still unsold at the end of the month. There were no beginning inventories. 52.The cost of valves in cost of goods sold for May would be: a. $1,680 b. $2,100 c.$900 d. $72

Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $ 5. During May, 600 valves were drawn from the supply room and installed in water pumps in the production process. Eighty percent of these units were completed and transferred into finished goods warehouses. Of the units completed, thirty percent were still unsold at the end of the month. There were no beginning inventories. 52.The cost of valves in cost of goods sold for May would be: a. $1,680 b. $2,100 c.$900 d. $72

Name: Servix, Inc., produces water pumps. Each water pump contains a small v
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Description: Servix, Inc., produces water pumps. Each water pump contains a small valve that costs $ 5. DuringMay, 600 valves were drawn from the supply room and installed in water pumps in the productionprocess. Eighty percent of these units were completed and t

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 16E: Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels...

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Dalton Quilting Company makes blankets that it markets through a variety of department stores. It makes the blankets in batches of 1,400 units. Dalton made 24,000 blankets during the prior accounting period. The cost of producing the blankets is summarized here. Materials cost ($10 per unit x 24,000) Labor cost ($9 per unit x 24,000) Manufacturing supplies ($1.50 × 24,000) Batch-level costs (20 batches at $4,200 per batch) Product-level costs. Facility-level costs Total costs Cost per unit = $846,000 ÷ 24,000 = $35.25 $ 240,000 216,000 36,000 84,000 96,000 174,000 $ 846,000 Required a. Sunny Motels has offered to buy a batch of 700 blankets for $25 each. Dalton's normal selling price is $46 per unit. Calculate the relevant cost per unit for the special order. Based on the preceding quantitative data, should Dalton accept the special order? a. Cost per unit a. Should Dalton accept the special order? b. Cost per unit b. Should Dalton accept the special order? b. Sunny offered to buy a…
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Farmers Plus uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock8,000 kilos of material at $43.08 per kilo entered the processDirect materials added$29,000Direct wages incurred22,700Production overhead55,100Normal loss is 4% of inputA quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company’s policy to credit the process account with the scrap value of the normal loss units.Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input…
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In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 450 towels were in process and were 60 percent complete. The costs incurred were $160. During the month, costs of $15,600 were incurred, 3,900 towels were started, and 225 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete. Required: a. Prepare a production cost report: the company uses FIFO process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.