Answer the following questions using the information below: Samantha's Office Supplies manufactures desk...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Answer the following questions using the information below:
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 placed into production. After inspection, some units are spoiled due to nondetectible material defects. Spoiled units generally constitute 4% of the good units. Data provided for February 2012 are as follows:
WIP, beginning inventory 2/1/2012 50,000 units
Direct materials (100% complete)
Conversion costs (50% complete)
Started during February 164,000 units
Completed and transferred out 162,000 units
WIP, ending inventory 2/29/2012 30,000 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $ 300,000
Conversion costs 88,000
Direct materials added 419,832
Conversion costs added 219,786
Journal entries correctly represents the transfer of completed goods begun during February using the FIFO method of process costing?
Thanks
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
