question archive Campbell Ski Company manufactures snow skis
Campbell Ski Company manufactures snow skis
Subject:AccountingPrice:2.86 Bought3
Campbell Ski Company manufactures snow skis. During the most recent accounting period, the company's finishing department transferred 4,000 sets of skis to finished goods. At the end of the accounting period, 420 sets of skis were estimated to be 40 percent complete. Total product costs for the finishing department amounted to $312,600.
Required
a. Determine the cost per equivalent.
b. Determine the cost of the goods transferred out of the finishing department.
c. Determine the cost of the finishing department's ending work in process inventory.
A. Cost per equivalent unit
B. Allocation to finished goods
C. Allocation to ending inventory
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a)
equivalent units = units transferred + ending units*% complete
equivalent units = 4,000 + 420*40%
equivalent units = 4168
cost per equivalent = Total product costs/equivalent units = 312,600/4,168 = $75
b)
cost of the goods transferred out of the finishing department = units transferred* cost per equivalent
cost of the goods transferred out of the finishing department = 4,000*75
cost of the goods transferred out of the finishing department = $300,000
c)
cost of the finishing department's ending work in process inventory = ending units*% complete* cost per equivalent
cost of the finishing department's ending work in process inventory = 420*40%*75
cost of the finishing department's ending work in process inventory = $12,600
