ACCT 221 help A Guide to career/Snaptutorial ACCT 221 help A Guide to career/Snaptutorial | Page 10

fully complete as to materials and 80 per cent complete as to
conversion.
The beginning inventory cost $288,000 consisted of $216,000 of costs
transferred in from the molding department conversion costs
(conversion costs are direct labor and overhead). The costs incurred in
the finishing department for July appear as follows:
Costs transferred from molding department $720,000 (excluding costs
in beginning inventory)
Costs added in finishing department in July:
(Excluding costs in beginning inventory): $63,600
Materials 131,376
Conversion costs $914,976
The finishing department received 120,000 units from the molding
department in July. During July, 127,200 units were completed by the
finishing department and transferred out. As of July 31, 28,800 units,
complete as to materials and 60% complete as to conversion, were left
in inventory of the finishing department.
a. Using the average cost procedure, prepare a production cost report
for the finishing department for July.
b. Compute the average unit cost for conversion in the finishing
department in June.
Question 2
In 2013, Adam opened Adam's Pets, a small retail shop selling pet
supplies.
On December 31, 2013, the accounting records of Adam's Pets
showed the following:
Inventory on Dec 31, 2013 $20,400
Inventory on Jan 1, 2013 30,200
Sales Revenue 114,000
Utilities Expense for the shop 7,800
Rent for the shop 8,200
Sales Commissions 4,300