NO Chart was provided. Spectre Chemicals produces Canovic in a two-department process. Information on the two departments...

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Accounting

NO Chart was provided.

Spectre Chemicals produces Canovic in a two-department process.Information on the two departments for March and April 2016 are asfollows:

MARCH 2016:

Department 1: The Company had beginninginventory of 6,000 units, 40% completed with a cost of $45,000.During the month, the department transferred in 22,000 units of thedirect materials with a cost of $10 per unit. Ending inventory was7,000 units, 30% completed. Direct labor is $310,500 and factoryoverhead is $103,500.

Department 2: The Company had beginninginventory of 5,000 units, 70% completed with a cost of $80,000.During the month, direct labor was $175,000 and factory overheadwas $87,500. Ending inventory was 10,000 units, 50% completed.

APRIL 2016:

Department 1: During the month, the departmenttransferred in 20,000 units of the direct materials with a cost of$11 per unit. Direct labor is $209,000 and factory overhead is$104,500. Ending inventory is 10,000 units 60% completed.

Department 2: During the month, direct labor is$175,000 and factory overhead is $87,500. The company had endinginventory of 5,000 units, 70% completed with a cost of $80,000.Required:

-Compute the Equivalent Units of Production, Material costs, andConversion costs for each department for March and April 2014.

-Complete the attached chart – one for each department and eachmonth.

-Prepare a cost of production report for March and April2014.

Answer & Explanation Solved by verified expert
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Solution Spectre Chemicals Department 1 For the month of March Computation of Equivalent unit FIFO Particulars Physical units Material Conversion Units to be accounted for Beginning WIP Inventory 6000 Units started this period 22000 Total unit to be accounted for 28000 Units Accounted for Units completed and transferred out From beginning inventory Material 0 Conversion 60 6000 0 3600 Started and completed currently 15000 15000 15000 Units in ending WIP Material 100 Conversion 30 7000 7000 2100 Total units accounted for 28000 22000 20700 Spectre Chemicals Department 1 For the month of March Computation of Cost per Equivalent unit Particulars Total cost Material Conversion Current period cost 63400000 22000000 41400000 Equivalent units 22000 20700 Cost per equivalent unit 1000 2000 Spectre Chemicals Department 1 For the month of March Producton cost report FIFO Particulars Total cost Material Conversion Cost Accounted for Cost assigned to unit transferred out Cost from beginning WIP Inventory 45000 Current cost added to complete beginning WIP Material 0 0 Conversion 3600 20 72000 72000 Total Cost from beginning inventory 117000 Current cost of unit started and completed Material 1500010 150000 150000    See Answer
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