90.2K

Verified Solution

Link Copied!

Page 1: 1 2 3 -- Question 3 (7 points) Diamond Inc. manufactures jewelry. The company has two departments, Assembly and Polishing. For the Polishing Department, material is added when the process is 80% complete. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Once assembly is complete, the jewelry pieces are immediately transferred to the Polishing Department. Once the polishing is complete, the final product is transferred to Finished Goods Inventory. Data for the Polishing Department is as follows: Equiv Units Ending Equiv Units Open WIP New Costs Transferred-In 200 60 $250 $15,050 Direct Materials 140 $500 $1,500 Conversion Costs 182 42 $1,250 $4,000 Actual units Ending Inventory 60 Units Transferred out 140 (6 marks) Provide calculations in good form for the costs per equivalent units and the total cost reconciliation for the department. (1 Mark) If Diamond Inc. makes use of individual WIP accounts for the Polishing Department - one each for Transferred-In (if applicable), Direct Materials, and Conversion Costs - provide the general journal entry to show transfer of completed items to Finished Goods Inventory. Paragraph B I U ENG 11:49 2021-0 Type here to search End Home POUR Pode u PrtSen FB F7 59 F6 F5 F4 F2 F3 % & 7 8

Answer & Explanation Solved by verified expert

See Answer