PART B. Problems

1.              TheCINEDivision of OMAR Sports EquipmentCompanymanufactures baseball gloves in its Milwaukeeplant.  Two production departments are used in sequence:the Cutting Department and the Stitching Department.  Inthe Cutting Department, direct material consisting of imitationleather is placed into production at the beginning of theprocess.  Direct-labor and manufacturing overhead costsare incurred uniformly throughout the process.  Thematerial is rolled to make it softer and then cut into the piecesneeded to produce baseball gloves.

                  Belowis presented a summary of the activity and costs in the CuttingDepartment during March.  The direct-material andconversion costs listed below for the March 1 work in processconsist of costs that were incurred duringFebruary.  These costs were assigned to the unitsremaining in process at the end of February.  

              

INFORMATION

Work in process, March 1	25,000 units
Direct material: 100% complete, cost of	$143,000
Conversion: 40% complete, cost of	474,700
Balance in work in process, March 1	$617,700
Units started during March	30,000 units
Units completed during March and transferred out of the CuttingDepartment	35,000 units
Work in process, March 31
Direct Material: 100% complete
Conversion: 80% complete
Costs incurred during March:
Direct material	$165,000
Conversion costs:
Direct labor	$1,000,000
Applied manufacturing overhead	1,174,000
Total conversion costs	$2,174,000

Required: Weighted Average and FIFO methods

Prepare a physical flow schedule for the month of March.

Calculate equivalent units formaterials  AND  equivalent units forconversion.

Calculate cost per equivalent unit for materials AND cost perequivalent unit for conversion.

Calculate the value of work in process inventory on March 31 andcost of goods transferred out during March.