Bridges Industries manufactures wood furniture.In the Lamination Department,varnish is added when the goods are 60 percent complete as to overhead.The units that are spoiled during processing are found upon inspection at the end of production.Spoilage is considered discrete.

Production Data for Current Month

Beginning inventory (80% complete as to labor, 70% complete as to overhead) 1,000units

Transferred in during month 7,450units

Ending inventory (40% complete as to labor, 20% complete as to overhead) 1,500units

Normal spoilage (found during final quality inspection) 100units

Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs 200units

All other units were transferred to finished goods

Cost Data for Current Month

Beginning work in process inventory:

Prior department costs $7,510

Varnish 950

Direct labor 2,194

Overhead 5,522 $ 16,176

Current period costs:

Prior department costs $68,540

Varnish 7,015

Direct labor 23,000

Overhead 56,782 155,337

Total costs to account for $171,513

Required:Determine the proper disposition of the current month costs for the Laminating Department using the weighted average method.

Question

Bridges Industries manufactures wood furniture.In the Lamination Department,varnish is added when the goods are 60 percent complete as to overhead.The units that are spoiled during processing are found upon inspection at the end of production.Spoilage is considered discrete.

Production Data for Current Month
Beginning inventory (80% complete as to labor, 70% complete as to overhead)	1,000units
Transferred in during month	7,450units
Ending inventory (40% complete as to labor, 20% complete as to overhead)	1,500units
Normal spoilage (found during final quality inspection)	100units
Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs	200units

All other units were transferred to finished goods

Cost Data for Current Month
Beginning work in process inventory:
	Prior department costs	$7,510
	Varnish	950
	Direct labor	2,194
	Overhead	5,522	$ 16,176
Current period costs:
	Prior department costs	$68,540
	Varnish	7,015
	Direct labor	23,000
	Overhead	56,782	155,337
Total costs to account for		$171,513

Required:Determine the proper disposition of the current month costs for the Laminating Department using the weighted average method.

Quizplus · Accepted Answer

The Answer of Bridges Industries manufactures wood furniture.In the Lamination Department,varnish is added when the goods are 60 percent complete as to overhead.The units that are spoiled during processing are found upon inspection at the end of production.Spoilage is considered discrete.

Production Data for Current Month
Beginning inventory (80% complete as to labor, 70% complete as to overhead)	1,000units
Transferred in during month	7,450units
Ending inventory (40% complete as to labor, 20% complete as to overhead)	1,500units
Normal spoilage (found during final quality inspection)	100units
Abnormal spoilage-found at 30% completion of direct labor and 15% of conversion; the sanding machine was misaligned and scarred the chairs	200units

All other units were transferred to finished goods

Cost Data for Current Month
Beginning work in process inventory:
	Prior department costs	$7,510
	Varnish	950
	Direct labor	2,194
	Overhead	5,522	$ 16,176
Current period costs:
	Prior department costs	$68,540
	Varnish	7,015
	Direct labor	23,000
	Overhead	56,782	155,337
Total costs to account for		$171,513

Required:Determine the proper disposition of the current month costs for the Laminating Department using the weighted average method.

Bridges Industries Manufactures Wood Furniture