CONNECTICUT COMPANY manufactares a product called Glob It ma

CONNECTICUT COMPANY manufactares a product called \"Glob\". It makes Glob in one department and uses a process costing system for tracking and assigning of product costs, Glob is a liquid that has no particular purpose-Ijust made it up for this problem. They use a big machine called a Glob-0-Tron. The manufacture of Glob requires one Here\'s how it worky raw material, Gunk. It is made by the vat. Basically, Gunk is slowly poured in and, sinultanocously, while it is being poured, the Glob-O-Tron starts to spin. This happens for exactly 20 hours. Al the 20-hour mark, the last of Gunk is poured in, and the Glob-0-Tron of the materials Tron stops spinning and the Glob is completed. In other words, all and conversion are done simultancously and at the exact same rate (we call this uniform inputs). At the beginning of Janvaary 2016, there was no work in process. During the period, the company started production of 85,000 lbs. of Glob·Production costs for the moth (materials and conversion costs) taled $160,024. There was no ending inventory either. All the Gilob produced was finished. In all computations, round your interim calculations to FOUR decimal places AND use these rounded numbers in ALL subsequent computations. Round your final answers to the NEAREST DOLLAR . How many physieal pounds of Glob were actually completed? 2. What was the manufacturing cost per Ih. (that is, per unit) of Glob? 3. What was the Cost of Goods Manufactured for January? What was the dollar value of the ending work in process at January 31? Case Two Same as case one, except, they dida\'t finish all the Glob they started. There were 12,000 lhs of Glob still in proess at the end of January. This unfinished Glob was 70% omplete at that pint Questions 1. How many physical pounds of Glob were actually completed? 2. How many whole lhs worth of Glob were produced during January? (eguivalent anit) 3. NOW what was the manufacturing oosl per lh. (the oost per unit) of Glob? 4. What was the Cost of Goods Manufactured for January? What was the dellar value of the ending work in process at January 31? Same as case two, except, now, instead of having NO work in process at the beginning of Jansary (the end of December 2011), they actually had 20,000 poands which were still in peocess and wore, in fact, 25% complete (In other woeds, they started with 20,000 and started 85,000 new Ibs. as per above). Manofacturing costsn these 20,000 Ibs. of beginning work in process totalod $42,776. Remember, these oosts were incurred in December, not the eurrent month ($160,024 is still incurred in the current Qucstions 1. How many physical pounds of Glob were actually a. How many of these were from beginning WIPr b. How many were actually started AND completed in the curent period? 2. How many whole lbs. wonth of Glob were prodaced during January (eqwivalent wnits) 3.NOW\' what was the manufacturing oost per lh (the cost per unit) of Glob? 4. What was the Cost of Goods Manufactured for January? What was the dollar value of the ending work in process at January 31? Cass Fear For these throe Gunk was being mixed. What if this was vat at the beginning, and TIEN it was cases, we assamed that the Gunk was put in evenly all throughout the 20-hour period where the NOT the case? What if, innlend, all of the Gunk was dumped into the a mixed for 20 hours? Would that change your answers above? WHY o

Solution

Case one:

1. The physical pounds of glob actually completed were 85000

2. The manuafacturing cost per lb is 1.8826

3. The cost of goods manufactured is 160024. The work in progress at the end is nil

Case 2

1. The physical pounds of glob completed are 73000

2. The equivalent glob Completed is 81400

3. The manufacturing cost per lb is 1.9659 (160024/81400)

4. The cost of goods manufactured was 160024. The value of closing wip is 16513

Case 3

1. The total physical units completed were 93000 ( 20000+85000-12000)

A. All of the 20000 were from beginning

B. The actual started and completed were 73000

2. The equivalent worth of lbs produced were 116400

3. The cost per unit was 1.37477

4. The cost of goods manufactured were 160024. The ending dollar value was 11548