2 Miller Outdoor Equipment MOE makes four models of tents Th

2 Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments Stitching and Customizing. All four models are processed initially in Stitching where all material is assembled and sewn into a basic tent. The Rookie model is then transferred to finished goods. After p transferred to Customizing for additional add-ons, and then transferred to finished goods There were no beginning work-in-process inventories on August 1. Data for August are shown in the following table. Ending work in process is 55 percent complete in Stitching and 20 percent complete in Customizing. Conversion costs are allocated based on the number of equivalent units processed in each department. rocessing in Stitching, the other three models are Total Rookie Novice Hiker Expert 240 Units stated Units completed in Stitching Materials Conversion costs: 760 710 410 35s 185 $64,380 $16.720 $22.230 $12,710 $12.720 530 510 Shitching $54,260 33.000 $87 260 Total conversion costs Required a. What is the unit cost of each model transferred to finished goods in August? (Round intermediate calculations to nearest whole number.) Rooke Novice Hiker Expert b. What is the balance of the Work-in-Process Inventory on August 31 for Stitching? For Customizing? (Round intermediate calculations to nearest whole number.) Sotching

Solution

Stiching Department Particulars Rockie Novice Hiker Expert Total Units Units Started 760 570 410 240 Units Completed in Stiching (A) 710 530 365 185 Units Work in Process (WIP) 50 40 45 55 Equivalent units (B) 27.5 22 24.75 30.25 (WIP Units x 55%) Total Units (A+B) = C 737.5 552 389.75 215.25 1894.5 Total cost 21122.59 15809.72 11162.75 6164.933 54260 (28.6408 x C) Stiching Costs 54260 Cost per Equivalent unit 28.6408 (54260 / 1894.5) Csutomizing Department Particulars Novice Hiker Expert Total Units Units Started 530 365 185 Units Completed in Customizing (A) 510 355 165 Units Work in Process (WIP) 20 10 20 Equivalent units (B) 4 2 4 (WIP Units x 55%) Total Units (A+B) = C 514 357 169 1040 Total costs 16309.62 11327.88 5362.5 33000 (C x 31.73) Customization costs 33000 Cost per Equivalent unit 31.73077 (33000 /1040) A. Unit cost of each model transferred to Finished goods Rockie Novice Hiker Expert Total Units Material Costs 16720 22230 12710 12720 64380 No OF units 760 570 410 240 Unit Cost 22 39 31 53 Stiching costs 28.6408 28.6408 28.6408 28.6408 Customization costs 31.73077 31.73077 31.73077 Total unit 50.6408 99.37157 91.37157 113.3716 B > Balance of WIP Inventory Rockie Novice Hiker Expert WIP At stiching Dept 50 40 45 55 WIP at Customizing Dept 20 10 20