Treated Lumber Company Specializes in Processing Treated Wood

question 154

Essay

Treated Lumber Company specializes in processing treated wood.All direct materials are included at the inception of the sawing process and conversion is applied at the end of the process.For December there was no beginning inventory in the sawmill.Direct materials totalled $399,750 for the month and conversion costs totalled $165,000.work-in-process records revealed that 75,000 boardmetres were started in December and that 55,000 boardmetres were completed.Ending work-in-process units are complete only in respect to direct materials costs.Required:
a.What is the total manufacturing cost per equivalent unit (boardmetres)for December?
b.What are the costs assigned to completed boardmetres in December?
c.What are the costs transferred out during December?
d.What are the amounts assigned to December's ending work-in-process inventory?

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Definitions:

Financing Activities

Transactions related to raising capital, repaying investors, and restructuring the financial basis of the entity in the statement of cash flows.

Treasury Stock

Stock that a corporation has once issued and then reacquires.

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves, usually in the form of cash.

Noncash Investing

Investment activities that do not involve cash transactions, often including the acquisition of physical assets, securities, or other investments through non-cash exchanges.