Maxire Shoes Manufactures Shoes

question 117

Essay

Maxire Shoes manufactures shoes.All direct materials are included at the inception of the production process.For March,there were 2,800 units in beginning inventory with a direct material cost of $1,400.Direct materials totaled $35,000 for the month.Work-in-process records revealed that 70,000 units were started in March and that 60,000 were finished.Normal spoilage of 2% of units finished was incurred.Ending work-in-process units are complete in respect to direct materials costs.Spoilage is not detected until the process is complete.Endicott uses the weighted-average method.
Required:
a.What are the direct materials costs assigned to completed good units?
b.What are the direct material amounts allocated to the work-in-process ending inventory?

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Definitions:

Endodermal

Pertaining to the innermost layer of the three primary germ layers in the very early embryo, which gives rise to the digestive and respiratory systems among others.

Ectodermal

Pertaining to the ectoderm, the outermost layer of the embryo, giving rise to the nervous system, skin, and various sensory organs.

Germ Layers

The three primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all tissues and organs develop.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the skin and nervous system.