For the Month of November, Department B Completed and Transferred

question 78

Essay

For the month of November, Department B completed and transferred to the next department 5,000 units of product. Department B's ending work in process was 3,000 units that were 10 percent complete. The following cost information is available for the period:
Required:
(A) Determine the cost per equivalent whole unit for the month of November. (Round your answer to three decimal places.)(B) Determine the cost transferred out during the month.(C) Calculate the cost assigned to the ending work in process at the end of the month. (Round your answer to the nearest dollar.) $$\begin{array} { | l | r | } \hline \text { Cost transferred in } & \$ 35,000 \\\hline \text { Cost of beginning work in process } & 3,600 \\\hline \text { Direct materials } & 17,000 \\\hline \text { Direct labor } & 9,000 \\\hline \text { Manufacturing overhead } & 12,000 \\\hline\end{array}$$

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Definitions:

Net Realisable Value Method

An accounting technique used to value inventory or assets, determining the estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

By-product Revenue

Revenue generated from secondary products produced during the manufacturing process of a primary product.

Joint Process Costs

Costs incurred during a production process that yields multiple products simultaneously until the point of separation where products can be identified individually.

Make or Buy Decision

A decision-making process where a business evaluates the cost benefits of manufacturing a product in-house versus purchasing it from an external supplier.