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nomue27 · Dec 8, 2009, 04:03 PM

This is the question:

During February, the Assembly Dept. received 60,000 units from cutting Dept. at a unit cost $3.54. Cost added in the Assembly Dept. were: Materials $41,650, labor $101700, factory overhead $56,500, there was no beginning inventory. Of the 60,000 uits received, 50,000 were transferred out, 9000 units were in process at the end of the month (all materials,2/3 converted, the lost units were 1/2 complete as to materials and conversion cost. The entire loss is consider abnormal and is to be charged to factory overhead).

My attempt to solve this problem yielded a "total cost to be accounted for" of $259,850 and the "total cost accounted for" was $91,470.

rehmanvohra · Dec 8, 2009, 11:00 PM

It would have helped if you were to post as to how did you arrive at the figures of $259,850 and $91,470.

The total costs to be accounted for will be the cost of materials transferred from the preceding department as weel as the costs added in the current department.

The costs accounted for will comprise the cost of goods transferred out, the amount transferred to factory overheads and the value of work in process and that figure should be the same as the total costs to be accounted for.