1 answer

Units of production data for the two departments of Atlantic Cable and Wire Company for July...

Question:

Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are aCost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting

Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department Work in process, July 1 1,400 units, 55% completed 450 units, 20% completed Completed and transferred to next processing department during July 22,100 units 21,850 units Work in process, July 31 1,100 units, 65% completed 700 units, 35% completed Each department uses the Weighted average method. For each department, assume that direct materials are placed in process during production. a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. Whole units units Equivalent units of production units b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department. Whole units units Equivalent units of production units
Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms $194,400 Processing lost customer reservations 64,800 Rework incorrectly prepared room service meal 259,200 Employee training 129,600 Total $648,000 Sales are $3,600,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Cost of Quality Report Quality Cost Percent of Total Percent of Quality Cost Total Sales Quality Cost Classification Prevention Appraisal Internal failure % % % % % % External failure % % HA Total % %

Answers

a) Equivalent unit of drawing department

Direct material = 22100+(1100*65%) = 22815

Conversion = 22815

Equivalent unit of Welding department

Direct material = 21850+(700*35%) = 22095

Conversion = 22095

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