Case 4-20 second department – durall company manufactures a plastic

CASE 4-20 Second Department—Weighted-Average Method [LO2, LO3, LO4]

 

 

Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company’s accountant (who is very inexperienced) has prepared a summary of production and costs for the Forming Department for October as follows:

 

Forming Department costs:

Work in process inventory, October 1, 8,000 units:

materials 100% complete; conversion 7⁄8 complete . . . . . . . .                                    $ 22,420*

Costs transferred in from the Mixing Department . . . . . . . . . . .                                     81,480

Material added during October (added when processing

                       is 50% complete in the Forming Department) . . . . . . . . . . . .                  27,600

Conversion costs added during October . . . . . . . . . . . . . . . . . .                                      96,900

Total departmental costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  $228,400

Forming Department costs assigned to:

Units completed and transferred to the Stamping

                        Department, 100,000 units at $2.284 each . . . . . . . . . . . . . .              $228,400

Work in process inventory, October 31, 5,000 units:

                      conversion 2⁄5 complete . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        —

Total departmental costs assigned . . . . . . . . . . . . . . . . . . . . . . . .                                $228,400

*Consists of cost transferred in, $8,820; materials cost, $3,400; and conversion costs, $10,200.

 

 

After mulling over the data above, Durall’s president commented, “I can’t understand what’s happening here. Despite a concentrated effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind of performance, year-end bonuses are out of the question for the people in that department.”

The company uses the weighted-average method in its process costing.

 

 

Required:

1. Prepare a report for the Forming Department for October showing how much cost should have been assigned to the units completed and transferred to the Stamping Department and to the ending work in process inventory.

2. Explain to the president why the unit cost appearing on the report prepared by the accountant is so high.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees


We value our customers, and so ensure that our papers are 100 percent original. Our Team of professionals does not miss the mark; they ensure that step by step each paper is written uniquely. We never duplicate or work as we compare papers rest assured. We deliver our work a day before time to ensure that you don’t miss your deadlines. It is not only doing the work but delivering it at the right time. We capture the consequences of late remittances. .

Money-back guarantee

We value customer satisfaction here at popularessaywriters.com and make sure that you get the best value for your Money. It happens that sometimes you can pay twice for your order or may want to cancel it, or you feel that it doesn’t meet your requirements; our money back guarantee will give you the opportunity to get back your money. We will also refund 100% of money paid double. In case your paper does not satisfy your requirements , we request that you notify us via writing within 2 days otherwise on the third day we will assume that you have been satisfied. Do all your correspondences through our email address popularessaywriters@gmail.com.

Read more

Zero-plagiarism guarantee

At popularessaywriters.com, our professional writers know the consequence plagiarism does for our clients. We have updated software’s such as article checker and copyscape to check for originality of the custom papers before submission of the final paper to the you. Our guarantee to the customer is that we will write 100% original papers for them that are quality, timely and of low cost. We have experienced professional and competent PhD writers who will write quality custom papers for you..

Read more

Free-revision policy

. At popularessaywriters.com, we are proud to provide top-quality Essay writing service to our esteemed customers. We are ready to take up that challenging academic assignment that is giving you sleepless nights and simplify it for you according to your desired requirements. We are willing to revise your paper if it does not meet your requirements. At popularessaywriters.com, we do not compromise with quality; thus, we offer unlimited free revisions until the customer is satisfied with their custom paper. Our unlimited free revision services are provided under the following terms:.. .

Read more

Privacy policy

Popularessawriters.com knows that client’s information is an essential tool for our company. It means that whatever the client requests from our service is kept strictly confidential. It means that whoever writes for this company understands the terms and conditions hence you should not be worried because you will never see your work somewhere else...

Read more

Fair-cooperation guarantee

Rest assured that we will always be attentive to your needs and requirements. We belief in the phrase treat your neighbour as you would want them to treat you. We leave nothing to chance and always look forward to a good interaction with each other.. .

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency