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L Corp. produces exterior latex paint, which it sells in one-gallon containers

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L Corp. produces exterior latex paint, which it sells in one-gallon containers. The company has two processing departments-Base Fab and Finishing. White paint, which is used as the base for all the company's paints, is mixed from raw ingredients in the Base Fab Department. Pigments are added to the basic white paint, the pigmented paint is squirted under pressure into one-gallon containers, and the containers are labeled and packed for shipping in the Finishing Department. Information relating to the company's operations for April follows:

 

 

Production data: Units

 

 Units (gallons) in process, April 1: Materials 100% complete, labor and overhead 60% complete: 30,000

 

 Units (gallons) started into production during April : 420,000

 

 Units (gallons) completed and transferred to the Finishing department : 370,000

 

 Units (gallons) in process, April 30: Materials 50% complete, labor and overhead 25% complete 75,000

 

Cost data:

 

Work in Process, inventory, April 1:

 

 Materials $93,625 

 

 Labor $20,438 

 

 Overhead $35,875 

 

 Total cost of work in processs $149,938 

 

Cost added during April:

 

 Materials $851,000 

 

 Labor $330,000 

 

 Overhead $665,000 

 

 Total cost added during April $1,846,000 

 

 

Losses are considered DISCRETE and are found at the end of production. Any losses over 1% of completed units are considered abnormal.

 

 

 

PROBLEM REQUIREMENTS:

 

 

For the Base Fab determine the equivalent units of production for direct materials, direct labor and overhead if the company uses weighted average method.

 

 

a) Calculate the number of normal losses.

 

b) Calculate the number of abnormal losses.

 

c) Calculate the units started and completed.

 

d) Calculate the equivalent units of production for direct materials.

 

e) Calculate the equivalent units of production for direct labor and overhead.

 

f) What is the amount to be transferred to Finishing Department?

 

g) What is the value of Ending Base Fab WIP Inventory?

 

 

PLEASE USE THESE VALUES TO COMPLETE THE EXCEL FORM

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[Solved] L Corp. produces exterior latex paint, which it sells in one-gallon containers

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