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Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs. Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement Total $ 455,000 $ $ $ $ $ 114,000 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000

Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs. Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement Total $ 455,000 $ $ $ $ $ 114,000 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 38P: Healthway uses a process-costing system to compute the unit costs of the minerals that it produces....
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Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement $ $ $ Total $ 455,000 Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) $ $ 114,000. 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000
Transcribed Image Text:Ferdon Watches, Inc., makes four models of watches, Gag-Gift, Commuter, Sport, and Retirement. Ferdon manufactures the watches in four departments: Assembly, Polishing, Special Finishing, and Packaging. All four models are started in Assembly where all material is assembled. The Gag-Gift is transferred to Packaging, where it is packaged and transferred to finished goods inventory. The Commuter and Sport are assembled, then transferred to Polishing. Once the polishing process is completed, they are transferred to Packaging and then finished goods. The Retirement model is assembled and then transferred to Special Finishing, and then Packaging. When packaged, it is transferred to finished goods. Data for October are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. Materials Conversion costs: Assembly Polishing Special Finishing Packaging Total conversion costs Gag-Gift Commuter > Answer is complete but not entirely correct. Cost Per Unit Sport Retirement $ $ $ Total $ 455,000 Required: b. What is the cost per unit transferred to finished goods inventory for each of the four watches in October? (Round "Cost Per Unit" to 2 decimal places.) $ $ 114,000. 55,600 32,400 76,000 $ 278,000 5.40 X 7.24 X 7.25 X 14.40 x Gag-Gift (6,600 units) $ 33,000 Commuter (11,600 units) $116,000 Sport (16,200 units) $ 243,000 Retirement (3,600 units) $ 63,000
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