Chapter 1: Insurance Terms and Related Concepts
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Jutko Corporation produces leather gloves. Jutko uses a process costing system to record costs. On December 1, Jutko had 15,000 gloves in the Cutting Department. The gloves were 80% complete as to direct materials and 40% complete as to conversion costs. The following data were gathered on December 30:
|Units started this period||320,000|
|Units completed this period||325,000|
|Units in ending work in process (70% complete as to direct materials and 30% complete as to conversion costs)||10,000|
Partially completed forms and a blank general journal are provided in the Working Papers.
Calculate equivalent units of production for the Cutting Department for December.
Record the following transactions:
|Dec. 31.||Recorded the transfer of goods from the Cutting Department to the Stitching Department, $421,500.00. M524.|
|Dec. 31.||Recorded the transfer of finished goods out of the Stitching Department,$734,800.00. M525.|