Hoary Hats manufactures

  1. Prepare the report in good form as if you were submitting it to the financial vice-president of the company. It should be neat, well organized, and easy to follow. The standard is that anyone with accounting knowledge should be able to pick up your paper and quickly see what it accomplishes. 2. The spreadsheet should be programmed to make all calculations. For revisions, you should need only to type in the new information. Specific rules include: 1. Type each item of information only once. 2. Never embed information in formulas. 3. All information and solutions should be clearly labeled. Spreadsheet #1 Hoary Hats manufactures head coverings for old people. Each hat passes through the cutting department, assembly department, and packaging department. This problem focuses on the cutting department. The process costing system at Hoary uses two cost categories, direct materials and conversion costs. Direct materials are added at the beginning of the process. Conversion costs are added evenly throughout the process. All hats that are completed in the cutting department are transferred to assembly at the end of the day. Data for March in the cutting department are given below. 1. Using Excel and assuming Hoary Hats uses the weighted-average method of process costing, prepare a report that does the following. A. For each cost category, compute equivalent unit in the cutting department. B. For each cost category, summarize the total cutting department costs for March and calculate cost per equivalent unit. C. Assign costs to units completed and transferred out and to units in ending work in process. 2. In a separate tab in Excel and assuming Hoary hats uses the FIFO method of process costing, prepare a report that does the following. A. For each cost category, compute equivalent unit in the cutting department. B. For each cost category, summarize the total cutting department costs for March and calculate cost per equivalent unit. C. Assign costs to units completed and transferred out and to units in ending work in process.