Professional Documents
Culture Documents
145
146
16.
Service firms generally do not have work-inprocess inventories, and so equivalent units
of production are not needed. An important
factor in process costing for services is determining just what constitutes a unit of output.
EXERCISES
61
Job-Order
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
Paint manufacturing
Auto manufacturing
Toy manufacturing
Custom cabinet making
Airplane manufacturing
Personal computer assembly
Furniture making
Custom furniture making
Dental services
Hospital services
Paper manufacturing
Auto repair
Architectural services
Landscape design services
Light bulb manufacturing
Process
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
62
1.
2.
3.
4.
147
63
1.
Beginning balance
Direct materials
Direct labor
Applied overhead
Total cost
Job #614
$10,200
4,200
1,800
1,080
$17,280
Job #615
$ 9,670
9,500
4,000
2,400
$25,570
Job #616
$
0
1,000
150
90
$1,240
Job #617
$
0
3,150
800
480
$4,430
2.
Ending balance in Work in Process = Job #614 + Job #616 + Job #617
= $17,280 + $1,240 + $4,430 = $22,950
3.
64
1.
2.
Beginning balance
Direct materials
Direct labor
Applied overhead
Total cost
Job #265
$30,330
13,000
15,000
11,250
$69,580
Job #266
$62,170
7,000
12,000
9,000
$90,170
Job #267
$
0
3,500
1,900
1,425
$6,825
Job #268
$
0
4,750
7,000
5,250
$17,000
3.
Ending balance in Work in Process = Job #266 + Job #267 + Job #268
= $90,170 + $6,825 + $17,000 = $113,995
4.
148
65
1.
Direct materials
Direct labor (50 hours $10)
Overhead (50 hours $4)
Total cost
Units
Unit cost
$ 3,400
500
200
$ 4,100
10
$ 410
2.
3.
Jordan would need to prepare a simple form that included columns for the
date, the beginning time, the ending time, the total number of hours worked,
and the job name (or number). She could have a separate page for each day.
This would be especially helpful if she hired other employees from time to
time to work on jobs.
66
1.
Ending balance in
Work in Process
2.
Ending balance in Finished Goods = Job #901 + Job #903 + Job #905 + Job #910
= $650 + $550 + $860 + $803 = $2,863
3.
Cost of Goods Sold = Job #904 + Job #907 = $695 + $180 = $875
149
67
1.
Balance, 7/1
Direct materials
Direct labor
Applied overhead:
Power1
Material handling2
Purchasing3
Total cost
Job #70
$ 25,000
12,900
20,000
Job #71
$
0
9,900
6,500
Job #72
$
0
35,350
13,000
500
1,250
400
$ 60,050
400
250
1,600
$18,650
2,400
5,000
400
$ 56,150
2.
3.
4.
68
Bosserman Company
Income Statement
For the Month Ended July 31, 20XX
Sales ($60,050 1.40) .................................................
Cost of goods sold .....................................................
Gross margin ..............................................................
Selling expenses (0.10 $84,070 + $4,100) ..............
Administrative expenses ...........................................
Operating income .......................................................
150
$ 84,070
60,050
$ 24,020
12,507
3,900
$ 7,613
69
1.
2.
$140,000
138,500
$ 1,500
3.
Direct materials
Direct labor
Overhead applied
Applied overhead
Actual overhead
Overapplied overhead
$ 40,000
80,000
140,000
$ 260,000
17,000
(32,000)
$ 245,000
1,500
1,500
151
$ 4,500
10,000
17,500
$ 32,000
610
1.
2.
Direct materials
Direct labor
Applied overhead
Total cost
$ 4,140
4,000
3,600*
$ 11,740
*$3,600 = $9 ($4,000/$10)
3.
189,300
189,000
4.
Actual overhead
Applied overhead
Underapplied overhead
$189,300
189,000
$
300
5.
$740,000
300
$740,300
5,000
20,000
101,300
18,000
45,000
189,000
611
1.
Cutting
Department
$5,400
150
750
Direct materials
Direct labor
Applied overhead
Transferred-in cost:
From cutting
From sewing
Total manufacturing cost
Sewing
Department
$
900
1,800
3,600
Packaging
Department
$
225
900
900
6,300
$6,300
$12,600
152
12,600
$14,625
3.
612
1.
2.
613
1.
2.
14,000
40,000
54,000
45,500
8,500
54,000
153
Materials
45,500
Conversion
45,500
8,500
54,000
2,125
47,625
614
1.
$
0
2,400
$2,400
45,000
8,000
53,000
The schedule of equivalent units using the weighted average method does
not give sufficient information to reconstruct the complete physical flow
schedule. Units in beginning work in process are embedded in units completed.
154
615
1.
Department 1:
a. Units transferred to Department 2 = Total units* Ending WIP
= 6,480 3,600
= 2,880
*Total units = Beginning WIP + Units started = 0 + 6,480 = 6,480
b.
Units completed
Add: Units in ending work in process:
3,600 100%
3,600 50%
Equivalent units of output
2.
Materials
2,880
Conversion
2,880
3,600
6,480
1,800
4,680
Department 2:
a. Units transferred out = Total units* Ending WIP = 4,080 600 = 3,480
*Total units = Beginning WIP + Units transferred in = 1,200 + 2,880 = 4,080
b.
Units completed
Add: Units in ending work in process:
600 0%
600 40%
Equivalent units of output
155
Materials
3,480
Conversion
3,480
0
3,480
240
3,720
616
1.
60,000
220,000
280,000
180,000
60,000
Units completed
Add: Units in ending WIP Fraction complete
(40,000 20%)
Equivalent units of output
3.
4.
5.
390,600
1,171,800
$ 1,562,400
156
$1,512,000
50,400
$1,562,400
240,000
40,000
280,000
240,000
8,000
248,000
617
Cocolots Company
Mixing Department
Production Report
For the Month of June 20XX
(Weighted Average Method)
Unit Information
Physical flow:
Units to account for:
Units accounted for:
Units in beginning WIP 60,000
Units completed
Units started
220,000
Units in ending WIP
Total units to account for 280,000
Total units accounted for
Equivalent units:
Units completed
Units in ending work in process
Total equivalent units
240,000
40,000
280,000
240,000
8,000
248,000
Cost Information
Costs to account for:
Beginning work in process
Incurred during March
Total costs to account for
$ 390,600
1,171,800
$1,562,400
6.30
Ending
Work in Process
Total
$1,512,000
$1,512,000
$1,512,000
$50,400
$50,400
50,400
$1,562,400
157
618
Completed
Ending WIP
Equivalent units
B
24,000c
0
24,000
A
16,200a
1,000b
17,200
C
31,000d
900e
31,900
D
60,000f
2,500g
62,500
(9,000 0.10)
(30,000 + 40,000 10,000)
g
(10,000 0.25)
619
Completed*
Add: Ending WIP*
Less: Beginning WIP**
Equivalent units
A
16,200
1,000
960
16,240
B
24,000
0
400
23,600
C
31,000
900
0
31,900
D
60,000
2,500
22,500
40,000
620
1.
10,000
70,000
80,000
60,000
20,000
80,000
158
620
Concluded
2.
Units completed
Add: Units in ending WIP
Fraction complete (20,000 100%; 20,000 60%)
Equivalent units of output
Materials
60,000
Conversion
60,000
20,000
80,000
12,000
72,000
3.
4.
5.
$100,000
13,560
$113,560
$ 51,625
429,735
$481,360
$367,800
113,560
$481,360
159
$5.00
1.13
$6.13
621
Bath Linens Department
Production Report
For the Month of August 20XX
(Weighted Average Method)
Unit Information
Physical flow:
Units to account for:
Units in beginning WIP
Units started
Total units to account for
10,000
70,000
80,000
60,000
20,000
80,000
Equivalent units:
Materials
60,000
20,000
80,000
Units completed
Units in ending work in process
Total equivalent units
Conversion
60,000
12,000
72,000
Cost Information
Costs to account for:
Beginning WIP
Incurred during August
Total costs to account for
Cost per equivalent unit
Materials
$ 49,000
351,000
$400,000
$
5.00
Conversion
$ 2,625
78,735
$ 81,360
$
1.13
Total
$ 51,625
429,735
$481,360
$
6.13
Transferred
Out
Ending
Work in Process
Total
$367,800
$367,800
$100,000
100,000
$367,800
13,560
$113,560
13,560
$481,360
160
622
1.
2.
3.
4.
5.
6.
7.
8.
b
d
b
b
a
c
c
e
Supporting computations:
Materials
92,000
Units completed
Units in ending WIP
(24,000 90%)
(24,000 40%)
Equivalent units (WA)
Less EU in BWIP
(16,000 60%)
(16,000 20%)
21,600
113,600
WA:
9,600
101,600
(9,600)
(3,200)
Conversion
92,000
104,000
$468,000/104,000
$4.50
($468,000 + $54,560)/113,600
$4.60
$573,040/98,400
$5.82
($573,040 + $35,560)/101,600
$5.99
EWIP:
FIFO: ($4.50 21,600) + ($5.82 9,600) = $153,072
WA: ($4.60 21,600) + ($5.99 9,600) = $156,864
161
98,400
623
1.
120,000
370,000
490,000
400,000
90,000
490,000
280,000
4.
30,000
27,000
337,000
340,600
135,000
1,260,000
$ 1,735,600
162
$1,735,600
121,500
$1,857,100
624
Nogaleen Company
Blending Department
Production Report
For the Month of August 20XX
(FIFO Method)
Unit Information
Physical flow:
Units to account for:
Units in beginning work in process
Units started during August
Total units to account for
Units accounted for:
Units started and completed
Units completed from beginning
work in process
Units in ending work in process
Total units accounted for
120,000
370,000
490,000
Physical Flow
280,000
Equivalent Units
280,000
120,000
90,000
490,000
30,000
27,000
337,000
Cost Information
Costs to account for:
Beginning work in process
Incurred during August
Total costs to account for
$ 340,600
1,516,500
$1,857,100
4.50
Ending
Work in Process
Total
$ 340,600
135,000
135,000
1,260,000
1,260,000
$1,735,600
$121,500
$121,500
121,500
$1,857,100
163
340,600
625
1.
Job #64:
Direct materials
Direct labor
Overhead ($12 410)
$ 1,240
6,150
4,920
$12,310
12,310
12,310
19,696*
164
12,310
12,310
19,696
PROBLEMS
626
1.
2.
Beginning WIP
Direct materials
Direct labor
Applied overhead
Total
Fazel
$ 1,730
600
1,200
360
$ 3,890
Myron
$1,180
350
980
294
$2,804
Patton
$2,500
260
650
195
$3,605
Raider
$
0
780
1,350
405
$ 2,535
Willis
$
0
725
900
270
$ 1,895
Note: This is just one way of setting up the job-order cost sheets. You might
prefer to keep the detail on the materials, labor, and overhead in beginning
inventory costs.
3.
Since the Fazel and Myron jobs were completed, the others must still be in
process. Therefore, the ending balance in Work in Process is the sum of the
costs of the Patton, Raider, and Willis jobs.
Patton
Raider
Willis
Ending Work in Process
$3,605
2,535
1,895
$8,035
Cost of Goods Sold = Fazel job + Myron job = $3,890 + $2,804 = $6,694
4.
Aldrin Company
Income Statement
For the Month Ended June 30, 20XX
Sales (1.4 $6,694) ...................................................................
Cost of goods sold....................................................................
Gross margin .............................................................................
Marketing and administrative expenses .................................
Operating income......................................................................
165
$9,372
6,694
$2,678
1,200
$1,478
627
1.
Direct materials
Direct labor
Overhead ($9 200 MHrs.)
Total manufacturing cost
Plus 30% markup
Bid price
2.
Purchasing rate
Setup cost rate
Engineering rate
Other cost rate
= $30,000/5,000
= $15,000/1,000
= $20,000/500
= $25,000/10,000
Direct materials
Direct labor
Overhead:
Purchasing ($6 15); ($6 20)
Setups ($15 2); ($15 3)
Engineering ($40 25); ($40 10)
Other ($2.50 200); ($2.50 200)
Total manufacturing cost
Plus 30% markup
Bid price
3.
Job #2
$ 8,600
2,000
1,800
$12,400
3,720
$16,120
Job #2
$ 8,600
2,000
90
30
1,000
500
$7,120
2,136
$9,256
120
45
400
500
$11,665
3,500
$15,165
166
628
1. a. Materials ...............................................
Accounts Payable .........................
44,200
27,000
28,200
19,950
18,800
2.
44,200
27,000
28,200
19,950
18,800
Job #703
Beginning balance, Work in Process
Direct materials
Direct labor
Overhead applied
Total
$13,000
12,500
11,700
7,800
$45,000
Job #704
Direct materials
Direct labor
Overhead applied
Total
$14,500
16,500
11,000
$42,000
45,000
6,240
8,736
4.
a. Materials:
Beginning balance
Add: Purchases
Less: Materials requisitioned
Ending balance
45,000
6,240
8,736
$ 6,070
44,200
(27,000)
$ 23,270
167
628
Concluded
b. Work in Process:
Beginning balance
Add: Materials requisitioned
Direct labor
Overhead applied
Less: Jobs completed
Ending balance
$ 13,000
27,000
28,200
18,800
(45,000)
$ 42,000
c. Finished Goods:
Beginning balance
Add: Jobs completed
Less: Jobs sold
Ending balance
$ 6,240
45,000
(6,240)
$ 45,000
629
1. a. Materials ...............................................
Accounts Payable .........................
3,000
1,700
1,200
3,000
1,700
1,200
1,125
Overhead Control..........................
1,125
1,275
2,000
2,500
168
1,275
2,000
2,500
629
3.
Concluded
Kearney Company
Statement of Cost of Goods Manufactured
For the Month Ended April 30, 20XX
Direct materials:
Beginning materials inventory ......................
Purchases of materials ..................................
Total materials available ................................
Ending materials .............................................
Materials used .................................................
Direct labor ...........................................................
Overhead...............................................................
Less: Underapplied overhead .............................
Overhead applied .................................................
Current manufacturing costs ..............................
Add: Beginning work in process ........................
Total manufacturing costs ..................................
Less: Ending work in process ............................
Cost of goods manufactured ..............................
169
$1,400
3,000
$4,400
2,700
$1,700
1,200
$1,230
105
1,125
$4,025
0
$4,025
2,750
$1,275
630
Debroux Company
Assembly Department
Production Report
For the Month of February 20XX
(Weighted Average Method)
Unit Information
Units to account for:
Units in beginning WIP
Units started
Total units
Units completed
Units in ending WIP
Total units
Equivalent units:
Units completed
Units in ending WIP (5,400 70%)
Total equivalent units
34,600
3,780
38,380
Cost Information
Costs to account for:
Costs in beginning WIP
Costs added by department
Total costs to account for
$142,760
333,152
$475,912
$429,040
46,872
$475,912
170
12.40
34,600
5,400
40,000
631
Debroux Company
Assembly Department
Production Report
For the Month of February 20XX
(FIFO Method)
Unit Information
Units to account for:
Units in beginning WIP
Units started
Total units
12,000
28,000
40,000
Equivalent units:
Started and completed
To complete beginning WIP (12,000 40%)
Units in ending WIP (5,400 70%)
Total equivalent units
22,600
4,800
3,780
31,180
Cost Information
Costs to account for:
Costs in beginning WIP
Costs added by department
Total costs to account for
$142,760
333,152
$475,912
$10.6848
171
$241,476
142,760
51,287
$435,523
40,389
$475,912
22,600
12,000
5,400
40,000
632
1.
20,000
510,000
530,000
480,000
20,000
30,000
530,000
Paraffin
500,000
30,000
530,000
Pigment
500,000
30,000
530,000
Pigment
$ 100,000
2,550,000
$2,650,000
Conversion
$ 40,000
5,170,000
$5,210,000
Conversion
500,000
21,000*
521,000
*(30,000 70%)
2.
Paraffin
$ 120,000
3,060,000
$3,180,000
Total
$ 260,000
10,780,000
$11,040,000
Unit cost = Unit paraffin cost + Unit pigment cost + Unit conversion cost
= ($3,180,000/530,000) + ($2,650,000/530,000) +
($5,210,000/521,000)
= $6 + $5 + $10 = $21
3. Ending work in process
= (30,000 $6) + (30,000 $5) + (21,000 $10)
= $180,000 + $150,000 + $210,000
= $540,000
Cost of goods transferred out: 500,000 $21 = $10,500,000
4.
Cost reconciliation:
Costs to account for:
Beginning WIP
August costs
Total to account for
260,000
10,780,000
$11,040,000
172
$10,500,000
540,000
$11,040,000
633
Grace Sauces, Inc.
Mixing Department
Production Report
For the First Quarter 20XX
(FIFO Method)
Unit Information
Units to account for:
Units accounted for:
Units in beginning WIP
144,000
Units transferred out
Units started
180,000
Units in ending WIP
Units to account for
324,000
Units accounted for
* Started and completed = 148,500 + B-WIP 144,000 = 292,500
292,500*
31,500
324,000
Equivalent Units
Transferred In Materials Conversion
148,500
148,500
148,500
36,000
31,500
31,500
6,300
180,000
180,000
190,800
Cost Information
180,000
$
1.28
180,000
190,800
$ 0.1861
$ 0.3807
$ 1.8468
EWIP
Total
$274,250
173
Conversion
Total
$ 14,400
$ 66,432
72,640
336,540
$ 87,040
$402,972
$40,320
5,862
2,398
$48,580
66,432
13,705
40,320
5,862
2,398
$402,967*
634
Grace Sauces, Inc.
Mixing Department
Production Report
For the First Quarter 20XX
(Weighted Average Method)
Unit Information
Units to account for:
Units in beginning WIP
Units started
Units to account for
144,000
180,000
324,000
Units completed
Units in ending WIP
Total units accounted for
292,500
31,500
324,000
Equivalent Units
Transferred In Materials Conversion
292,500
292,500
292,500
31,500
31,500
6,300
324,000
324,000
298,800
Cost Information
324,000
$
0.852
174
Materials
$ 6,432
33,500
$ 39,932
324,000
$
0.12
Transferred Out
$370,421
$370,421
Conversion
Total
$ 14,400
$ 66,432
72,640
336,540
$ 87,040
$402,972
298,800
$ 0.291
EWIP
$26,838
3,780
1,835
$32,453
1.27
Total
$370,421
26,838
3,780
1,835
$402,874*
635
1.
Department A
a. Physical flow schedule:
Units in beginning WIP
Units started in November
Total units to account for
5,000
25,000
30,000
23,000
5,000
2,000
30,000
Materials
$10,000
57,800
$67,800
Conversion
$ 6,900
95,220
$102,120
Total
$ 16,900
153,020
$169,920
Materials
28,000
2,000
30,000
175
Conversion
28,000
1,600
29,600
635
Continued
$159,880
$4,520
5,520
10,040
$169,920
$ 16,900
153,020
$169,920
2. Journal entries:
Work in ProcessDept. A .......................
Materials Inventory ..............................
57,800
95,220
159,880
57,800
95,220*
159,880
*When conversion costs are not broken into labor and overhead components,
a control account for conversion costs is used. Some firms now combine
overhead and direct labor costs into one category. This practice is developing because direct labor is becoming a small percentage of total manufacturing costs.
176
635
3.
Continued
Department B
a. Physical flow schedule:
Units in beginning WIP
Units started in November (transferred in)
Total units to account for
8,000
28,000
36,000
25,000
8,000
3,000
36,000
Beginning WIP
Incurred in Nov.
Total costs
Materials
$
0
37,950
$37,950
Conversion
$ 16,800
128,100
$144,900
Transferred
In
$ 45,320
159,880
$205,200
Total
$ 62,120
325,930
$388,050
Conversion
33,000
1,500
34,500
Transferred
In
33,000
3,000
36,000
177
635
Concluded
$364,650
$
0
6,300
17,100
23,400
$388,050
$ 62,120
325,930
$388,050
159,880
37,950
128,100
364,650
159,880
37,950
128,100*
364,650
*Because conversion costs are not broken into labor and overhead components, a control account for conversion costs is used. Some firms are
now combining overhead and direct labor costs into one category. This
practice is developing because direct labor is becoming a small percentage of total manufacturing costs.
178
636
1.
Department A
a. Physical flow schedule:
Units in beginning WIP
Units started in November
Total units to account for
5,000
25,000
30,000
23,000
5,000
2,000
30,000
Beginning WIP
Incurred during November
Total costs
Conversion
$ 6,900
95,220
$102,120
Total
$ 16,900
153,020
$169,920
Materials
23,000
2,000
25,000
179
Conversion
23,000
3,000
1,600
27,600
636
Continued
$132,526
16,900
10,350
$159,776
$4,624
5,520
10,144
$169,920
$ 16,900
153,020
$169,920
2. Journal entries:
Work in ProcessDept. A .......................
Materials Inventory ..............................
57,800
95,220
159,776
57,800
95,220*
159,776
*Because conversion costs are not broken into labor and overhead components, a control account for conversion costs is used. Some firms are
now combining overhead and direct labor costs into one category. This
practice is developing because direct labor is becoming a small percentage of total manufacturing costs.
180
636
3.
Continued
Department B
a. Physical flow schedule:
Units in beginning WIP
Units started in November (transferred in)
Total units to account for
8,000
28,000
36,000
25,000
8,000
3,000
36,000
Conversion
$ 16,800
128,100
$144,900
In
$ 45,320
159,776
$205,096
Total
$ 62,120
325,826
$387,946
Conversion
25,000
4,000
1,500
30,500
Transferred
In
25,000
0
3,000
28,000
181
636
Concluded
$276,400
62,120
9,200
16,800
$364,520
23,418
$387,938*
$ 62,120
325,826
$387,946*
159,776
37,950
128,100
364,520
159,776
37,950
128,100*
364,520
*As before, a control account for conversion cost is used to combine overhead and direct labor cost into one category.
182
637
1.
a. Molding
Units to account for:
Beginning WIP
Started
500
1,000
1,500
1,300
200
1,500
b. Assembly
Units to account for:
Beginning WIP
Started
0
1,300
1,300
900
400
1,300
c. Packaging
Units to account for:
Beginning WIP
Started
2.
150
900
1,050
1,050
0
1,050
Equivalent units:
Trans. out
EWIP
Molding
Mat. Conv.
1,300 1,300
200
40
1,500 1,340
3.
Unit prior department cost
Unit materials cost
Unit conversion cost
Total unit cost
Assembly
Tr. In
Mat. Conv.
900
900
900
400
160
160
1,300 1,060 1,060
Molding
$ 5.00
6.50
$11.50
Assembly
$11.50
0.46
1.10
$13.06
Molding:
Unit materials cost:
($2,500 + $5,000)/1,500 = $5.00
Unit conversion cost: ($1,050 + $7,660)/1,340 = $6.50
183
Packaging
Tr. In
Mat. Conv.
1,050 1,050 1,050
0
0
0
1,050 1,050 1,050
Packaging
$13.06
2.65
3.05
$18.76
637
Concluded
Assembly:
Unit transferred-in cost: (0 + $14,950)/1,300 = $11.50
Unit materials cost:
(0 + $487.60)/1,060 = $0.46
Unit conversion cost:
(0 + $1,166)/1,060 = $1.10
Packaging:
Unit transferred-in cost: ($1,959 + $11,754)/1,050 = $13.06
Unit materials cost:
($375 + $2,407.50)/1,050 = $2.65
Unit conversion cost:
($225 + $2,977.50)/1,050 = $3.05
4.
Molding:
Transferred out: (1,300 $11.50) = $14,950
Ending WIP:
(200 $5) + (40 $6.50) = $1,260
Assembly:
Transferred out: (900 $13.06) = $11,754
Ending WIP:
(400 $11.50) + (160 $1.56) = $4,849.60
Packaging:
Transferred out: (1,050 $18.76) = $19,698
Ending WIP:
0
5.
BWIP
$3,550.00
0.00
2,559.00
Current
$12,660.00
16,603.60
17,139.00
Total
$16,210.00
16,603.60
19,698.00
Trans. Out
$14,950.00
11,754.00
19,698.00
EWIP
$1,260.00
4,849.60
0.00
Total
$16,210.00
16,603.60
19,698.00
184
638
1.
Equivalent units:
Molding
Mat. Conv.
Started and
completed
BWIP
EWIP
2.
3.
800
0
200
1,000
800
350
40
1,190
Assembly
Tr. In
Mat. Conv.
900
0
400
1,300
Molding:
Unit materials cost:
Unit conversion cost:
Total unit cost
900
0
160
1,060
Packaging
Tr. In
Mat. Conv.
900
0
160
1,060
900
0
0
900
$5,000/1,000
$7,660/1,190
=
=
$ 5.000
6.437
$11.437
Assembly:
Unit transferred-in cost:
Unit materials cost:
Unit conversion cost:
Total unit cost
$14,950/1,300
$487.60/1,060
$1,166/1,060
=
=
=
$11.500
0.460
1.100
$13.060
Packaging:
Unit transferred-in cost:
Unit materials cost:
Unit conversion cost:
Total unit cost
$11,754/900
$2,407.50/900
$2,977.50/975
=
=
=
$13.060
2.675
3.054
$18.789
Molding:
Transferred out:
Started and completed (800 $11.437)
Prior-period cost
Complete beginning WIP (350 $6.437)
Total transferred out
Ending WIP: (200 $5) + (40 $6.437)
185
$ 9,149.60
3,550.00
2,252.95
$ 14,952.55
$ 1,257.48
900
0
0
900
900
75
0
975
638
Concluded
Assembly:
Transferred out:
Started and completed (900 $13.06)
Prior-period cost
Complete beginning WIP
Total transferred out
$ 11,754.00
0.00
0.00
$ 11,754.00
$ 16,910.10
2,559.00
229.05
$ 19,698.15
Ending WIP:
4.
$ 4,849.60
Cost reconciliation:
Costs to account for:
Molding
Assembly
Packaging
BWIP
$3,550.00
0.00
2,559.00
Current
$12,660.00
16,603.60
17,139.00
Total
$16,210.00
16,603.60
19,698.00
Trans. Out
$14,952.55
11,754.00
19,698.15
EWIP
$1,257.48
4,849.60
0.00
Total
$16,210.03*
16,603.60
19,698.15*
186
639
1.
2.
3.
4.
187
RESEARCH ASSIGNMENT
640
Answers will vary.
641
Answers will vary.
188