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187) A company's January 1 Work in Process inventory contained 30,000 units that were 25% complete
with respect to direct labor. The beginning inventory was completed this year and another 120,000
units were started. Of those started, 80,000 were finished and the remaining 40,000 were left 20%
complete. Calculate the equivalent units of production for the year using the weighted average
method.
188) Sutton Company uses a process costing system. In May, 80,000 units were finished and transferred
to finished goods. Ending Work in Process included 20,000 unfinished units 30% complete.
Calculate the equivalent units of production for the year using the weighted average method.
189) The following data is available for Donaldson Corp. for the current year:
Beginning inventory of Work in Process 12,000 units, 60% completed
Ending inventory of Work in Process 18,000 units, 30% completed
Units completed and transferred to
finished goods during the year 144,000 units
Calculate the equivalent units of production for the year using the weighted average method.
190) A company uses a process costing system and the weighted average method for inventory costs. The
following information is available regarding direct labor for the current year:
Work in Process, January 1 5,500 units, 80% complete
Work in Process, December 31 8,800 units, 40% complete
Units completed and transferred to
finished goods 46,900 units
Direct labor costs during the year $266,300
(a) Calculate the equivalent units of production for direct labor for the year.
(b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).
191) A company uses a process costing system and the weighted average method for inventory costs. The
following information is available regarding conversion activities for the current year:
Work in Process, January 1 5,500 units, 80% complete
Work in Process, December 31 7,800 units, 50% complete
Units completed and transferred to finished goods 46,900 units
Calculate the equivalent units of production for direct labor for the year.
224
192) A company uses a process costing system and the weighted average method for inventory costs. The
following information is available regarding direct labor for the current year:
Ending Work in Process 5,300 units, 50% complete
Units completed and transferred to finished goods 28,700 units
Direct labor costs during the year $199,300
Calculate the average cost per equivalent unit for direct labor (round to the nearest cent).
193) Refer to the following information about the Finishing Department in the Davidson Factory for the
month of June. Davidson Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
Physical units…………………………………………... 5,000 units
% complete for materials………………………………. 70%
% complete for labor and overhead……………………. 25%
Materials cost from May……………………………….. $7,350
Labor and overhead cost from May……………………. $3,125
Product started and completed:
Physical units…………………………………………… 40,000 units
Ending Work in Process inventory:
Physical units………………………………………….... 4,000 units
% complete for materials………………………………. 40%
% complete for labor and overhead ……………………. 10%
Manufacturing costs for June:
Materials………………………………………………… $96,975
Labor and overhead……………………………………... $79,470
Physical units
4,000 units
225
Compute equivalent units for direct materials, direct labor and overhead for June.
194) Refer to the following information about the Finishing Department in the Davidson Factory for the
month of June. Davidson Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
Physical units 5,000 units
% complete for materials 70%
% complete for labor and overhead 25%
Materials cost from May $7,350
Labor and overhead cost from May $3,125
Product started and completed:
Physical units 40,000 units
Ending Work in Process inventory:
Physical units
5,000 units
226
% complete for materials 40%
% complete for labor and overhead 10%
Manufacturing costs for June:
Materials $96,975
Labor and overhead………………………………………… $79,470
Compute the equivalent cost per unit for direct materials, direct labor and overhead for June.
195) Refer to the following information about the Finishing Department in the Davidson Factory for the
month of June. Davidson Factory uses the FIFO method of inventory costing.
Beginning Work in Process inventory:
% complete for materials 70%
% complete for labor and overhead 25%
Materials cost from May $7,350
Labor and overhead cost from May $3,125
Product started and completed:
Physical units 40,000 units
Ending Work in Process inventory:
Physical units 4,000
units
% complete for materials 40%
% complete for labor and overhead 10%
Manufacturing costs for June:
Materials $96,975
Labor and overhead………………………………………… $79,470
Compute the total cost of all units that were completed and transferred to finished goods during June.
Compute the total cost of the ending Work in Process inventory.
196) Refer to the following information about the Finishing Department in the Davidson Factory for the
month of June. Davidson Factory uses the weighted-average method of inventory costing.
Beginning Work in Process inventory:
Physical units 5,000 units
% complete for materials 70%
% complete for labor and overhead 25%
Materials cost from May $7,350
Labor and overhead cost from May $3,125
Product started and completed:
Physical units 40,000 units
Ending Work in Process inventory:
Physical units 4,000
units
% complete for materials 40%
% complete for labor and overhead 10%
Manufacturing costs for June:
Materials $96,975
Labor and overhead………………………………………… $79,470
Compute the total cost of all units that were completed and transferred to finished goods during June.
Compute the total cost of the ending Work in Process inventory.
197) A company's January 1 Work in Process inventory contained 30,000 units that were 25% complete
with respect to direct labor. The beginning inventory was completed this year and another 120,000
units were started. Of those started, 80,000 were finished and the remaining 40,000 were 30%
complete. Calculate the equivalent units of production for the year using the FIFO method.
198) Prepare the required general journal entries to record the following transactions for the Ringer
Company.
a. Purchased $40,000 of raw materials on account.
b. Used $12,000 of direct materials in the production department.
c. Used $5,000 of indirect materials.
199) Prepare the required general journal entry to record the following transactions for the O'Harra
Company.
a. Used $78,000 of direct labor in the production department.
b. Used $17,000 of indirect labor.
200) Wang Company provides the following data for the current year:
Estimated Factory Overhead
$7,800
Factory Overhead Incurred
Factory Overhead Applied
Estimated Direct Labor Cost
$11,400
?
$12,000
Direct Labor Cost Incurred
Required:
$11,800
a. Calculate the predetermined overhead allocation rate based on direct labor.
b. Determine the amount of overhead applied to production.
c. Prepare the journal entry to apply factory overhead to Work in Process.
201) Refer to the following information about the Shaping Department of the Minnesota Factory for the
month of August. Minnesota Factory uses the FIFO method of inventory costing.
Equivalent
Units
Total
Cost
Beginning Work in Process:
Costs from prior month
$ 7,000
Materials added
300
Labor and overhead added
375
Started and completed goods:
Materials added
2,000
Labor and overhead added
2,000
Ending Work in Process:
Materials added
320
Labor and overhead added
360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and
overhead is $22.00. Compute the cost that should be assigned to the beginning units that were
completed and transferred during August.
202) Refer to the following information about the Shaping Department of the Minnesota Factory for the
month of August. Minnesota Factory uses the weighted average method of inventory costing.
Equivalent
Units
Total
Cost
Beginning Work in Process:
Costs from prior month
$ 7,000
Materials added
300
Labor and overhead added
375
Started and completed goods:
Materials added 232
2,000
233
Materials added
2,000
Labor and overhead added
2,000
Ending Work in Process:
Materials added
320
Labor and overhead added
360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and
overhead is $22.00. Compute the cost that should be assigned to the units that were started and
completed during August.
203) Refer to the following information about the Shaping Department of the Minnesota Factory for the
month of August. Minnesota Factory uses the FIFO method of inventory costing. The cost per
equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and overhead is
$22.00. Compute the cost that should be assigned all units that were completed and transferred
during August.
Equivalent
Units
Total
Cost
Beginning Work in Process:
Costs from prior month
$ 7,000
Materials added
300
Labor and overhead added
375
Started and completed goods:
Materials added
2,000
Labor and overhead added
2,000
Ending Work in Process:
Materials added
320
Labor and overhead added
360
234
204) Refer to the following information about the Shaping Department of the Minnesota Factory for the
month of August. Minnesota Factory uses the FIFO method of inventory costing.
Equivalent
Units
Total
Cost
Beginning Work in Process:
Costs from prior month
$ 7,000
Materials added
300
Labor and overhead added
375
Started and completed goods:
Materials added
2,000
Labor and overhead added
2,000
Ending Work in Process:
Materials added
320
Labor and overhead added
360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and
overhead is $22.00. Compute the cost that should be assigned to the ending Work in Process
inventory for August.
205) Refer to the following information about the Shaping Department of the Minnesota Factory for the
month of August. Minnesota Factory uses the FIFO method of inventory costing.
Equivalent
Units
Total
Cost
Beginning Work in Process:
Costs from prior month
$ 7,000
Materials added
300
Labor and overhead added
375
Started and completed goods:
Materials added
2,000
Labor and overhead added
2,000
Ending Work in Process:
Materials added
320
Labor and overhead added
360
The cost per equivalent unit of materials is $10.00, and the cost per equivalent unit of labor and
overhead is $22.00.Prepare a cost reconciliation for the month of August.
