Accounting Chapter 4 8 Work in process, October 1Units started

142

119) Bayas Corporation uses process costing. A number of transactions that occurred in June are

listed below.

(1) Raw materials that cost $39,800 are withdrawn from the storeroom for use in the

Mixing Department. All of these raw materials are classified as direct materials.

(2) Direct labor costs of $16,100 are incurred, but not yet paid, in the Mixing

Department.

(3) Manufacturing overhead of $45,700 is applied in the Mixing Department using the

department’s predetermined overhead rate.

(4) Units with a carrying cost of $87,600 finish processing in the Mixing Department and

are transferred to the Drying Department for further processing.

(5) Units with a carrying cost of $111,300 finish processing in the Drying Department,

the final step in the production process, and are transferred to the finished goods

warehouse.

(6) Finished goods with a carrying cost of $98,200 are sold.

Required:

Prepare journal entries for each of the transactions listed above.

120) Cadot Inc. uses the weighted-average method in its process costing system. The following

data concern the operations of the company’s first processing department for a recent month.

Work in process, beginning:

Units in process

400

Percent complete with respect to materials

90

%

Percent complete with respect to conversion

70

%

Units started into production during the month

18,000

Work in process, ending:

Units in process

600

Percent complete with respect to materials

80

%

Percent complete with respect to conversion

40

%

Required:

Using the weighted-average method, determine the equivalent units of production for materials

and conversion costs.

Units transferred to the next department

Ending work in process:

Materials: 600 units × 80%

480

Conversion: 600 units × 40%

Equivalent units of production

121) Greenham Corporation uses the weighted-average method in its process costing. The

following data pertain to its Materials Preparation Department for November.

Units in process, November 1: materials 75% complete, conversion 60% complete

400

Units started into production during November

6,800

Units completed and transferred to the next department

6,300

Units in process, November 30: materials 55% complete, conversion 10% complete

900

Required:

Determine the equivalent units of production for the Materials Preparation Department for

November using the weighted-average method.

Transferred to next department

Work in process, ending:

Materials: 900 units × 55%

Conversion: 900 units × 10%

Equivalent units of production

122) Poirrier Corporation uses process costing. The following data pertain to its Assembly

Department for February.

Units in process, February 1: materials 75% complete, conversion 30%

complete

700

Units started into production during February

5,500

Units completed and transferred to the next department

4,600

Units in process, February 28: materials 85% complete, conversion 65%

complete

1,600

Required:

Determine the equivalent units of production for the Assembly Department for February using

the weighted-average method.

Transferred to next department

Work in process, ending:

Materials: 1,600 units × 85%

Conversion: 1,600 units × 65%

Equivalent units of production

123) The following data have been provided by Cutts Corporation, which uses the weighted-

average method in its process costing. The data are for the company’s Shaping Department for

October.

Percent Complete

Units

Materials

Conversion

Work in process, October 1

300

50

%

10

%

Units started into production during October

5,200

Units completed during October and transferred to the

next department

4,800

Work in process, October 31

700

50

%

40

%

Required:

Compute the equivalent units of production for both materials and conversion costs for the

Shaping Department for October using the weighted-average method.

Units transferred to the next department

Ending work in process:

Materials: 700 units × 50%

Conversion: 700 units × 40%

Equivalent units of production

124) Mccabe Corporation uses the weighted-average method in its process costing. The

following data pertain to its Assembly Department for September.

Percent Complete

Units

Materials

Conversion

Work in process, September 1

800

55

%

10

%

Units started into production during September

8,200

Units completed during September and transferred to

the next department

7,300

Work in process, September 30

1,700

75

%

25

%

Required:

Compute the equivalent units of production for both materials and conversion costs for the

Assembly Department for September using the weighted-average method.

Materials

Conversion

Units transferred to the next department

Ending work in process:

Materials: 1,700 units × 75%

Conversion: 1,700 units × 25%

Equivalent units of production

149

125) Bachelet Inc. uses the weighted-average method in its process costing system. The

following data concern the operations of the company’s first processing department for a recent

month.

Work in process, beginning:

Units in process

400

Percent complete with respect to materials

90

%

Percent complete with respect to conversion

40

%

Costs in the beginning inventory:

Materials cost

$

756

Conversion cost

$

4,448

Units started into production during the month

13,000

Units completed and transferred out

13,000

Costs added to production during the month:

Materials cost

$

29,949

Conversion cost

$

362,127

Work in process, ending:

Units in process

100

Percent complete with respect to materials

50

%

Percent complete with respect to conversion

30

%

Required:

Using the weighted-average method:

a. Determine the equivalent units of production for materials and conversion costs.

b. Determine the cost per equivalent unit for materials and conversion costs.

c. Determine the cost of units transferred out of the department during the month.

d. Determine the cost of ending work in process inventory in the department.

126) Miller Corporation manufactures a product for which materials are added at the beginning

of the manufacturing process. A review of the company’s inventory and cost records for the most

recently completed year revealed the following information:

Units

Materials

Conversion

Work in process, Jan. 1

(80% complete with respect to conversion

costs)

100,000

$100,000

$157,500

Units started into production

500,000

Costs added during the year

$650,000

$997,500

Units completed during the year

450,000

The company uses the weighted-average cost method in its process costing system. The ending

inventory is 50% complete with respect to conversion costs.

Required:

a. Compute the equivalent units of production and the cost per equivalent units for materials and

for conversion costs.

b. Determine the cost transferred to finished goods.

c. Determine the amount of cost that should be assigned to the ending work in process inventory.

Units transferred to the next department

Ending work in process inventory:

Materials: 150,000 units × 100%

Conversion: 150,000 units × 50%

Equivalent units of production

Cost of beginning work in process inventory

Costs added during the period

Total cost (a)

Equivalent units of production (b)

Cost per equivalent unit (a) ÷ (b)

127) Whiston Corporation uses the weighted-average method in its process costing system. The

following data were taken from the records of the first processing department for a recent month.

Work in process, beginning:

Units in process

40

Percent complete with respect to materials

60%

Percent complete with respect to conversion

50%

Costs in the beginning inventory:

Materials cost

$6,200

Conversion cost

$16,300

Units started into production during the month

190

Costs added to production during the month:

Materials cost

$42,390

Conversion cost

$136,340

Work in process, ending:

Units in process

30

Percent complete with respect to materials

50%

Percent complete with respect to conversion

40%

Required:

a. How many units were transferred to the next department during the month?

b. What were the equivalent units of production for materials and for conversion costs for the

month?

c. What were the costs per equivalent unit of production for materials and for conversion costs

for the month?

d. What was the cost of the ending work in process inventory in the department at the end of the

month?

e. What was the cost of the units completed and transferred to the next department during the

month?

Conversion

Units transferred to the next department

Ending work in process inventory:

Materials: 30 units × 50%

Conversion: 30 units × 40%

Equivalent units of production