Chapter 06 – Process Costing
6-37: Weighted Average Method (20 min)
1.,2.
6-38 FIFO Method (20 min) — see solution above
6-39 Weighted-Average Method (30-40 min)
6-21
Education.
1., 2.
Materials X Materials Y Conversion
Equivalent Units 100,000 70,000 85,000
Cost per Equiv. Unit $2.175 $3.20 $5.00
Answer shown in Cost Report below:
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Education.
Chapter 06 – Process Costing
6-40 Weighted-Average Method (30 min)
1. Equivalent units:(note: units started = 200,000+30,000-50,000=180,000)
Conversion: 215,000
2. Cost per equivalent unit:
Direct Materials: ¥ 3.910 (¥ is the symbol for the Chinese Yuan)
3. Cost of goods completed and transferred out: ¥ 2,089,000
4. Cost of work-in-process, 10/31: ¥ 191,865
Answers in Cost Report Follow:
6-23
Education.
Chapter 06 – Process Costing
6-40 (continued-1)
5. The exchange rate as of August 15, 2014 was $1 US = 6.1470 Yuan,
a fall in the dollar of approximately 4% over the prior three years.
The rise of the Yuan means that the Lin Company faces greater
6-24
Education.
Chapter 06 – Process Costing
6-41 Weighted-Average Method; Transferred in Units (25 min)
1. Equivalent units
a. Transferred in: 32,000
c. Conversion: 29,500
2. Unit costs
a. Transferred-in $6.25
4. Cost of Ending work in process inventory: $43,114
Cost Report Follows:
6-25
Chapter 06 – Process Costing
6-41 (continued -1)
5.
For Materials Cost
Work-in-Process Inventory 60,000
Materials Inventory 60,000
For Labor Cost
Work-in-Process Inventory 55,000 (= 110,000/2)
Accrued Payroll 55,000
For Overhead Cost
6-26
Education.
Chapter 06 – Process Costing
6-42 Reconditioning Service; Weighted-Average (20 min)
1. Cost Report for November
6-27
Chapter 06 – Process Costing
Problem 6-42 (continued-1)
2. The information in the cost report shows two relevant items of
information regarding planning for the coming month’s work. First,
note there has been an increase in WIP during November, a month in
which there were fewer units in process (1,350 units) . December’s
work will require 1,500 + 300 = 1,800 units in process, somewhat
larger than November’s requirement. GWI should be concerned
6-28
Education.
Chapter 06 – Process Costing
6-29
Education.
Chapter 06 – Process Costing
6-43 Weighted Average Method (25 min)
1.,2.,3.
6-30