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Quick Study 20-20 (10 minutes)
The ending balance in Work in Process Inventory—Cutting is $7,100 and
the ending balance in Work in Process Inventory—Binding is $17,042, as
computed below.
Work in Process—Cutting
Beg. Inventory 3,445
Work in Process—Binding
Beg. Inventory 6,426
30,000 Transferred to finished goods
Quick Study 20-21 (15 minutes)
Equivalent units under the FIFO method
Equivalent
EUP for materials—FIFO Units
Equivalent units to complete beginning WIP (2,000 x 30%)............. 600
* Units completed – Units in beginning work in process = Units started and completed,
17,000 – 2,000 = 15,000. Units completed = Units in beginning work in process + Units
Cost per equivalent unit—FIFO
Direct
Materials
Costs incurred this period............................................. $27,900
Quick Study 20-22 (15 minutes)
Assignment of direct materials costs to output of department—FIFO
Costs transferred out
Costs to complete beginning WIP..............................
Cost of units started and completed this period
Total costs of units transferred out............................ $26,350
Cost of ending work in process inventory
Quick Study 20-23 (10 minutes)
1. Raw Materials Inventory...............................................62,000
Purchase of raw materials inventory.
2. Work in Process Inventory...........................................50,000
Quick Study 20-24 (10 minutes)
1. Work in Process Inventory...........................................125,000
2. Factory Overhead.........................................................10,000
3. Factory Payroll Payable...............................................135,000
Quick Study 20-25 (15 minutes)
1. Factory Overhead......................................................... 9,000
2. Factory Overhead.........................................................156,000
3. Work in Process Inventory...........................................175,000
Quick Study 20-26 (10 minutes)
Finished Goods Inventory............................................275,000
Quick Study 20-27 (5 minutes)
If the company is successful in reducing water usage, its raw materials
cost (water) should decline. Likewise, assuming water used in its cleaning
EXERCISES
Exercise 20-1 (10 minutes)
1. Process operation 7. Job order operation
2. Process operation 8. Process operation
Note: Reasonable arguments can be made to classify #7 and #11 as being made
in a process operation, and #8 in a job order operation, in some cases.
Exercise 20-2 (10 minutes)
a. Job order operation. e. Job order operation.
Exercise 20-3 (10 minutes)
1. F 5. G
Exercise 20-4 (30 minutes)
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
Units of
Product
2. Beginning inventory is 40% complete with respect to materials.
Ending inventory is 75% complete with respect to materials.
Units of
EUP for Materials Product
Goods completed (80,000 EUP x 100%)................................... 80,000
3. Beginning inventory is 60% complete with respect to materials.
Ending inventory is 30% complete with respect to materials.
Units of
EUP for Materials Product
Goods completed (80,000 EUP x 100%)................................... 80,000
Exercise 20-5 (30 minutes)
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
Units of
Product
To complete beginning work in process (24,000 EUP x 0%)......... 0
2. Beginning inventory is 40% complete with respect to materials.
Ending inventory is 75% complete with respect to materials.
Units of
EUP for Materials Product
To complete beginning work in process (24,000 EUP x 60%)....... 14,400
3. Beginning inventory is 60% complete with respect to materials.
Ending inventory is 30% complete with respect to materials.
Units of
EUP for Materials Product
To complete beginning work in process (24,000 EUP x 40%)....... 9,600
Exercise 20-6 (30 minutes)
1.
Equivalent units of production—Weighted average
Direct
Materials Conversion
Units completed & transferred out (295,000 x 100%)...........295,000 295,000
2.
Cost per equivalent unit—Weighted average
Direct
Materials Conversion
Costs of beginning work in process............................. $ 44,800 $ 15,300
Costs incurred this period............................................. 1,231,200 896,700
3.
Cost assignment—Weighted average
Costs of units transferred out
Direct materials (295,000 EUP x $4.00 per EUP)...... $1,180,000
Conversion (295,000 EUP x $3.00 per EUP)............. 885,000
Exercise 20-7 (30 minutes)
1.
Direct
Equivalent units of production—FIFO Materials Conversion
Units to complete beginning work in process
Direct materials (25,000 x 40%)..........................................
Conversion (25,000 x 60%)..................................................
10,000
15,000
2.
Cost per equivalent unit—FIFO
Direct
Materials Conversion
Costs incurred this period............................................. $1,231,200 $896,700
EUP
EUP
Exercise 20-8 (20 minutes)
1. Units transferred out
Units Dept. 1 - units
Units in Beg. inventory 60,000 Beg. Inv 60,000
2. EUP
Equivalent units of production - weighted-average
Direct
Materials Conversion
Units completed & transferred out (300,000 x 100%)……… 300,000 300,000
Units in ending work in process
