Chapter 20 – Process Costing
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
Ending work in process (16,000 EUP x 75%)…..….………….…… 12,000
Total EUP……………………………………………………..…….……….……. 92,000
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
20-1123
Chapter 20 – Process Costing
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
20-1124
Chapter 20 – Process Costing
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
Units of ending work in process
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
Total costs transferred out…………………….….……….….. $2,065,000
Costs of ending work in process
*Equals costs to account for of $2,188,000, computed as $60,100 + $1,231,200 + $896,700
Exercise 20-7 (30 minutes)
1.
Equivalent units of production—FIFO
Direct
Materials Conversion
20-1125
Chapter 20 – Process Costing
Units to complete beginning work in process
Direct materials (25,000 x 40%)……………………………………..
Conversion (25,000 x 60%)……………………………….…….…….
Units started and completed (270,000 x 100%).…………........
10,000
270,000
15,000
270,000
2.
Cost per equivalent unit—FIFO
Direct
Materials Conversion
Costs incurred this period………………………………….…… $1,231,200 $896,700
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
Exercise 20-9 (20 minutes)
20-1126
Chapter 20 – Process Costing
1. Cost per EUP
Cost per equivalent unit – weighted-average
Direct
Materials Conversion
Costs of beginning inventory $118,472 $48,594
Costs incurred this period 850,368 649,296
Exercise 20-9 (continued)
2.
Cost assignment and reconciliation – weighted-average
Costs of units transferred out
Direct materials (300,000 EUP x $2.65 per EUP) $795,000
Conversion costs (300,000 EUP x $2.15 per EUP) 645,000
Total cost of 300,000 units transferred out $1,440,000
Dept. 1 – WIP
Beg. Inv 167,066
DM 850,368
Exercise 20-10 (20 minutes)
20-1127
Chapter 20 – Process Costing
1.
Units Units
Units in beginning inventory 60,000 60,000 60,000
2.
Equivalent units of production – FIFO
Direct
Materials Conversion
Complete beginning inventory (60,000 x 40% Mtl, 60% Conv.) 24,000 36,000
1.
Cost per equivalent unit – FIFO
Direct
Materials Conversion
Costs incurred this period 850,368 649,296
÷ Equivalent units of production 329,600 300,600
Cost per equivalent unit of production $2.58 $2.16
Exercise 20-11 (continued)
2.
Cost assignment and reconciliation – FIFO
Cost of 60,000 units from beginning inventory
Beginning inventory $ 167,066
20-1128
Chapter 20 – Process Costing
Total cost of 300,000 units transferred out $1,444,346
Costs of units in ending inventory
Direct materials (65,600 EUP x $2.58 per EUP) $169,248
Conversion costs (24,600 EUP x $2.16 per EUP) 53,136
Dept. 1 – WIP
Beg. Inv 167,066
DM 850,368
20-1129