Exercise 20-14 (30 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Weaving Sewing Finished
Department Department Goods
Beginning inventory……………………………. $ 300,000 $ 570,000 $1,266,000
Direct materials………………………………….. 240,000 75,000
Total costs—Sewing …………………………………. 3,915,000
Less ending inventory—Sewing ………… (700,000)
Part 2: Summary journal entries.
June 30 Work in Process Inventory—Sewing ……………………..2,370,000
Work in Process Inventory—Weaving………………. 2,370,000
Transferred products from weaving to sewing.
Transferred completed products from
sewing to finished goods inventory.
Exercise 20-15 (25 minutes)
Summary journal entries (all dated June 30)
a. Raw Materials Inventory ……………………………………….500,000
b. Work in Process Inventory—Weaving…………………….240,000
c. Factory Overhead ………………………………………………..120,000
d. Work in Process Inventory—Weaving ……………………1,200,000
e. Factory Overhead ………………………………………………..1,500,000
f. Factory Overhead ………………………………………………..156,000
g. Work in Process Inventory—Weaving ……………………960,000
h. Factory Payroll Payable ……………………………………….3,060,000
Exercise 20-16 (25 minutes)
ELLIOTT COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended March 31
Costs Charged to Production
Costs of beginning work in process
Unit information
Units to account for Units accounted for
Equivalent units of production
Direct
Materials Conversion
Units completed & transferred out….. 17,000 EUP 17,000 EUP
Units of ending work in process
EUP
EUP
[Continued on next page]
Exercise 20-16 (continued)
Cost assignment and reconciliation
Costs transferred out
Direct materials (17,000 EUP x $7.75 per EUP)……. $131,750
Exercise 20-17 (40 minutes)
OSLO COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended May 31
Costs Charged to Production
Costs of beginning work in process
[Continued on next page]
Exercise 20-17 (Concluded)
Equivalent units of production
Direct
Materials Conversion
Units completed & transferred out………..13,000 EUP 13,000 EUP
Cost per EUP
Direct
Materials
Conversio
n
Cost of beginning work in process….…... $ 2,880 $ 5,358
EUP
EUP
Cost assignment and reconciliation
Costs transferred out
Direct materials (13,000 EUP x $12.50 per EUP)….. $162,500
Exercise 20-18 (10 minutes)
Equivalent units of production—FIFO
Units of Percent Equivalent
EUP (for materials and conversion) Product Added Units
Beginning work in process…………. 30,000 70% 21,000 EUP
Exercise 20-19 (20 minutes)
[Note: Solution key is on the following page.]
Punching
Beginning Work in
Process
$7,500
Direct
Materials
$60,000
Direct
Labor
$12,000
Factory
Overhead
$15,000
(1) $94,500
$6,000
Exercise 20-19 (Continued)
Key to solution of flowchart
(1) Beginning work in process in punching $ 7,500
(2) Total costs in process in punching department $ 94,500
(3) Beginning work in process in bending $ 9,750
= $83,250
(4) Total costs in process in bending department $249,150
(5) Beginning Finished Goods inventory $ 18,000
(6) Cost of goods available for sale $254,400