Chapter 20 – Process Costing
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
Conversion…………………………………………………………….... 234,992 432,112
Total costs to account for………………………………………..…. $440,350
Unit information
Units to account for Units accounted for
Beginning work in process.............4,000 Completed & transferred out…………………………….……….............................13,000
Units completed & transferred out...........13,000 EUP 13,000 EUP
Units of ending work in process
Direct materials (3,000 x 100%)………...…3,000 EUP
Conversion (3,000 x 25%)…………..……….
__________ 750 EUP
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Chapter 20 – Process Costing
Direct
Conversio
Cost per EUP…………………..………..………...$12.50 per
EUP
$17.48 per
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
20–1124
Education.
Direct
Materials
$60,000
Direct
Labor
$12,000
Factory
Overhead
$15,000
Costs transferred
Ending Work in
Total costs in process in
Beginning Work in
Process
$7,500
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Education.
(5) $254,400
Cost of Goods Sold
$231,900
(6) $22,500
Chapter 20 – Process Costing
Exercise 20-19 (Continued)
Total manufacturing costs added 87,000
Total costs in process in punching department $ 94,500
(2) Total costs in process in punching department $ 94,500
Less ending work in process 6,000
Costs transferred to bending $ 88,500
Direct labor added 30,750
Factory overhead added 36,900
Costs transferred from punching 88,500
Total costs added (from above) $239,400
Direct materials added = $239,400-$30,750-$36,900-$88,500
Add costs transferred to finished goods 236,400
Cost of goods available for sale $254,400
(6) Cost of goods available for sale $254,400
Less ending inventory [?]
Cost of goods sold $231,900
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Chapter 20 – Process Costing
Exercise 20-20 (30 minutes)
1.
Units to account for Units Accounted For
2. and 3.
Equivalent Units of Production (EUP)
Direct
Materials
Conversion
Units completed and transferred out.….............
23,000 EUP 23,000 EUP
4. and 5.
Cost per EUP
Direct
Materials Conversion
Costs of beginning work in process………. $ 45,000 $ 56,320
Costs incurred this period…………….………. 375,000 341,000
Cost per equivalent unit of production…….. $14.00 per
EUP
per EUP
[Continued on next page]Exercise 20-20 (concluded)
6.
Costs transferred out
7.
Cost of ending work in process
20-1127
Chapter 20 – Process Costing
Direct materials [$14.00 per EUP x 7,000 EUP]......... 98,000
Exercise 20-21 (10 minutes)
1. Raw Materials Inventory ……………………………..………...80,000
Accounts Payable ……………………………………………. 80,000
Purchased materials on credit.
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