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Problem 20-6A (45 minutes)
1. Units in beginning inventory......................................... 37,500
2. Equivalent units of production—FIFO
Direct
Equivalent units of production—FIFO Materials Conversion
Units to complete beginning Work in Process
Direct materials (37,500 x 40%)................................. 15,000
3. Cost per equivalent unit of direct materials and conversion—FIFO
Direct
Cost per equivalent unit—FIFO Materials Conversion
Costs incurred this period...........................................$ 505,035 $ 396,568
Problem 20-6A (Concluded)
4. Assignment of costs to output of department—FIFO
Costs of goods transferred out
Cost of beginning work in process inventory............
Direct materials...........................................................$74,075.00
Conversion.................................................................. 28,493.00 $ 102,568.00
Direct materials (150,000 EUP x $2.58 per EUP)......387,000.00
Conversion (150,000 EUP x $2.17 per EUP)............. 325,500.00
Total cost of units started and completed................ 712,500.00
Total costs of goods transferred out........................... 902,593.00
Problem 20-7A (80 minutes)
Part 1
DENGO CO.—Roasting Department
Process Cost Summary – FIFO Method
For Month Ended October 31
Costs Charged to Production
Conversion......................................................................... 1,082,970 1,331,370
Total costs to account for................................................... $1,452,240
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
Direct materials (3,000 x 0%)............................. 0 EUP
Conversion (3,000 x 60%).................................. 1,800 EUP
[Continued on next page]Problem 20-7A (Continued)
Cost per EUP
Direct
Materials Conversion
Costs incurred this period.................. $ 248,400 $1,082,970
÷ EUP..................................................... ÷ 21,600 ÷ 22,920
Cost per EUP........................................ $11.50 per
EUP
$47.25 per
EUP
Cost assignment and reconciliation
Costs transferred out
Cost of beginning Work in Process........................... $ 120,870
Cost to complete beginning Work in Process
Costs of ending Work in Process
Direct materials (2,400 EUP x $11.50 per EUP)....... 27,600
Conversion (1,920 EUP x $47.25 per EUP).............. 90,720 118,320
Total costs accounted for........................................... $1,452,240
Part 2
Oct. 31 Work in Process Inventory—Blending.................................
1,333,920
departments.
Problem 20-7A (Concluded)
Part 3
If equivalent units of production for a production department's ending
inventory for October are understated, then total equivalent units of
production is also understated. This means the cost per equivalent unit for
PROBLEM SET B
Problem 20-1B (45 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Beginning work in process inventory.............................................. $156,000
Direct materials used in production................................................. 120,000
Direct labor used in production........................................................ 350,000
Overhead applied (75% of direct labor cost)................................... 262,500
Total production costs....................................................................... 888,500
Less ending finished goods inventory............................................ (198,000)
Cost of goods sold (b) ...................................................................... $600,500
Part 2: Summary journal entries
a.
June 30 Raw Materials Inventory ...............................................200,000
Accounts Payable .................................................... 200,000
Raw Materials Inventory ......................................... 42,000
Used indirect materials.
