Title: Problem 20-8B
QA_Ori:
Part 1: Equivalent units with respect to direct materials and direct labor
Direct Direct
Equivalent units of production (EUP) Materials Labor
Units to complete beginning goods in process
Direct materials (2,000 x 0%)…………………………… 0
Part 2
Cost per equivalent unit of production
Direct
Materials
Direct
Labor
Part 3: Assigning product costs to units
Cost assignment and reconciliation
Costs transferred out
Cost of beginning goods in process…………………………. $ 144,400
*Rounded to two decimal places. **This differs from the sum of the total direct materials cost and the
total direct labor costs ($770,000 + $2,066,400 = $2,836,400) due to rounding.
Part 4
MEMORANDUM
TO:
FROM:
DATE:
RE: Percentage of Completion Error Analysis
If the units in ending inventory are 75% complete instead of 25% with respect to
labor, the number of equivalent units in ending inventory with respect to labor is
Regarding financial statements, this error causes an overstatement of cost of goods
Title: Problem 20-9B
QA_Ori:
Part 1
BELDA CO.
Process Cost Summary – FIFO Method
For Month Ended March 31
Costs Charged to Production
Costs of beginning goods in process
Direct materials…………………………………………………………. $ 16,800
Unit cost information
Units to account for Units accounted for
0
Equivalent units of production
Direct
Materials
Direct Labor Factory
Overhead
Units to complete beginning goods in process
Direct materials (10,000 x 25%)……………. 2,500 EUP
[Continued on next page]
Cost per EUP
Direct
Materials
Direct Labor Factory
Overhead
Costs incurred this period…………………. $ 223,200 $ 352,560 $ 881,400
EUP
EUP
EUP
Cost assignment and reconciliation
Costs transferred out
Cost of beginning goods in process……………………………………. $ 114,520
Costs of units started and completed this period
Direct materials (210,000 EUP x $0.96 per EUP)………………..201,600
Costs of ending goods in process
Part 2
Mar. 31 Finished Goods Inventory…………………………………………1,486,960
Part 3
If equivalent units of production for the production department’s ending inventory
for March are overstated, then total equivalent units of production is also
overstated. This means the cost per equivalent unit for March is understated and
Title: Serial Problem 1
QA_Ori:
Features of job order and process costing follow.
Job order costing Process costing
Custom orders Repetitive operations
Title: Serial Problem 2
QA_Ori: Given the size of her company, and the types of products she sells,
Title: Comprehensive Problem
[Instructor note: General Ledger accounts are shown in Part 4.]
QA_Ori:
Part 1
(Using either weighted-average or FIFO)
July Journal Entries
a. Raw Materials Inventory …………………………………………..125,000
b. Goods in Process Inventory………………………………………52,440
c. Factory Payroll ……………………………………………………….227,250
d. Goods in Process Inventory………………………………………202,250
e. Factory Overhead ……………………………………………………80,000
f. Goods in Process Inventory………………………………………101,125