Title: Exercise 20-7
QA_Ori:
a. Purchased raw materials on credit at a cost of $52,000.
b. Used direct materials costing $42,000 in production.
QA_Edit:
a. Purchased raw materials on credit at a cost of $52,000.
b. Used direct materials costing $42,000 in production.
Title: Exercise 20-8
QA_Ori:
1. Units in beginning inventory……………………………………… 60,000
2. Equivalent units of production – weighted average
Equivalent Units of Production
Direct Direct
Materials Labor
Units completed & transferred out (300,000 x 100%)…………….300,000 300,000
Title: Exercise 20-9
QA_Ori:
1.
Cost per equivalent unit – Weighted average
Direct
Materials
Direct
Labor
Costs of beginning goods in process…………………………… $118,840 $ 47,890
EUP
EUP
2. Cost Assignment and Reconciliation – weighted average
Costs of units transferred out
Costs of ending goods in process
*Equals costs to account for of $1,666,730 ($968,840 + $697,890)
Title: Exercise 20-10
QA_Ori:
Equivalent units of production—FIFO
Direct Direct
Equivalent units of production Materials Labor
Units to complete beginning goods in process
Direct materials (60,000 x 40%)……………………………… 24,000
QA_Edit:
Equivalent units of production—FIFO
Title: Exercise 20-11
QA_Ori:
1. Cost per equivalent unit of direct materials and direct labor—FIFO
Direct Direct
Materials Labor
Costs incurred this period……………………………………….. $850,000 $650,000
EUP EUP
2. Assignment of costs to output of department—FIFO
Costs of goods transferred out
Cost of beginning goods in process inventory
Direct materials……………………………………………………. $118,840
*Equals costs to account for of $1,666,730 after a rounding difference of $336.
Title: Exercise 20-12
QA_Ori:
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
2. Beginning inventory is 50% complete with respect to materials.
Ending inventory is 75% complete with respect to materials.
Units of
EUP for Materials Product
3. Beginning inventory is 50% complete with respect to materials.
Ending inventory is 50% complete with respect to materials.
Units of
EUP for Materials Product
Title: Exercise 20-13
QA_Ori:
1. Beginning inventory is 100% complete with respect to materials.
Ending inventory is 100% complete with respect to materials.
EUP for Materials
To complete beginning work in process (24,000 EUP x 0%)…………… 0
2. Beginning inventory is 50% 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 50%)…………. 12,000
3. Beginning inventory is 50% complete with respect to materials.
Ending inventory is 50% complete with respect to materials.
Units of
EUP for Materials Product
To complete beginning work in process (24,000 EUP x 50%)…………. 12,000
Title: Exercise 20-14
QA_Ori:
Production
Warehouse
Key to solution of flowchart
To solve this problem, the missing items must be solved in reverse order: 4,3,2,1
(4) Cost of goods available for sale $ ?
(3) Beginning finished goods inventory $ 18,000
Plus cost of goods transferred to finished goods + ?
(2) Total costs in process in production $ ?
Less ending goods in process – 6,000
Beginning Goods
in Process
$17,250
Direct
Materials
(1) $126,600
Direct
Labor
$47,250
Factory
Overhead
$51,300
Total costs in process in
production department
(2) $242,400
Ending Goods in
Process
$6,000
Costs transferred
to Finished Goods
(3) $236,400
Beginning Finished
Goods Inventory
$18,000
Cost of Goods Available
For Sale
(4) $254,400
Ending Finished
Goods Inventory
$22,500
Cost of Goods
Sold
$231,900
(1) Beginning goods in process $ 17,250
Direct materials $ ?
QA_Edit:
Production
Warehouse
Beginning Goods
in Process
$17,250
Direct
Materials
(1) $126,600
Direct
Labor
$47,250
Factory
Overhead
$51,300
Total costs in process in
production department
(2) $242,400
Ending Goods in
Process
$6,000
Costs transferred
to Finished Goods
(3) $236,400
Beginning Finished
Goods Inventory
$18,000
Cost of Goods Available
For Sale
(4) $254,400
Ending Finished
Goods Inventory
$22,500
Cost of Goods
Sold
$231,900