B. Ex. 18.6 a.
b.
Direct
Materials Conversion
2,000
3,000
30,000 30,000
1,800
B. Ex. 18.7
Direct
Materials Conversion
0
(7,200)
Direct materials (5,000 units require 40% to complete)
Conversion (5,000 units require 60% to complete)
To start ending inventory in process, March 31:
To start and complete 30,000 units in March:
To finish beginning inventory in process, March 1:
Direct materials (2,000 units 90% complete)
$12 per equivalent unit of direct material
$15 per equivalent unit of conversion
Computations:
Input resources required
Less:
Equivalent units to finish beginning inventory:
Conversion (12,000 units require 60% to complete)
Direct materials (12,000 units require 0% to complete)
B. Ex. 18.8 $ 50,000
Beginning work in process, September 1
Costs incurred to complete beginning work in
SOLUTIONS TO EXERCISES
Ex. 18.1 a.
b.
Ex. 18.2 a.
Direct Materials
Beg. Work in Process 0
Process costing
Conversion costs
Equivalent Units Produced in January
Labor and
Overhead
0
Ex. 18.3 a. 159,000
89,750
28,975
40,275
159,000
c. 250,000
250,000
120,000
120,000Finished Goods Inventory ……………………
To record the cost of the 10,000 units sold in June at a
unit cost of $12.
To record the transfer of 13,250 completed units to
finished goods during June at a unit cost of $12
($159,000/13,250 units
Accounts Receivable ………………………………..
To record the sale of 10,000 units in June at $25 per
unit.
Cost of Goods Sold ………………………………….
Sales ……………………………………………
Work in Process Inventory …………………..
To record the costs assigned to production during
June.
Work in Process Inventory ………………………..
Direct Materials ………………………………
Direct Labor …………………………………..
Manufacturing Overhead …………………….
Part I. Physical Flow Total Units
Inputs:
•Ending WIP -0–
Units accounted for: 13,250
Part II. Equivalent Units Direct Materials Conversion
Based on monthly input:
•Beginning WIP -0- -0-
•Units started 13,250 13,250
Equivalent units of input 13,250 13,250
Based on monthly output:
Part III. Cost Per Equivalent Unit Total Unit Cost Direct Materials Conversion
Part IV. Total Cost Assignment Total Costs Direct Materials Conversion
Costs to account for:
•Cost of beginning WIP $ -0-
•Cost added during the period 159,000
Total cost to account for $159,000
Costs accounted for:
•Cost of goods transferred
Beginning WIP last period $ -0- $ -0- $ -0-
a13,250 EU @ $6.7736 = $89,750
Ex. 18.4 Shamrock Industries
Production Cost Report
For the Month of June
Ex. 18.5
a.
March
Beg. WIP 4,900 (7,000 × .7)
Equivalent full units of production:
April
1,920 (4,800 × .4)
Ex. 18.6
a. 0
Beginning work in process, January 1
a.
b. 0
11,000
c. Cut Direct Trim
Materials Materials Conversion
00 0
8,000 8,000 8,000
3,000
d. Cut Direct Trim Conversion
Materials Materials Costs
To start and complete 8,000 units in January
100% complete)
To start ending inventory in process on January 31:
Cut material transferred in (3,000 units,
Ex. 18.7
Input resources required
To finish beginning inventory (there was none)
The number of units started by the Finishing Department equals the number of units transferred
in January from the Cutting Department, or 11,000 (see Exercise 18.6, part a).
Beginning work in process, January 1
Units started (transferred in) during January
Note: All of the units transferred were started and completed in January.
Ex. 18.8
a.
11,400
d. Mixed Direct Conversion
Materials Materials Costs
57,000
34,185
Ex. 18.9
One gallon of mix is required for each cake Baked by the Baking Department.
In August, 11,400 gallons of mix were transferred in (see Ex. 18.8, part a. ).
Units (cakes) started:
(see Ex. 18.8, part d)
Cost of batter mix transferred in
Cost of direct materials incurred in August