Ex. 18.9 (concluded)
e. 161,000
Work in Process: Baking Department 161,000
Finished Goods Inventory
To record the transfer of 11,500 cakes to Finished Goods
Inventory in August:
Ex. 18.10 (concluded)
c. Direct Conversion
Materials Costs
200,000$ 87,200$
÷ 50,000 ÷ 43,600
4$ 2$
Cost of direct materials and conversion incurred in May
Equivalent units of resources in May (see part b. )
Cost per equivalent unit of input resource in May
Ex. 18.11 (continued)
c. Cut Direct
Materials Materials Conversion
Cut materials (6,000 units, 0% to complete) 0
Direct materials (6,000 units require 40%
to complete) 2,400
Conversion (6,000 units require 20%
Cut materials (9,000 units 100% complete) 9,000
d. Cut Direct Conversion
Materials Materials Costs
288,000$
e. 360,000
Work in Process: Coating Department 360,000
Input resources required
To finish beginning inventory in process on May
Cost of cut mats transferred in
To start ending inventory in process on May 31
(see Ex. 18.10, part d)
Finished Goods Inventory
To record the transfer of 45,000 mat sets to Finished Goods
Ex. 18.11 (concluded)
c. Direct
Materials Conversion
0
Conversion (300 require 80% to complete) 240
Input resources required
To finish beginning inventory in process on June 1:
Direct materials (300 units require 0% to complete)
Ex. 18.12 (concluded)
e. 60,000
Work in Process: Painting Department 60,000
Work in Process: Pressing Department
To record the transfer of 1,500 units to the Painting
Department in June:
Ex. 18.14 (concluded)
b. Direct
Materials Conversion
180
Direct Conversion
Materials Costs
Step 1: Compute input resources required in September
Input resources required
Step 2: Compute equivalent costs per unit in September
To finish beginning inventory in process on September 1:
*1,500 units transferred 300 units in beginning inventory.
Direct materials (300 units require 60% to complete)
Ex. 18.15 (continued)
4,200
6,000 units in process × 70% complete
Equivalent units of conversion carried forward from January:
Ex. 18.15 (concluded)
d. February cost per equivalent unit of direct material* 3$
*Computations:
0
52,000
2,000
54,000
Step 1: Compute equivalent units of direct material
To start and complete 52,000 units in February (see part b)
To start 2,000 units in ending inventory (100% complete)
Step 2: Compute cost per equivalent unit
To finish beginning inventory on February
Equivalent units of direct material in February
6,000 units 100% complete (see part a)
SOLUTIONS TO PROBLEMS SET
A
20 Minutes, Easy PROBLEM 18.1
A
BRITE IDEAS
a.
5,000 (900)
4,100
Bod
y
Wirin
g
Materials Materials Conversion
Body materials
(900 units require 0% to complete) 0
Wiring materials
(900 units require 0% to complete) 0
Body materials (1,100 units 100% complete) 1,100
b.
Step 1: Determine flow of physical goods
Units transferred out in June
Beginning inventory in process, June 1
Units started and completed in June
Step 2: Determine equivalent units
Input resources required
To finish beginning inventory, June 1:
To start ending inventory in process on June 30:
Step 1: Determine flow of physical goods
PROBLEM 18.1
A
BRITE IDEAS (concluded)
Bod
y
Wirin
g
Materials Materials Conversion
Body materials
(1,100 units require 0% to complete) 0
Wiring materials
(1,100 units require 100% to complete) 1,100
Step 2: Determine equivalent units
Input resources required
To finish beginning inventory, July 1: