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30 Minutes, Easy PROBLEM 18.2
A
SUN APPLIANC
E
a. (1) $45 [($150,000 + $12,000 + $18,000) ÷ 4,000 units]
30 Minutes, Medium PROBLEM 18.3A
SUN APPLIANCE
Part I. Physical Flow Total Units
Inputs:
•Beginning WIP -0-
Part II. Equivalent Units Direct Materials Conversion
Based on monthly input:
•Beginning WIP -0- -0-
•Units started 4,000 4,000
Equivalent units of input 4,000 4,000
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 300,000 246,000 54,000
Total cost to account for $300,000 $246,000 $54,000
Costs accounted for:
•Cost of goods transferred
Beginning WIP last period $ -0- $ -0- $ -0-
Beginning WIP this period -0- -0- -0-
PROBLEM 18.4
A
TOLL HOUSE
a. Work in Process: Mixing Dept. 12,600
Materials Inventor
y
3,600
Direct Labo
r
3,000
Manufacturing Overhead 6,000
Summar
y
of costs incurred in mixin
g
14,000 lbs.
of cookie dough in May. Cost per lb., $0.90
(
$12,600 ÷ 14,000 lbs.
)
.
To record transfer of 14,000 lbs. of cookie dou
g
h
to the baking dept. during May.
Summary of costs incurred in baking department
in baking 4,000 gross of cookies in May.
Cost per gross, $3.45 ($13,800 ÷ 4,000 gross).
30 Minutes, Medium
35 Minutes, Medium PROBLEM 18.5
A
BADGERSIZE COMPAN
Y
a. Direct
Materials Conversion
016,000
b. Direct Conversion
Materials Costs
Conversion (20,000 units require 80% to complete)
Input resources required
To finish beginning inventory, August 1:
Direct materials (20,000 units require 0% to complete)
**20,000 units in beginning inventory + 50,000 units started - 60,000 units transferred = 10,000
units in ending inventory.
30 Minutes, Medium PROBLEM 18.6A
BADGERSIZE COMPANY
a. Production Cost Report
Part I. Ph
y
sical Flow Total Units
Inputs:
•Beginning WIP 20,000
•Started 50,000
Units to account for 70,000
Outputs:
Part II. E
q
uivalent Units Direct Materials Conversion
Consumed
Part III. Cost Per E
q
uivalent Unit Total Unit Cost Direct Materials Conversion
Forming Department, Month of August
PROBLEM 18.6A
BADGERSIZE COMPANY (concluded)
Total Costs Direct Materials Conversion
$104,000
402,000
$506,000
$104,000 $ 80,000 $ 24,000
64,000 -0- 64
,
000a
b. Management can compare production cost reports from month to month to help control
costs and assess efficiency of their processes. For example, the equivalent units can be
BWIP, August 1
To finish BWIP
d10,000 EU @ $3.00 = $30,000
e7,000 EU @ $4.00 = $28,000
a16,000 EU @ $4.00 = $64,000
b40,000 EU @ $3.00 = $120,000
c40,000 EU @ $4.00 = $160,000
Costs accounted for:
•Cost of goods transferred
Total cost to account for
Part IV. Total Cost Assignment
Costs to account for
•Cost of beginning WIP
•Cost added during the period
50 Minutes, Strong PROBLEM 18.7
A
HOUND HAVENS
a.
(1) 2,800
(2) Direct
Materials Conversion
(4) 1,190,000
Work in Process: Molding Department 1,190,000
44,520$
631,120 514,360
Total cost of units transferred 1,190,000$
April conversion (46,760 equivalent units × $11)
April direct materials (45,080 equivalent units × $14)
Cost of beginning inventory, April 1 ($33,340 + $11,180)
Department in April:
To record the transfer of 47,600 units to the Finishing
Work in Process: Finishing Department
To finish units in process on April 1:
Requirements for the Molding Department in April
Flow of physical units: Molding Department
Units in beginning inventory, April 1
Input resources
PROBLEM 18.7
A
HOUND HAVENS (continued)
(5) 38,080$ 7,480
Work in Process: Molding Department, April 30
Direct materials (2,720 equivalent units × $14)
(4) 1,922,800
Work in Process: Finishing Department 1,922,800
Finished Goods Inventory
To record the transfer of 50,600 units
to the Finished Goods
50 Minutes, Strong PROBLEM 18.8
A
WILSON DYNAMICS
a.
1. 5,000
2. Direct
Materials Conversion
03,000
5. Work in Process: Forging Department, July 31
Direct materials (8,000 equivalent units × $9) 72,000$
Conversion (6,000 equivalent units × $8) 48,000
Ending inventory in process, July 31 120,000$
Requirements for the Forging Department in July
Flow of physical units: Forging Department
Units in beginning inventory, July 1
To finish units in process on July 1:
Input resources
Conversion (5,000 units require 60% to complete)
Direct materials (5,000 units require 0% to complete)
