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Problem 4-13B (45 minutes)
1.
Equivalent Units of Production
Materials
Conversion
Transferred to next department* ......................
420,000
420,000
Ending work in process:
Materials: 33,000 units x 80% complete .........
26,400
Conversion: 33,000 units x 20% complete ......
6,600
Equivalent units of production ..........................
446,400
426,600
* Units transferred to the next department = Units in beginning work in
process + Units started into production − Units in ending work in
process = 73,000 + 380,000 − 33,000 = 420,000
2.
Cost per Equivalent Unit
Materials
Conversion
Cost of beginning work in process ................
$111,600
$ 55,800
Cost added during the period .......................
580,320
306,810
Total cost (a) ..............................................
$691,920
$362,610
Equivalent units of production (b) ................
446,400
426,600
Cost per equivalent unit, (a) ÷ (b) ...............
$1.55
$0.85
Problem 4-13B (continued)
3.
Cost of Ending Work in Process Inventory and Units Transferred Out
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production
(materials: 33,000 units x 80%
complete; conversion: 33,000
units x 20% complete) .......
26,400
6,600
Cost per equivalent unit .......
$1.55
$0.85
Cost of ending work in process
inventory ...........................
$40,920
$5,610
$46,530
Units completed and transferred out:
Units transferred to the next
department .......................
420,000
420,000
Cost per equivalent unit .......
$1.55
$0.85
Cost of units completed and
transferred out ...................
$651,000
$357,000
$1,008,000
4.
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
($111,600 + $55,800) ................................
$ 167,400
Costs added to production during the period
($580,320 + $306,810) ..............................
887,130
Total cost to be accounted for .......................
$1,054,530
Costs accounted for as follows:
Cost of ending work in process inventory ......
$ 46,530
Cost of units completed and transferred out ..
1,008,000
Total cost accounted for ...............................
$1,054,530
Problem 4-14B (45 minutes)
Weighted-Average Method
1.
Equivalent Units of Production
Materials
Conversion
Transferred to next department ........................
382,500
382,500
Ending work in process:
Materials: 90,000 units x 75% complete .........
67,500
Conversion: 90,000 units x 25% complete ......
22,500
Equivalent units of production ..........................
450,000
405,000
2.
Cost per Equivalent Unit
Materials
Conversion
Cost of beginning work in process ................
$ 31,500
$ 11,300
Cost added during the period .......................
337,500
239,800
Total cost (a) ..............................................
$369,000
$251,100
Equivalent units of production (b) ................
450,000
405,000
Cost per equivalent unit, (a) ÷ (b) ...............
$0.82
$0.62
3.
Applying Costs to Units
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production
67,500
22,500
Cost per equivalent unit .......
$0.82
$0.62
Cost of ending work in process
inventory ...........................
$55,350
$13,950
$69,300
Units completed and transferred out:
Units transferred to the next
department .......................
382,500
382,500
Cost per equivalent unit .......
$0.82
$0.62
Cost of units completed and
transferred out ...................
$313,650
$237,150
$550,800
Problem 4-14B (continued)
4.
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
($31,500 + $11,300) ..................................
$ 42,800
Costs added to production during the period
($337,500 + $239,800) ..............................
577,300
Total cost to be accounted for .......................
$620,100
Costs accounted for as follows:
Cost of ending work in process inventory ......
$ 69,300
Cost of units completed and transferred out ..
550,800
Total cost accounted for ...............................
$620,100
Problem 4-15B (45 minutes)
Weighted-Average Method
1.
Equivalent units of production
Materials
Conversion
Transferred to next department* ......................
307,000
307,000
Ending work in process:
Materials: 88,000 units x 100% complete .......
88,000
Conversion: 88,000 units x 70% complete ......
61,600
Equivalent units of production ..........................
395,000
368,600
2.
Cost per equivalent unit
Materials
Conversion
Cost of beginning work in process ................
$219,000
$ 88,000
Cost added during the period .......................
709,250
280,600
Total cost (a) ..............................................
$928,250
$368,600
Equivalent units of production (b) ................
395,000
368,600
Cost per equivalent unit, (a) ÷ (b) ...............
$2.35
$1.00
3.
Cost of ending work in process inventory and units transferred out
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production...
88,000
61,600
Cost per equivalent unit ...........
$2.35
$1.00
Cost of ending work in process
inventory ...............................
$206,800
$61,600
$268,400
Units completed and transferred out:
Units transferred to the next
department ...........................
307,000
307,000
Cost per equivalent unit ...........
$2.35
$1.00
Cost of units completed and
transferred out .......................
$721,450
$307,000
$1,028,450
Problem 4-16B (45 minutes)
Weighted-Average Method
1.
a.
Work in Process—Blending .............................................
154,600
Work in Process—Bottling ...............................................
45,000
Raw Materials ...........................................................
199,600
b.
Work in Process—Blending .............................................
79,200
Work in Process—Bottling ...............................................
17,200
Salaries and Wages Payable ......................................
96,400
c.
Manufacturing Overhead ................................................
716,000
Accounts Payable ......................................................
716,000
d.
Work in Process—Blending .............................................
489,000
Manufacturing Overhead ...........................................
489,000
Work in Process—Bottling ...............................................
110,000
Manufacturing Overhead ...........................................
110,000
e.
Work in Process—Bottling ...............................................
632,000
Work in Process—Blending ........................................
632,000
f.
Finished Goods ..............................................................
710,000
Work in Process—Bottling ..........................................
710,000
g.
Accounts Receivable .......................................................
1,360,000
Sales ........................................................................
1,360,000
Cost of Goods Sold .........................................................
640,000
Finished Goods .........................................................
640,000
Problem 4-16B (continued)
2.
Accounts Receivable
Raw Materials
(g)
1,360,000
Bal.
214,600
(a)
199,600
Bal.
15,000
Work in Process
Blending Department
Work in Process
Bottling Department
Bal.
33,500
(e)
632,000
Bal.
41,000
(f)
710,000
(a)
154,600
(a)
45,000
(b)
79,200
(b)
17,200
(d)
489,000
(d)
110,000
Bal.
124,300
(e)
632,000
Bal.
135,200
Finished Goods
Manufacturing Overhead
Bal.
14,000
(g)
640,000
(c)
716,000
(d)
599,000
(f)
710,000
Bal.
117,000
Bal.
84,000
Accounts Payable
Salaries and Wages Payable
(c)
716,000
(b)
96,400
Sales
Cost of Goods Sold
(g)
1,360,000
(g)
640,000
Problem 4-17B (60 minutes)
Weighted-Average Method
1. Computation of equivalent units in ending inventory:
Mixing
Materials
Conversion
Units transferred to the next department ........
60.0
60.0
60.0
Ending work in process:
Mixing: 5 units × 100% complete ..............
5.0
Materials: 5 units × 20% complete ............
1.0
Conversion: 5 units × 10% complete .........
0.5
Equivalent units of production ........................
65.0
61.0
60.5
2. Costs per equivalent unit:
Mixing
Materials
Conversion
Cost of beginning work in process inventory ....
$ 12,270
$ 100
$ 1,435
Cost added during the period .........................
138,530
11,185
74,190
Total cost ......................................................
$150,800
$11,285
$75,625
Equivalent units of production ........................
65.0
61.0
60.5
Cost per equivalent unit .................................
$2,320
$185
$1,250
Problem 4-17B (continued)
3. Costs of ending work in process inventory and units transferred out:
Mixing
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production ....................
5.0
1.0
0.5
Cost per equivalent unit .............................
$2,320
$185
$1,250
Cost of ending work in process inventory ....
$11,600
$185
$625
$12,410
Units completed and transferred out:
Units transferred to the next department ....
60
60
60
Cost per equivalent unit .............................
$2,320
$185
$1,250
Cost of units transferred out ......................
$139,200
$11,100
$75,000
$225,300
4. Cost reconciliation:
Cost to be accounted for:
Cost of beginning work in process inventory
($12,270 + $100 + $1,435) .......................
$ 13,805
Cost added to production during the period
($138,530 + $11,185 + $74,190) ...............
223,905
Total cost to be accounted for ......................
$237,710
Costs accounted for as follows:
Cost of ending work in process inventory ......
$ 12,410
Cost of units transferred out .........................
225,300
Total cost accounted for ...............................
$237,710
Solutions Manual Alternative Problems, Chapter 4 4-10
Problem 4-18B (30 minutes)
Weighted-Average Method
1.
Total units transferred to the next department ...
41,900
Less units in the May 1 inventory ......................
11,500
Units started and completed in May...................
30,400
2.
The equivalent units were:
Materials
Conversion
Transferred to next department ..................
41,900
41,900
Ending work in process:
Materials: 7,600 units x 75% complete .....
5,700
Conversion: 7,600 units x 50% complete ..
3,800
Equivalent units of production ....................
47,600
45,700
3.
The costs per equivalent unit were:
Materials
Conversion
Cost of beginning work in process ................
£ 23,460
£12,305
Cost added during the period .......................
83,164
46,648
Total cost (a) ..............................................
£106,624
£58,953
Equivalent units of production (b) ................
47,600
45,700
Cost per equivalent unit, (a) ÷ (b) ...............
£2.24
£1.29
4.
The ending work in process figure is verified as follows:
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production
(see above) .................................
5,700
3,800
Cost per equivalent unit .................
£2.24
£1.29
Cost of ending work in process
inventory .....................................
£12,768
£4,902
£17,670
5. Multiplying the unit cost figure of £3.53 per unit by 1,000 units does
not
provide a valid estimate of the incremental cost of processing an
