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Exercise 4-10 (10 minutes)
Weighted-Average Method
Materials
Labor &
Overhead
Pounds transferred to the Packing Department
during July* ......................................................
377,000
377,000
Work in process, July 31:
Materials: 25,000 pounds × 100% complete .......
25,000
Labor and overhead:
25,000 pounds × 60% complete ......................
15,000
Equivalent units of production ..............................
402,000
392,000
*22,000 + 380,000 – 25,000 = 377,000
Exercise 4-12 (20 minutes)
Weighted-Average Method
1. Computation of equivalent units in ending inventory:
Materials
Labor
Overhead
Units in ending inventory ..........
3,000
3,000
3,000
Percent completed ...................
80%
60%
60%
Equivalent units of production ...
2,400
1,800
1,800
2. Cost of ending work in process inventory and units transferred out:
Materials
Labor
Overhead
Total
Ending work in process inventory:
Equivalent units of
production .................
2,400
1,800
1,800
Cost per equivalent unit
$14.00
$3.20
$6.40
Cost of ending work in
process inventory .......
$33,600
$5,760
$11,520
$50,880
Units completed and transferred out:
Units transferred to the
next department .........
25,000
25,000
25,000
Cost per equivalent unit
$14.00
$3.20
$6.40
Cost of units completed
and transferred out .....
$350,000
$80,000
$160,000
$590,000
3. Cost reconciliation:
Total cost to be accounted for ...........................
$640,880
Costs accounted for as follows:
Cost of ending work in process inventory ......
$ 50,880
Cost of units completed and transferred out ..
590,000
Total cost accounted for ...............................
$640,880
Supplement
FIFO Method
Exercise 4S-1 (10 minutes)
FIFO Method
Materials
Conversion
To complete beginning work in process:
Materials: 30,000 units × (100% − 65%) .........
10,500
Conversion: 30,000 units × (100% − 30%) ......
21,000
Units started and completed during October* ......
160,000
160,000
Ending work in process:
Materials: 15,000 units × 80% complete ..........
12,000
Conversion: 15,000 units × 40% complete .......
6,000
Equivalent units of production ............................
182,500
187,000
*
175,000 units started – 15,000 units in ending work in process
= 160,000 units started and completed
Exercise 4S-2 (10 minutes)
FIFO method
Materials
Labor
Overhead
Cost added during May (a) ................
$193,320
$62,000
$310,000
Equivalent units of production (b) .....
27,000
25,000
25,000
Cost per equivalent unit (a) ÷ (b)......
$7.16
$2.48
$12.40
Cost per equivalent unit for materials
$ 7.16
Cost per equivalent unit for labor ......
2.48
Cost per equivalent unit for overhead
12.40
Total cost per equivalent unit ............
$22.04
Exercise 4S-3 (15 minutes)
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production ...............
400
200
Cost per equivalent unit ........................
$2.32
$0.75
Cost of ending work in process inventory
$928
$150
$1,078
Units transferred out:
Cost in beginning inventory ...................
$3,200
$650
$3,850
Cost to complete the units in beginning inventory:
Equivalent units of production required
to complete the beginning inventory
600
1,200
Cost per equivalent unit ......................
$2.32
$0.75
Cost to complete the units in beginning
inventory .......................................
$1,392
$900
$2,292
Cost of units started and completed this period:
Units started and completed this period
(26,000 units completed and
transferred to the next department
– 2,000 units in beginning work in
process inventory) ..........................
24,000
24,000
Cost per equivalent unit ......................
$2.32
$0.75
Cost of units started and completed
this period .....................................
$55,680
$18,000
$73,680
Total cost of units transferred out ..........
$79,822
Exercise 4S-4 (10 minutes)
Mixing Department
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory .
$ 1,460
Costs added to production during the period .
36,540
Total cost to be accounted for ......................
$38,000
Costs accounted for as follows:
Cost of ending work in process inventory ......
$ 3,120
Cost of units completed and transferred out ..
34,880
*
Total cost accounted for ...............................
$38,000
Cost of units
completed and = $1,460 + $36,540 - $3,120
transferred out
Cost of units
completed and = $34,880
transferred out
Exercise 4S-5 (10 minutes)
Materials
Conversion
To complete beginning work in process:
Materials: 500 units x (100% – 80%) .................
100
Conversion: 500 units x (100% – 40%) ..............
300
Units started and completed during the period
(153,600 units started – 400 units in ending
inventory) .........................................................
153,200
153,200
Ending work in process
Materials: 400 units x 75% complete ..................
300
Conversion: 400 units x 20% complete ...............
80
Equivalent units of production ................................
153,600
153,580
Exercise 4S-6 (15 minutes)
FIFO Method
Materials
Labor &
Overhead
To complete the beginning work in process:
Materials: 20,000 pounds × (100% − 100%) ........
0
Labor and overhead:
20,000 pounds × (100% − 30%) ......................
14,000
Pounds started and completed during July* .............
355,000
355,000
Ending work in process:
Materials: 25,000 pounds × 100% complete .........
25,000
Labor and overhead:
25,000 pounds × 60% complete ........................
15,000
Equivalent units of production ................................
380,000
384,000
*
380,000 pounds started – 25,000 pounds in ending work in process
inventory = 355,000 pounds started and completed this month
Exercise 4S-7 (20 minutes)
FIFO Method
1.
Materials
Labor
Overhead
To complete beginning work in process:
Materials: 5,000 units ×
(100% − 80%) ..............................
1,000
Labor: 5,000 units ×
(100% − 60%) ..............................
2,000
Overhead: 5,000 units ×
(100% − 60%) ..............................
2,000
Units started and completed during the
period* .............................................
37,000
37,000
37,000
Ending work in process:
Materials: 8,000 units × 75% .............
6,000
Labor: 8,000 units × 50% .................
4,000
Overhead: 8,000 units × 50% ...........
4,000
Equivalent units of production ..............
44,000
43,000
43,000
*
45,000 units started into production – 8,000 units in ending work
in process = 37,000 started and completed
2.
Materials
Labor
Overhead
Cost added during the period (a) ..........
$52,800
$21,500
$32,250
Equivalent units of production (b) .........
44,000
43,000
43,000
Cost per equivalent unit (a) ÷ (b) .........
$1.20
$0.50
$0.75
Exercise 4S-8 (15 minutes)
FIFO Method
1.
Tons of Pulp
Work in process, June 1 ..........................................
20,000
Started into production during the month .................
190,000
Total tons in process ...............................................
210,000
Deduct work in process, June 30 ..............................
30,000
Completed and transferred out during the month ......
180,000
2.
Equivalent Units
Materials
Labor and
Overhead
To complete beginning work in process:
Materials: 20,000 tons × (100% − 90%)
2,000
Labor and overhead: 20,000 tons ×
(100% − 80%) ...................................
4,000
Units started and completed during the
month* .................................................
160,000
160,000
Ending work in process:
Materials: 30,000 tons × 60% complete .
18,000
Labor and overhead:
30,000 tons × 40% complete ..............
12,000
Equivalent units of production ...................
180,000
176,000
*
190,000 tons started into production – 30,000 tons in ending
work in process = 160,000 tons started and completed
Exercise 4S-9 (45 minutes)
FIFO Method
1. Computation of the total cost per equivalent unit of production:
Cost per equivalent unit of production for material .............
$25.40
Cost per equivalent unit of production for conversion .........
18.20
Total cost per equivalent unit of production .......................
$43.60
2. Computation of equivalent units in ending inventory:
Materials
Conversion
Units in ending inventory (a) ...................
300
300
Percentage completed (b) .......................
70
%
60
%
Equivalent units of production (a) × (b) ...
210
180
3. Computation of equivalent units required to complete the beginning
inventory:
Materials
Conversion
Units in beginning inventory (a) ..............
400
400
Percentage needed to complete
production of beginning inventory (b) ...
20
%
60
%
Equivalent units of production (a) × (b) ...
80
240
4.
Units transferred to the next department ............
3,100
Units from the beginning inventory .....................
400
Units started and completed during the period ....
2,700
Exercise 4S-9 (continued)
5.
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production ................................
210
180
Cost per equivalent unit ................................
$25.40
$18.20
Cost of ending work in process
inventory ................................................................
$5,334
$3,276
$8,610
Units transferred out:
Cost from the beginning work in
process inventory ................................
$8,120
$2,920
$11,040
Cost to complete the units in beginning
work in process inventory:
Equivalent units of production
required to complete the units in
beginning inventory ................................
80
240
Cost per equivalent unit ................................
$25.40
$18.20
Cost to complete the units in
beginning inventory ................................
$2,032
$4,368
$6,400
Cost of units started and completed
this period:
Units started and completed this
period ................................................................
2,700
2,700
Cost per equivalent unit ................................
$25.40
$18.20
Cost of units started and completed
this period ................................................................
$68,580
$49,140
$117,720
Total cost of units transferred out ................................
$135,160
Problem 4S-10A (45 minutes)
FIFO method
1.
Equivalent Units of Production
Materials
Conversion
To complete beginning work in process:
Materials: 10,000 units x (100% − 100%) .....
0
Conversion: 10,000 units x (100% − 30%) ....
7,000
Units started and completed during the period
(170,000 units started − 20,000 units in
ending inventory) ..........................................
150,000
150,000
Ending work in process:
Materials: 20,000 units x 100% complete ......
20,000
Conversion: 20,000 units x 40% complete .....
8,000
Equivalent units of production ...........................
170,000
165,000
2.
Cost per Equivalent Unit
Materials
Conversion
Cost added during the period (a) ..............
$139,400
$244,200
Equivalent units of production (b) .............
170,000
165,000
Cost per equivalent unit (a) ÷ (b) .............
$0.82
$1.48
3. See the next page.
4.
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
($8,500 + $4,900) .............................................
$ 13,400
Costs added to production during the period
($139,400 + $244,200) ......................................
383,600
Total cost to be accounted for ................................
$397,000
Costs accounted for as follows:
Cost of ending work in process inventory ................
$ 28,240
Costs of units transferred out .................................
368,760
Total cost accounted for ........................................
$397,000
Problem 4S-10A (continued)
3.
Costs of Ending Work in Process Inventory and Units Transferred Out
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production .................................................
20,000
8,000
Cost per equivalent unit ..........................................................
$0.82
$1.48
Cost of ending work in process inventory .................................
$16,400
$11,840
$28,240
Units transferred out:
Cost in beginning work in process inventory ............................
$8,500
$4,900
$13,400
Cost to complete the units in beginning work in process inventory:
Equivalent units of production required to complete the
beginning inventory ........................................................
0
7,000
Cost per equivalent unit .....................................................
$0.82
$1.48
Cost to complete the units in beginning inventory ................
$0
$10,360
$10,360
Cost of units started and completed this period:
Units started and completed this period ..............................
150,000
150,000
Cost per equivalent unit .....................................................
$0.82
$1.48
Cost of units started and completed this period ...................
$123,000
$222,000
$345,000
Cost of units transferred out ...................................................
$368,760
Problem 4S-11A (45 minutes)
1.
Equivalent Units of Production
Materials
Conversion
To complete beginning work in process:
Materials: 20,000 units x (100% − 100%) .....
0
Conversion: 20,000 units x (100% − 75%) ....
5,000
Units started and completed during the period
(180,000 units started − 40,000 units in
ending inventory) ..........................................
140,000
140,000
Ending work in process:
Materials: 40,000 units x 100% complete ......
40,000
Conversion: 40,000 units x 25% complete .....
10,000
Equivalent units of production ...........................
180,000
155,000
2.
Cost per Equivalent Unit
Materials
Conversion
Cost added during the period (a) ..............
$334,800
$238,700
Equivalent units of production (b) .............
180,000
155,000
Cost per equivalent unit (a) ÷ (b) .............
$1.86
$1.54
3. See the next page.
4.
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
($25,200 + $24,800) ..........................................
$ 50,000
Costs added to production during the period
($334,800 + $238,700) ......................................
573,500
Total cost to be accounted for ................................
$623,500
Costs accounted for as follows:
Cost of ending work in process inventory ................
$ 89,800
Costs of units transferred out .................................
533,700
Total cost accounted for ........................................
$623,500
Problem 4S-11A (continued)
3.
Costs of Ending Work in Process Inventory and Units Transferred Out
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production .................................................
40,000
10,000
Cost per equivalent unit ..........................................................
$1.86
$1.54
Cost of ending work in process inventory .................................
$74,400
$15,400
$89,800
Units transferred out:
Cost in beginning work in process inventory ............................
$25,200
$24,800
$50,000
Cost to complete the units in beginning work in process inventory:
Equivalent units of production required to complete the
beginning inventory ........................................................
0
5,000
Cost per equivalent unit .....................................................
$1.86
$1.54
Cost to complete the units in beginning inventory ................
$0
$7,700
$7,700
Cost of units started and completed this period:
Units started and completed this period ..............................
140,000
140,000
Cost per equivalent unit .....................................................
$1.86
$1.54
Cost of units started and completed this period ...................
$260,400
$215,600
$476,000
Cost of units transferred out ...................................................
$533,700
Problem 4S-12A (60 minutes)
1.
Transferred In
Materials
Conversion
To complete beginning work in process:
Transferred in: 450 units × (100% − 100%) ..................
0
Materials: 450 units × (100% − 100%) .........................
0
Conversion: 450 units × (100% − 60%)........................
180
Units started and completed during the period (1,950 units
started − 600 units in ending inventory) .........................
1,350
1,350
1,350
Ending work in process:
Transferred in: 600 units x 100% complete
600
Materials: 600 units x 0% complete ..............................
0
Conversion: 600 units x 35% complete ..........................
210
Equivalent units of production ...........................................
1,950
1,350
1,740
Transferred In
Materials
Conversion
Cost added during the period (a) .......................................
$17,940
$6,210
$13,920
Equivalent units of production (b) ......................................
1,950
1,350
1,740
Cost per equivalent unit (a) ÷ (b) ......................................
$9.20
$4.60
$8.00
Problem 4S-12A (continued)
Transferred In
Materials
Conversion
Total
Ending work in process inventory:
Equivalent units of production ..........................
600
0
210
Cost per equivalent unit ...................................
$9.20
$4.60
$8.00
Cost of ending work in process inventory ..........
$5,520
$0
$1,680
$7,200
Units transferred out:
Cost in beginning work in process inventory .....
$4,068
$1,980
$2,160
$8,208
Cost to complete units in beginning work in
process inventory:
Equivalent units of production required to
complete the beginning inventory (see
above) ....................................................
0
0
180
Cost per equivalent unit ..............................
$9.20
$4.60
$8.00
Cost to complete units in beginning
inventory .................................................
$0
$0
$1,440
$1,440
Cost of units started and completed this period:
Units started and completed this period .......
1,350
1,350
1,350
Cost per equivalent unit ..............................
$9.20
$4.60
$8.00
Cost of units started and completed this
period .....................................................
$12,420
$6,210
$10,800
$29,430
Cost of units transferred out ............................
$39,078
2. The unit cost in the report prepared by the new assistant controller is high because none of the cost
