17-31
SOLUTION EXHIBIT 17-34B
Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to
Units Completed and to Units in Ending Work in Process;
FIFO Method of Process Costing,
Testing Department of Larsen Company for October 2012.
Total
Production
Costs
Transferred-in
Costs
Direct
Materials
Conversion
Costs
(Step 3) Work in process, beginning (given)
$ 3,717,335
$ 2,881,875
$ 0
$ 835,460
Costs added in current period (given)
21,395,850
7,735,250
9,704,700
3,955,900
Total costs to account for
$25,113,185
$10,617,125
$9,704,700
$4,791,360
(Step 4) Costs added in current period
$ 7,735,250
$9,704,700
$3,955,900
Divide by equivalent units of work done in
current period (Solution Exhibit 17–34A)
22,500
26,300
23,270
Cost per equiv. unit of work done in current period
$ 343.79
$ 369.00
$ 170.00
(Step 5) Assignment of costs:
Completed and transferred out (26,300 units):
Work in process, beginning (7,500 units)
Costs added to beg. work in process in current period
$ 3,717,335
3,150,000
$2,881,875 + $0 + $835,460
(0* $343.79) + (7,500* $369.00) + (2,250* $170.00)
Total from beginning inventory
Started and completed (18,800 units)
Total costs of units completed & transferred out
Work in process, ending (3,700 units)
6,867,335
16,596,431
23,463,766
1,649,419
(18,800† $343.79) + (18,800† $369.00) + (18,800† $170.00)
(3,700# $343.79) + (0# $369.00) + (2,220# $170.00)
Total costs accounted for
$25,113,185
$10,617,125
+ $9,704,700
+ $4,791,360
*Equivalent units used to complete beginning work in process from Solution Exhibit 17-34A, Step 2.
†Equivalent units started and completed from Solution Exhibit 17-34A, Step 2.
#Equivalent units in ending work in process from Solution Exhibit 17-34A, Step 2.
17-32
17-35 (25 min.) Weighted-average method.
Solution Exhibit 17-35A shows equivalent units of work done to date of:
Direct materials 625 equivalent units
Conversion costs 525 equivalent units
Note that direct materials are added when the Assembly Department process is 10%
17-33
SOLUTION EXHIBIT 17-35B
Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit,
and Assign Total Costs to Units Completed and to Units in Ending Work in Process;
Weighted-Average Method of Process Costing, Assembly Department of Ashworth, April 2012.
Total
Production
Costs
Direct
Materials
Conversion
Costs
(Step 3) Work in process, beginning (given)
$ 2,653
$ 1,665
$ 988
Costs added in current period (given)
29,496
17,640
11,856
Total costs to account for
$32,149
$19,305
$12,844
(Step 4) Costs incurred to date
$19,305
$12,844
Divide by equivalent units of work done to
date (Solution Exhibit 17-35A)
585
494
Cost per equivalent unit of work done to date
$ 33
$ 26
(Step 5) Assignment of costs:
Completed and transferred out (455 units)
$26,845
(455* $33) + (455* $26)
Work in process, ending (130 units)
5,304
(130† $33) + (39† $26)
Total costs accounted for
$32,149
$19,305
+ $12,844
*Equivalent units completed and transferred out from Solution Exhibit 17-35A, Step 2.
†Equivalent units in ending work in process from Solution Exhibit 17-35A, Step 2.
17-34
1. Work in Process–– Assembly Department 17,640
2. Work in Process–– Assembly Department 11,856
3. Work in Process––Finishing Department 26,845
Work in Process–– Assembly Department 26,845
1. Direct materials 17,640 Work in Process––Finishing 26,845
17-37 (20 min.) FIFO method (continuation of 17-35).
The equivalent units of work done in April 2012 in the Assembly Department for direct materials
and conversion costs are shown in Solution Exhibit 17-37A.
Solution Exhibit 17-37B summarizes the total Assembly Department costs for April 2012,
SOLUTION EXHIBIT 17-37A
Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units;
FIFO Method of Process Costing, Assembly Department of Ashworth Handcraft for April 2012.
(Step 1)
(Step 2)
Equivalent Units
Flow of Production
Physical
Units
Direct
Materials
Conversion
Costs
Work in process, beginning (given)
Started during current period (given)
To account for
95
490
585
(work done before current period)
Completed and transferred out during current period:
From beginning work in process§
95
(100% − 100%); 95
(100% − 40%)
95
0
57
Started and completed
455
100%; 455
100%
360†
360
360
Work in process, ending* (given)
130
100%; 130
30%
130
130
39
Accounted for
585
Equivalent units of work done in current period
490
456
§Degree of completion in this department: direct materials, 100%; conversion costs, 40%.
†455 physical units completed and transferred out minus 95 physical units completed and transferred out from
$ 988
Costs added in current period (given)
11,856
Total costs to account for
$11,856
period
$ 26
Completed and transferred out (455 units):
1. Solution Exhibit 17–38A computes the equivalent units of work done to date in the
Binding Department for transferred-in costs, direct materials, and conversion costs.
method.
2. Journal entries:
a. Work in Process–– Binding Department 129,600
Work in Process––Printing Department 129,600
Cost of goods completed and transferred out
during April from the Printing Department
SOLUTION EXHIBIT 17-38B
Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to
Units Completed and to Units in Ending Work in Process;
Weighted-Average Method of Process Costing,
1. Solution Exhibit 17-39A calculates the equivalent units of work done in April 2012 in the
Binding Department for transferred-in costs, direct materials, and conversion costs.
Solution Exhibit 17-39B summarizes total Binding Department costs for April 2012,
calculates the cost per equivalent unit of work done in April 2012 in the Binding Department for
2. The equivalent units of work done in beginning inventory is: Transferred-in costs, 1,050
100% = 1,050; direct materials, 1,050 0% = 0; and conversion costs, 1,050 50% = 525. The