156 Chapter 6
49. a. Gallons transferred out
242,000
Gallons in ending WIP
23,500
Total gallons to account for
265,500
Gallons in beginning WIP
(36,000)
Gallons started
229,500
b.
Material
Labor
Overhead
Beginning WIP Inventory
36,000
36,000
36,000
Started & completed
206,000
206,000
206,000
Ending WIP Inventory
23,500
3,525
2,350
WA EUP
265,500
245,525
244,350
Material
Labor
Overhead
BI costs
$ 183,510
$ 98,526
$ 78,273
Current costs
1,136,025
451,450
723,195
Total cost
$1,319,535
$ 549,976
$801,468
EUP–FIFO
÷ 265,500
÷ 245,525
÷ 244,350
Cost per EUP
$4.97
$2.24
$3.28
Transferred out = 242,000 × ($4.97 + $2.24 + $3.28) = 242,000 × $10.49 =
$2,538,580
c. DM (23,500 × $4.97)
$116,795
DL (3,525 × $2.24)
7,896
OH (2,350 × $3.28)
7,708
Total EI
$132,399
50. a. Delacroix Co.
Cost of Production Report
For the Month of March 2013
Production Data
Units
Material
Labor
Overhead
Beginning Inventory
800
Units started
11,400
Units to account for
12,200
Beginning WIP Inventory
800
800
800
800
Started & completed
11,000
11,000
11,000
11,000
Ending WIP Inventory
400
280
360
320
Units accounted for
12,200
12,080
12,160
12,120
Cost Data
Total
Material
Labor
Overhead
Beginning WIP Inventory
$ 21,138
$ 6,748
$ 8,680
$ 5,710
Current costs
505,422
259,012
58,200
188,210
Total cost to account for
$526,560
$265,760
$66,880
$193,920
Divided by EUP
÷ 12,080
÷ 12,160
÷ 12,120
Cost per EUP
$43.50
$22.00
$5.50
$16.00
Chapter 6 157
accessible website, in whole or in part.
Cost Assignment
Transferred out (11,800 units × $43.50)
$513,300
Ending Inventory:
Material (280 × $22)
$6,160
Labor (360 × $5.50)
1,980
Overhead (320 × $16)
5,120
13,260
Total cost accounted for
$526,560
b. Raw Material Inventory
XXX
Accounts Payable (for RM purchases)
XXX
WIP Inventory
259,012
Raw Material Inventory
259,012
WIP Inventory
58,200
Wages Payable
58,200
WIP Inventory
188,210
Factory Overhead Control
188,210
Factory Overhead Control
XXX
Various accounts (for actual OH)
XXX
Finished Goods Inventory
513,300
WIP Inventory
513,300
Cost of Goods Sold (for the cost of sales)
XXX
Finished Goods Inventory
XXX
c.
Raw Material Inventory
WIP Inventory
Beg.
XXX
Issued
259,012
Beg.
21,138
CGM
513,300
Purch.
XXX
DM
259,012
DL
58,200
OH
188,210
End.
XXX
End.
13,260
Wages Payable
FG Inventory
DL
58,200
Beg.
XXX
CGS
XXX
CGM
513,300
End.
XXX
Factory Overhead Control
Accounts Payable
Actual XXX
Applied 188,210
RM Purch. XXX
Cost of Goods Sold
CGS XXX
158 Chapter 6
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51. a.
Units
Material
Conversion
Beginning WIP Inventory
20,000
Units started
321,600
Units to account for
341,600
Beginning WIP Inventory
20,000
0
12,000
Started & completed
305,600
305,600
305,600
Ending WIP Inventory
16,000
16,000
12,800
Units accounted for
341,600
321,600
330,400
b.
Total
Material
Conversion
Beginning WIP cost
$ 53,580
Current cost
1,055,808
$778,272
$277,536
Total cost to account for
$1,109,388
Divided by EUP
÷ 321,600
÷ 330,400
Cost per EUP
$3.26
$2.42
$0.84
c. Beginning WIP Inventory
$53,580
Complete WIP
CC (12,000 × $0.84)
10,080
$ 63,660
Started & completed
(305,600 × $3.26)
996,256
Cost transferred out
$1,059,916
d. DM (16,000 × $2.42)
$38,720
CC (12,800 × $0.84)
10,752
Total cost of ending WIP Inventory
$49,472
52. a. Gallons transferred out
242,000
Gallons in ending WIP
23,500
Total gallons to account for
265,500
Gallons in beginning WIP
(36,000)
Gallons started
229,500
b.
Material
Labor
Overhead
Beginning WIP Inventory
0
16,200
10,800
Started & completed
206,000
206,000
206,000
Ending WIP Inventory
23,500
3,525
2,350
EUP––FIFO
229,500
225,725
219,150
Material
Labor
Overhead
Current costs
$1,136,025
$451,450
$723,195
EUP––FIFO
÷ 229,500
÷ 225,725
÷ 219,150
Cost per EUP
$4.95
$2.00
$3.30
Beginning WIP ($183,510 + $98,526 + $78,273) $360,309
Complete beginning WIP Inventory
DL (16,200 × $2.00)
$32,400
CC (10,800 × $3.30)
35,640
68,040
Total cost of BI transferred
$428,349
Chapter 6 159
c. Total cost per EUP = $4.95 + $2.00 + $3.30 = $10.25
Total cost of BI transferred
$ 428,349
Started & completed (206,000 × $10.25)
2,111,500
Total cost of goods completed
$2,539,849
d. $2,539,849 ÷ 242,000 = $10.50 (rounded)
e. DM (23,500 × $4.95)
$116,325
DL (3,525 × $2.00)
7,050
OH (2,350 × $3.30)
7,755
Total EI
$131,130
53. a. Delacroix Co.
Cost of Production Report
For the Month of March 2013
Production Data:
Units
Material
Labor
Overhead
Beginning inventory
800
Units started
11,400
Units to account for
12,200
Beginning WIP Inventory
800
440
280
480
Started & completed
11,000
11,000
11,000
11,000
Ending inventory
400
280
360
320
Units accounted for
12,200
11,720
11,640
11,800
Cost Data:
Total
Material
Labor
Overhead
Cost in BI
$ 21,138
Current costs
505,422
$259,012
$58,200
$188,210
Total cost to account for
$526,560
Divided by EUP
÷ 11,720
÷ 11,640
÷ 11,800
Cost per EUP
$43.05
$22.10
$5.00
$15.95
Cost Assignment
Transferred out:
Beginning WIP Inventory
$21,138
Cost to complete:
Material (440 × $22.10)
9,724
Labor (280 × $5.00)
1,400
Overhead (480 × $15.95)
7,656
$ 39,918
Started & completed (11,000 × $43.05)
473,550
Ending WIP Inventory:
Material (280 × $22.10)
$ 6,188
Labor (360 × $5.00)
1,800
Overhead (320 × $15.95)
5,104
13,092
Total cost accounted for
$526,560
160 Chapter 6
accessible website, in whole or in part.
of ending inventory.
54. a. Phunky Phingers
Cost of Production Report (WA Method)
For the Month of November 2013
Production Data:
Units
Beginning WIP Inventory
12,000
Units started
90,000
Units to account for
102,000
Units
Material
Labor
OH
Beginning WIP Inventory
12,000
12,000
12,000
12,000
Started & completed
70,000
70,000
70,000
70,000
Ending WIP Inventory
20,000
20,000
8,000
16,000
Units accounted for
102,000
102,000
90,000
98,000
Cost Data:
Total
Material
Labor
OH
Beginning WIP Inventory
$ 19,564
$ 13,020
$ 1,908
$ 4,636
Current costs
206,616
90,000
45,792
70,824
Cost to account for
$ 226,180
$103,020
$47,700
$75,460
Divided by EUP
÷ 102,000
÷ 90,000
÷ 98,000
Cost per EUP
$2.31
$1.01
$0.53
$0.77
Cost Assignment:
Transferred out (82,000 × $2.31)
$189,420
Ending inventory:
Material (20,000 × $1.01)
$20,200
Direct labor (8,000 × $0.53)
4,240
Overhead (16,000 × $0.77)
12,320
36,760
Total cost accounted for
$226,180
b. Phunky Phingers
Cost of Production Report (FIFO Method)
For the Month of November 2013
Production Data:
Units
Beginning WIP Inventory
12,000
Units started
90,000
Units to account for
102,000
Units
Material
Labor
Overhead
Beginning WIP Inventory
12,000
0
8,400
4,800
Started & completed
70,000
70,000
70,000
70,000
Ending WIP Inventory
20,000
20,000
8,000
16,000
Units accounted for
102,000
90,000
86,400
90,800
Chapter 6 161
Cost Data:
Total
Material
Labor
Overhead
Beginning WIP Inventory
$ 19,564
Current costs
206,616
$90,000
$45,792
$70,824
Cost to account for
$226,180
Divided by EUP
÷ 90,000
÷ 86,400
÷ 90,800
Cost per EUP
$2.31
$1.00
$0.53
$0.78
Cost Assignment:
Transferred out:
Beginning WIP Inventory
$19,564
Complete beginning WIP
DL (8,400 × $0.53)
4,452
OH (4,800 × $0.78)
3,744
$ 27,760
Started & completed (70,000 × $2.31)
161,700
Ending WIP Inventory:
Material (20,000 × $1.00)
$20,000
Direct labor (8,000 × $0.53)
4,240
Overhead (16,000 × $0.78)
12,480
36,720
Total cost accounted for
$226,180
55. a. Springtime Paints
Cost of Production Report
For Month Ended May 31, XXXX
Production data:
Units
Beginning WIP Inventory
4,000
Units started
21,000
Units to account for
25,000
DIRECT MATERIALS
Units
Chemicals
Cans
Conversion
Beginning WIP
Inventory
4,000
4,000
4,000
4,000
Started & completed
16,000
16,000
16,000
16,000
Ending WIP Inventory
5,000
5,000
0
4,000
Units accounted for
25,000
25,000
20,000
24,000
Cost data:
DIRECT MATERIALS
Total
Chemicals
Cans
Conversion
Beginning inventory
$ 51,900
$ 45,100
$ 0
$ 6,800
Current costs
281,900
228,900
7,000
46,000
Cost to account for
$333,800
$274,000
$ 7,000
$52,800
Divided by EUP
÷ 25,000
÷ 20,000
÷ 24,000
Cost per equivalent unit
$13.51
$10.96
$0.35
$2.20
162 Chapter 6
Cost assignment:
Transferred out ($13.51 × 20,000)
$270,200
Ending WIP
Chemicals (5,000 × $10.96)
$54,800
Conversion (4,000 × $2.20)
8,800
63,600
Total cost accounted for
$333,800
b. Springtime Paints
Cost of Production Report
For Month Ended May 31, XXXX
Production data:
Units
Beginning WIP
Inventory
4,000
Units started
21,000
Units to account for
25,000
DIRECT MATERIALS
Units
Chemicals
Cans
Conversion
Beginning WIP
Inventory
4,000
4,000
3,000
Started & completed
16,000
16,000
16,000
16,000
Ending WIP Inventory
5,000
5,000
0
4,000
Units accounted for
25,000
21,000
20,000
23,000
Cost data:
DIRECT MATERIALS
Total
Chemicals
Cans
Conversion
Beginning inventory
$ 51,900
Current costs
281,900
$228,900
$ 7,000
$46,000
Cost to account for
$333,800
Divided by EUP
÷ 21,000
÷ 20,000
÷ 23,000
Cost per equivalent unit
$13.25
$10.90
$0.35
$2.00
Cost assignment:
Transferred out
Beginning WIP Inventory
$ 51,900
Complete beginning WIP
Cans (4,000 × $0.35)
1,400
Conversion (3,000 × $2.00)
6,000
Total cost of BI transferred
$ 59,300
Started & completed (16,000 × $13.25)
212,000
$271,300
Ending WIP Inventory
Chemicals (5,000 × $10.90)
$ 54,500
Conversion (4,000 × $2.00)
8,000
62,500
Total cost accounted for
$333,800
Chapter 6 163
accessible website, in whole or in part.
(CMA adapted)
56. Octavia Corp. Curing Dept.
Cost of Production Report
For the Month Ended May 31, 2013
Production Data:
Units
TI
DM
DL
OH
Beginning WIP
Inventory
8,000
Units started
40,000
Units to account for
48,000
Beginning WIP
Inventory
8,000
8,000
8,000
8,000
8,000
Started & completed
36,000
36,000
36,000
36,000
36,000
Ending WIP
Inventory
4,000
4,000
2,800
2,000
1,600
Units accounted for
48,000
48,000
46,800
46,000
45,600
Cost Data:
Total
TI
DM
DL
OH
Beginning WIP
Inventory
$ 278,872
$ 200,160
$ 42,504
$ 31,360
$ 4,848
Current costs
2,739,020
1,620,000
333,300
517,880
267,840
Cost to account
for
$3,017,892
$1,820,160
$375,804
$549,240
$272,688
Divided by
EUP
÷ 48,000
÷ 46,800
÷ 46,000
÷ 45,600
Cost per EUP
$63,87
$37.92
$8.03
$11.94
$5.98
Cost Assignment:
Transferred out (44,000 × $63.87)
$2,810,280
Ending WIP Inventory:
TI (4,000 × $37.92)
$151,680
DM (2,800 × $8.03)
22,484
DL (2,000 × $11.94)
23,880
OH (1,600 × $5.98)
9,568
207,612
Total cost accounted for
$3,017,892
(CMA adapted)
164 Chapter 6
57. Octavia Corp. Curing Dept.
Cost of Production Report
For the Month Ended May 31, 2013
Production Data:
Units
TI
DM
DL
OH
Beginning WIP
Inventory
8,000
Units started
40,000
Units to account for
48,000
Beginning WIP
Inventory
8,000
0
1,600
4,800
5,600
Started &
completed
36,000
36,000
36,000
36,000
36,000
Ending WIP
Inventory
4,000
4,000
2,800
2,000
1,600
Units accounted for
40,000
40,400
42,800
43,200
Cost Data:
Total
TI
DM
DL
OH
Beginning WIP
Inventory
$ 278,872
Current costs
2,739,020
$1,620,000
$333,300
$517,880
$267,840
Cost to account
for
$3,017,892
Divided by
EUP
÷ 40,000
÷ 40,400
÷ 42,800
÷ 43,200
Cost per EUP
$67.05
$40.50
$8.25
$12.10
$6.20
Cost Assignment:
Transferred out:
Beginning WIP Inventory
$ 278,872
Complete beginning inventory:
DM (1,600 × $8.25)
$ 13,200
DL (4,800 × $12.10)
58,080
OH (5,600 × $6.20)
34,720
106,000
Started & completed (36,000 × $67.05)
2,413,800
Total cost of transferred out
$2,798,672
Ending WIP Inventory:
TI (4,000 × $40.50)
$162,000
DM (2,800 × $8.25)
23,100
DL (2,000 × $12.10)
24,200
OH (1,600 × $6.20)
9,920
219,220
Total cost accounted for
$3,017,892
(CMA adapted)
Chapter 6 165
58. a. Always Christmas Cutting Dept.
Cost of Production Report
For the Month Ended October 31, 2013
Production Data:
Units
Beginning WIP
Inventory
8,000
Units started
36,000
Units to account for
44,000
Units
Material
Conversion
Beginning WIP
Inventory
8,000
8,000
8,000
Started & completed
32,400
32,400
32,400
Ending WIP Inventory
3,600
3,600
2,520
Units accounted for
44,000
44,000
42,920
Cost Data:
Total
Material
Conversion
Beginning WIP
Inventory
$ 373,000
$ 293,000
$ 80,000
Current costs
2,672,440
1,379,000
1,293,440
Total cost to account for
$3,045,440
$1,672,000
$1,373,440
Divided by EUP
÷ 44,000
÷ 42,920
Cost per EUP
$70
$38
$32
Cost Assignment:
Transferred out (40,400 × $70)
$2,828,000
Ending inventory:
Material (3,600 × $38)
$136,800
Conversion (2,520 × $32)
80,640
217,440
Total cost accounted for
$3,045,440
b. Always Christmas Boxing Dept.
Cost of Production Report
For the Month Ended October 31, 2013
Production Data:
Units
Trans. In
Material
Conversion
Beginning WIP
Inventory
2,500
Units started
40,400
Units to account for
42,900
Beginning WIP
Inventory
2,500
2,500
2,500
2,500
Started & completed
39,200
39,200
39,200
39,200
Ending WIP Inventory
1,200
1,200
0
840
Units accounted for
42,900
42,900
41,700
42,540