166 Chapter 6
accessible website, in whole or in part.
Cost Data:
Total
Trans. In
Material
Conversion
Cost in BI
$ 173,413
$ 166,420
$ 0
$ 6,993
Current costs
3,457,760
2,828,000
383,640
246,120
Total to acct. for
$3,631,173
$2,994,420
$383,640
$253,113
Divided by EUP
÷ 42,900
÷ 41,700
÷ 42,540
Cost per EUP
$84.95
$69.80
$9.20
$5.95
Cost Assignment:
Transferred out (41,700 × $84.95)
Ending inventory:
Transferred in (1,200 × $69.80)
$83,760
Conversion (840 × $5.95)
4,998
88,758
Total cost accounted for
59. a. Striping Dept.:
Beginning inventory
$ 20,000
Current costs:
DM
90,000
DL
80,000
OH ($80,000 × 0.8)
64,000
Total
$254,000
Less ending inventory
(17,000)
Costs transferred to Adhesion
$237,000
b. Adhesion Dept.: (let CC = conversion costs)
BI + TI + DM + CC – TO = EI
$70,000 + $237,000 + $22,600 + CC – $480,000 = $20,600
c. CGM is equal to the cost of goods transferred into FG Inventory ($880,000).
DL = $112,500
BI + TI + DM + DL + OH – CGM = $40,000
d. WIP Inventory—Adhesion
237,000
WIP Inventory—Striping
237,000
WIP Inventory—Packaging
480,000
WIP Inventory—Adhesion
480,000
Chapter 6 167
accessible website, in whole or in part.
Finished Goods Inventory
880,000
WIP Inventory—Packaging
880,000
Cost of Goods Sold
720,000
Finished Goods Inventory
720,000
60. a. Cutting Department:
Units
Material
Conversion
Beginning WIP Inventory
1,300
Units started
4,800
Units to account for
6,100
Beginning WIP Inventory
1,300
260
325
Started & completed
3,700
3,700
3,700
Ending WIP Inventory
1,100
440
220
EUP
6,100
4,400
4,245
Coating Department:
Units
Trans. In
Material
Conversion
Beginning WIP Inventory
900
Units started
5,000
Units to account for
5,900
Beginning WIP Inventory
900
0
900
360
Started & completed
3,600
3,600
3,600
3,600
Ending WIP Inventory
1,400
1,400
0
560
EUP
5,900
5,000
4,500
4,520
b. Cutting Department:
Total
Material
Conversion
Beginning WIP Inventory
$16,065
Current costs
56,425
$35,200
$21,225
Total cost to account for
$72,490
Divided by EUP
÷ 4,400
÷ 4,245
Cost per EUP
$13
$8
$5
c. Cost transferred out of Cutting (FIFO):
Cost of BI
$16,065
Cost to complete BI
Material (260 × $8)
$ 2,080
Conversion (325 × $5)
1,625
S&C (3,700 × $13)
48,100
51,805
Total cost of goods transferred
$67,870
Ending WIP:
DM (440 × $8)
$ 3,520
CC (220 × $5)
1,100
4,620
Total
$72,490
168 Chapter 6
d. Coating Department:
Total
Trans. In
Material
Conversion
Cost in BI
$13,514
Current costs
84,120
$67,870
$4,950
$11,300
Total
$97,634
Divided by EUP
÷ 5,000
÷ 4,500
÷ 4,520
Cost per EUP
$17.17
$13.57*
$1.10
$2.50
*Rounded
e. Cost Assignment:
Transferred out
Beginning inventory cost
$13,514
Cost to complete:
Material (900 × $1.10)
990
Conversion (360 × $2.50)
900
$15,404
Units S&C (3,600 × $17.17)
61,812
Total cost transferred out
$77,216
Ending inventory:
Transferred in (1,400 × $13.57)
$18,998
Conversion (560 × $2.50)
1,400
20,398
Cost accounted for (off due to rounding)
$97,614
61. a.
Extrusion
Form
Trim
Finish
Units produced
16,000
11,000
5,000
2,000
Material costs
$192,000
$ 44,000
$ 15,000
$12,000
Unit cost
$ 12.00
$ 4.00
$ 3.00
$ 6.00
Conversion cost
$392,000
$132,000
$ 69,000
$42,000
Unit cost
$ 24.50
$ 12.00
$ 13.80
$ 21.00
Plastic
Standard
Deluxe
Executive
Unit costs:
Sheets
Model
Model
Model
Extrusion material
$ 12.00
$ 12.00
$ 12.00
$ 12.00
Form material
––
4.00
4.00
4.00
Trim material
––
––
3.00
3.00
Finish material
––
––
––
6.00
Extrusion conversion
24.50
24.50
24.50
24.50
Form conversion
––
12.00
12.00
12.00
Trim conversion
––
––
13.80
13.80
Finish conversion
––
––
––
21.00
Total unit cost
$ 36.50
$ 52.50
$ 69.30
$ 96.30
Times units produced
× 5,000
× 6,000
× 3,000
× 2,000
Total product cost
$182,500
$315,000
$207,900
$192,600
b.
EQUIVALENT UNITS
Material
Conversion
Entering trim operation:
%
Qty.
%
Qty.
2,000 Deluxe units
100
2,000
100
2,000
1,000 Deluxe units
100
1,000
60
600
2,000 Executive units
100
2,000
100
2,000
Total equivalent units
5,000
4,600
Chapter 6 169
Deluxe model WIP costs:
Unit Cost
Total Costs
Extrusion material
$12.00
$12,000
Form material
4.00
4,000
Trim material (100%)
3.00
3,000
Extrusion conversion
24.50
24,500
Form conversion
12.00
12,000
Trim conversion (60%)
9.00*
9,000*
Work in process costs
$64.50
$64,500
*Conversion cost = ($30,000 + $39,000) ÷ 4,600 = $15 per equivalent unit.
(CMA adapted)
62. a. Components in produced inventory:
DM Logos Streamers Handles
Plain 60,000
W/logos & streamers 418,000 418,000 418,000
W/logos, streamers, & handles 25,000 25,000 25,000 25,000
Ending WIP Inventory (all 9,000 units had the direct material):
Plain = 9,000 × 0.70 = 6,300
Units
BI 15,000
Units DM Logos Streamers Handles
BI 15,000
Started and completed 511,000
Completed 526,000 526,000 443,000 461,000 32,800
Conversion Units EUP
BI 15,000
Started and completed 511,000
170 Chapter 6
accessible website, in whole or in part.
Conversion costs = $5,703 + $282,954 = $288,657
Total cost to account for = $905,559 + $288,657 = $1,194,216
Cost of ending WIP towels:
Plain towels
b. Production Sales Ending Inv.
Plain 60,000 58,000 2,000
W/logos & streamers 418,000 417,500 500
Plain 2,000 × ($0.90 + $0.54) $2,880.00
W/logos & streamers 500 × ($1.84 + $0.54) 1,190.00
c. Plain 58,000 × ($0.90 + $0.54) $ 83,520.00
W/logos & streamers 417,500 × ($1.84 + $0.54) 993,650.00
Cost of ending WIP Inventory $ 14,364.00
company.
Chapter 6 171
accessible website, in whole or in part.
63. a.
Units
Material
Conversion
Beginning inventory
10,000
Units started
180,000
Units to account for
190,000
Beginning inventory completed
10,000
0
3,000
Units started & completed
140,000
140,000
140,000
Units completed
150,000
Ending inventory
40,000
40,000
24,000
EUP
190,000
180,000
167,000
b. Donbrowski Co.
Cost of Production Report
For the Month of May 2013
Production Data:
Units
Material
Beginning inventory
10,000
Units started
180,000
Units to account for
190,000
Beginning inventory completed
10,000
0
Units started & completed
140,000
140,000
Ending inventory
40,000
40,000
EUP
190,000
180,000
Cost Data (all at standard):
Total
Material
Conversion
BI: DM (10,000 × $5.50)
$ 55,000
$ 55,000
CC (7,000 × $12.50)
87,500
$ 87,500
Current costs:
DM (180,000 × $5.50)
990,000
990,000
CC (167,000 × $12.50)
2,087,500
2,087,500
Total cost to account for
$3,220,000
$1,045,000
$2,175,000
Cost Assignment
Transferred out (150,000 × $18)
$2,700,000
Ending inventory:
Material (40,000 × $5.50)
$220,000
Conversion (24,000 × $12.50)
300,000
520,000
Total costs assigned
$3,220,000
$3,077,500 = $59,500 unfavorable
Material:
Current actual cost
$1,001,000
Standard cost (180,000 × $5.50)
(990,000)
Direct material variance
$ 11,000 U