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Solutions Manual, Chapter 4 11
The Foundational 15 (continued)
14. The journal entry to record the transfer of costs from Work in
Process—Mixing to Finished Goods would be recorded as follows:
15. The total cost to be accounted for and the total cost accounted for is:
Costs to be accounted for:
Costs accounted for:
Cost of endin
g
work in process inventory ………. $ 41,600
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12 Managerial Accounting, 16th Edition
Exercise 4-1 (20 minutes)
a. To record raw materials used in production:
Work in Process—Molding Department …….. 23,000
b. To record direct labor costs incurred:
Work in Process—Molding Department …….. 12,000
c. To record applying manufacturing overhead:
d. To record transfer of unfired, molded bricks from the Molding
Department to the Firing Department:
e. To record transfer of finished bricks from the Firing Department to the
finished bricks warehouse:
f. To record cost of goods sold:
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Solutions Manual, Chapter 4 13
Exercise 4-2 (10 minutes)
Weighted-Average Method
Equivalent Units of
Production
Materials Conversion
Units transferred out ………………… 190,000 190,000
Equivalent units in endin
g
work in
process inventory:
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14 Managerial Accounting, 16th Edition
Exercise 4-3 (10 minutes)
Weighted-Average Method
Materials Labor Overhead
Cost of be
g
innin
g
work in process
inventory …………………………….. $ 18,000 $ 5,500 $ 27,500
Cost added durin
g
the period….….. 238,900 80,300 401,500
T
ota
l
Materials …………………………………………….. $7.34
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Solutions Manual, Chapter 4 15
Exercise 4-4 (10 minutes)
1.
Materials Conversion Total
Ending work in process inventory:
Equivalent units …………………….. 2,000 800
2.
Materials Conversion Total
Units completed and transferred out:
Units transferred to the next
department ………………………. 20,100 20,100
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16 Managerial Accounting, 16th Edition
Exercise 4-5 (10 minutes)
Bakin
g
Department
Cost Reconciliation
Costs to be accounted for:
Costs accounted for as follows:
*The cost of units completed and transferred out can be deduced as
follows:
Cost of beginning Costs added Cost of endin
g
Cost of units
work in process + to production =work in process + completed and
inventory during the period inventory transferred out
Cost of
units
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Solutions Manual, Chapter 4 17
Exercise 4-6 (10 minutes)
Weighted-Average Method
1.
Tons of Pulp
Work in process, June 1 …………………………………… 20,000
Started into production durin
g
the month …………….. 190,000
2.
Equivalent Units of
Production
Materials
Labor and
Overhead
Units transferred out ………………………….. 180,000 180,000
Equivalent units in endin
g
work in process
inventory:
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18 Managerial Accounting, 16th Edition
Exercise 4-7 (10 minutes)
Work in Process
—
Cookin
g
………… 42,000
—
g
Work in Process
—
Cookin
g
………… 75,000
Work in Process
—
Moldin
g
………… 45,000
—
g
—
g
—
g
—
g
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Solutions Manual, Chapter 4 19
Exercise 4-8 (30 minutes)
Weighted-Average Method
1.
Materials Conversion
Units transferred to the next production
department …………………………………………. 175,000 175,000
2.
Materials Conversion
Cost of be
g
innin
g
work in process …………….. $ 1,500 $ 4,000
Cost added durin
g
the period…………………… 54,000 352,000
3. and 4.
Materials Conversion Total
Ending work in process inventory:
Equivalent units (see above) …. 10,000 3,000
Units completed and transferred out:
Units transferred to the next
department ……………..……. 175,000 175,000
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20 Managerial Accounting, 16th Edition
Exercise 4-9 (15 minutes)
Weighted-Average Method
1.
Materials Labor Overhead
Units transferred to the next
department ………………………………. 42,000 42,000 42,000
Equivalent units in endin
g
work in
2.
Materials Labor Overhead
Cost of be
g
innin
g
work in process …. $ 4,320 $ 1,040 $ 1,790
Cost added durin
g
the period……….. 52,800 21,500 32,250