Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
Chapter 16
Process Costing and Analysis
QUICK STUDIES
Quick Study 16-1 (5 minutes)
1. Job order operation
6. Process operation
3. Job order operation
5. Process operation
Quick Study 16-2 (5 minutes)
Quick Study 16-3 (10 minutes)
1. Process operation 6. Process operation
2. Job order operation 7. Job order operation
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Quick Study 16-4 (10 minutes)
Units to account for
Units accounted for
Beginning work in process …..
Units started this period ………
Quick Study 16-5 (10 minutes)
Equivalent units of production: Weighted-average method
Conversion
Units
Percent
Complete
EUP
340,000
120,000
370,000 EUP
Quick Study 16-6A (10 minutes)
a. Units started and completed = Units completed – Units in beginning work in process
b. Equivalent units of production: FIFO method
Conversion
Units
Percent
Added
EUP
150,000
20%
30,000
190,000
120,000
250,000 EUP
Quick Study 16-7 (5 minutes)
Cost per equivalent unit of production—Weighted-average
Conversion
Costs of beginning work in process ……………………………..
$200,000
$900,000
÷ Equivalent units of production ………………………………………
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Quick Study 16-8 (10 minutes)
Equivalent units of production: Weighted-average method
Conversion
Units
Percent
Complete
EUP
680,000
260,000
60%
Quick Study 16-9A (15 minutes)
a. Units started and completed = Units completed – Units in beginning work in process
b. Equivalent units of production: FIFO method
Conversion
Units
Percent
Added
EUP
320,000
75%
240,000
360,000
360,000
260,000
60%
756,000 EUP
Quick Study 16-10 (15 minutes)
Equivalent units of production: Weighted-average method
Direct Materials
Conversion
Units
Percent
Complete
EUP
Percent
Complete
EUP
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Quick Study 16–11 (25 minutes)
Cost per equivalent unit of production—
Weighted-average
Direct
Materials
Conversion
Costs of beginning work in process …………..
$ 996
$ 585
Quick Study 16-12 (10 minutes)
Cost assignment—Weighted-average
EUP*
Cost per EUP
Total Cost .
Completed and transferred out
Direct materials ……………………….
9,000
$1.00
$ 9,000
Conversion ……………………………..
9,000
11,700
$20,700
Direct materials ……………………….
2,400
$1.00
Conversion ……………………………..
3,570
Quick Study 16-13 (5 minutes)
Nov. 30
Work in Process Inventory—Painting ………………..
20,700
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Quick Study 16–14A (15 minutes)
a. Units started and completed = Units completed – Units in beginning work in process
7,000 = 9,000 – 2,000
b. Equivalent units of production: FIFO method
Direct Materials
Conversion
Units
Percent
Added
EUP
Percent
Added
EUP
Beginning work in process ….
2,000
40%
800
60%
1,200
7,000
7,000
3,000
80%
30%
9,100
Quick Study 16–15A (10 minutes)
Cost per equivalent unit of production—FIFO
Direct Materials
Conversion
Costs added this period …………………………..
$10,404
$12,285
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
Quick Study 16–16A (20 minutes)
Cost assignment—FIFO
EUP*
Cost per EUP
_ Total Cost __
Beginning work in process ………………..
$ 1,581
To complete beginning work in process
Direct materials ……………………………….
800
$1.02
$ 816
Conversion ……………………………………..
1,200
$1.35
1,620
Direct materials ……………………………….
7,000
$1.02
Completed and transferred out ………..
Direct materials ……………………………….
$1.02
2,448
Conversion …………………………..…………
$1.35
1,215
Quick Study 16–17A (5 minutes)
Nov. 30
Work in Process Inventory—Painting ………………..
20,607
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Quick Study 16-18 (15 minutes)
a. Beginning work in progress + Units started = Units completed & transferred out + Ending work in progress
b. Equivalent units of production: Weighted-average method
Direct Materials
Units
Percent
Complete
EUP
c.
Cost per equivalent unit of production—Weighted-average
Direct Materials
Costs of beginning work in process ……………………………..
$ 1,200
$29,100
Quick Study 16-19 (10 minutes)
Cost assignment—Weighted-average (Direct Materials Only)
EUP
Cost per EUP
Total Cost .
Completed and transferred out
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Quick Study 16-20 (10 minutes)
Supporting calculations follow:
Work in Process Inventory—Cutting
Beginning
3,445
Direct materials
8,240
Conversion
11,100
15,685
Transferred to Binding
Ending
7,100
Beginning
6,426
15,685
Direct materials
6,356
Conversion
18,575
30,000
Transferred to FG Inventory
Ending
17,042
Quick Study 16–21A (15 minutes)
a. Equivalent units of production: FIFO method
Direct Materials
Units
Percent
Added
EUP
2,000
30%
600
18,000 EUP
b.
Cost per equivalent unit of production—FIFO
Direct Materials
Costs added this period ………………………………….
$27,900
18,000 EUP
= Cost per equivalent unit of production …………….
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Quick Study 16–22A (15 minutes)
Cost assignment—FIFO
EUP*
Cost per EUP
_ Total Cost __
Beginning work in process ………………..
$ 2,170
To complete beginning work in process
Direct materials ……………………………….
600
$1.55
$ 930
Direct materials ……………………………….
$1.55
Quick Study 16–23 (10 minutes)
a.
Raw Materials Inventory …………………………………
62,000
Accounts Payable ……………………………………..
62,000
b.
Work in Process Inventory—Mixing ………………..
50,000
Raw Materials Inventory …………………………...
50,000
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
Quick Study 16-24 (10 minutes)
a.
Work in Process Inventory—Mixing ………………..
75,000
Work in Process Inventory—Shaping ……………..
Factory Wages Payable ……………………………..
Record direct labor used in production.
b.
Factory Overhead …………………………………………..
Factory Wages Payable …………………………….
Record indirect labor used in production.
Quick Study 16-25 (10 minutes)
a.
Factory Overhead …………………………………………..
9,000
Raw Materials Inventory …………………………...
9,000
Record indirect materials used in production.
b.
Factory Overhead …………………………………………..
156,000
Cash …………………………..…………………………...
c.
Work in Process Inventory—Mixing ………………..
105,000
Work in Process Inventory—Shaping ……………..
Factory Overhead ……………………………………..
$75,000 x 140% and $50,000 x 140%.
Quick Study 16–26 (5 minutes)
Finished Goods Inventory ………………………………
275,000
Work in Process Inventory—Shaping ………..
Transfer of finished goods from production.
Quick Study 16-27 (5 minutes)
b.
Sales (48,000 x $5.00) ………………………………………….
$ 240,000
Quick Study 16-28 (10 minutes)
a. Cost per unit = Assembly process costs + Cost of option package
Production cost
Mega
Direct materials ………………………………………………..
$12,000
Conversion ………………………………………………………
b. Selling price per unit = Cost per unit + Markup
Selling price
Mega
Cost per unit …………………………..…………………………
$24,000
Markup (20%) ……………………………………………………
$28,800
Quick Study 16-29 (5 minutes)
Computation of process yield percent
Number of non–defective gallons produced ………
47,000
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
EXERCISES
Exercise 16-1 (10 minutes)
1. Process operation 6. Process operation
Exercise 16-2 (10 minutes)
1. Process operation 4. Both
Exercise 16-3 (10 minutes)
1. F: Materials requisition
2. A: Factory Overhead account
1013
Exercise 16-4 (30 minutes)
a. Beginning inventory is 100% complete with respect to direct materials.
Ending inventory is 100% complete with respect to direct materials.
b. Beginning inventory is 40% complete with respect to direct materials.
Ending inventory is 75% complete with respect to direct materials.
c. Beginning inventory is 60% complete with respect to direct materials.
Ending inventory is 30% complete with respect to direct materials.
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
Exercise 16-5A (30 minutes)
a. Beginning inventory is 100% complete with respect to direct materials.
Ending inventory is 100% complete with respect to direct materials.
Equivalent units of production: FIFO method
Direct Materials
Units
Percent
Added
EUP
72,000 EUP
b. Beginning inventory is 40% complete with respect to direct materials.
Ending inventory is 75% complete with respect to direct materials.
Equivalent units of production: FIFO method
Direct Materials
Units
Percent
Added
EUP
82,400 EUP
c. Beginning inventory is 60% complete with respect to direct materials.
Ending inventory is 30% complete with respect to direct materials.
Equivalent units of production: FIFO method
Direct Materials
Units
Added
70,400 EUP
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Exercise 16-6 (30 minutes)
a. Equivalent units of production: Weighted-average method
Direct Materials
Conversion
Units
Percent
Complete
EUP
Percent
Complete
EUP
b. Cost per equivalent unit of production: Weighted-average method
Direct Materials
Conversion
Costs of beginning work in process ………….
$ 44,800
$ 15,300
Costs added this period …………………………..
Total costs ……………………………………………….
$1,276,000
$912,000
c.
Cost assignment—Weighted-average
EUP
Cost per EUP
Total Cost .
Completed and transferred out
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Exercise 16-7A (30 minutes)
b. Equivalent units of production: FIFO method
Direct Materials
Conversion
Units
Percent
Added
EUP
Percent
Added
EUP
Beginning work in process ……….
25,000
40%
10,000
60%
15,000
Started and completed ………………….
c. Cost per equivalent unit of production: FIFO method
Direct Materials
Conversion
Costs added this period …………………………..
$1,231,200
$896,700
Exercise 16-8 (20 minutes)
Equivalent units of production: Weighted-average method
Direct Materials
Conversion
Units
Percent
Complete
EUP
Percent
Complete
EUP
Completed and transferred out ……..
Ending work in process …………….
82,000
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Exercise 16-9 (20 minutes)
a. Cost per equivalent unit of production: Weighted-average method
Direct Materials
Conversion
Costs of beginning work in process ………….
$118,472
$ 48,594
Costs added this period …………………………..
Total costs ……………………………………………….
$968,840
b.
Cost assignment—Weighted-average
EUP
Cost per EUP
Total Cost .
Completed and transferred out
226,730
Total costs accounted for ………..
$1,666,730
Additional explanation in T-account form:
Work in Process Inventory—Department 1
Beginning
167,066
Direct materials
850,368
Conversion
649,296
1,440,000
Transferred out
Wild and Shaw, Financial and Managerial Accounting 9e Solutions Manual: Chapter 16
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Exercise 16–10A (20 minutes)
b. Equivalent units of production: FIFO method
Direct Materials
Conversion
Units
Percent
Added
EUP
Percent
Added
EUP
Beginning work in process ……….
60,000
40%
24,000
60%
36,000
Started and completed ………………….
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Exercise 16–11A (20 minutes)
a. Cost per equivalent unit of production: FIFO method
Direct Materials
Conversion
Costs added this period …………………………..
$850,368
$649,296
b.
Cost assignment—FIFO
EUP
Cost per EUP
_ Total Cost __
Beginning work in process ………………..
$167,066
To complete beginning work in process
Direct materials ……………………………….
$2.58
$2.16
77,760
Started and completed
$2.58
$2.16
518,400
Ending work in process
Direct materials ……………………………….
65,600
$2.58
169,248
Conversion …………………………..…………
24,600
$2.16
53,136
222,384
Total costs accounted for ………………….
$1,666,730
Additional explanation in T-account form:
Work in Process Inventory—Department 1
Beginning
167,066
Direct materials
850,368
Conversion
649,296
1,444,346
Transferred out
Ending
222,384
1020
Exercise 16-12 (20 minutes)
a. Equivalent units of production: Weighted-average
Direct Materials
Conversion
Units
Percent
Complete
EUP
Percent
Complete
EUP
b. Cost per equivalent unit of production: Weighted-average
Direct Materials
Conversion
Costs of beginning work in process ………….
$ 45,000
$ 56,320
Costs added this period …………………………..
Total costs ……………………………………………….
c.
Cost assignment—Weighted-average
EUP
Cost per EUP
Total Cost .
Completed and transferred out
Direct materials ……………………..
23,000
$14.00
$322,000
$676,200
$15.40