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Ex. 18.9 (concluded)
e. 161,000
Work in Process: Baking Department 161,000
Ex. 18.10
a. Beginning work in process, May 1 8,000
Units started by Cutting Department in May 50,000
b. Direct
Input resources required Materials Conversion
To finish beginning inventory in process on May 1:
Direct materials (8,000 units require 0% to complete) 0
Finished Goods Inventory
Ex. 18.10 (concluded)
c. Direct Conversion
Materials Costs
200,000$ 87,200$
d. 288,000
a.
b. 6,000
48,000
One set of cut mats is required for each set coated by the Coating
Beginning work in process, May 1
Units started by Coating Department in May
Cost of direct materials and conversion incurred in May
Work in Process: Coating Department
Ex. 18.11
Ex. 18.11 (continued)
c. Cut Direct
Materials Materials Conversion
Cut materials (6,000 units, 0% to complete) 0
d. Cut Direct Conversion
Materials Materials Costs
288,000$
e. 360,000
Work in Process: Coating Department 360,000
Finished Goods Inventory
Input resources required
To finish beginning inventory in process on May
Cost of cut mats transferred in
(see Ex. 18.10, part d)
Ex. 18.11 (concluded)
f. 54,000$
1,575
a. 1,500
b. 1,500
c. Direct
Materials Conversion
0
Conversion (300 require 80% to complete) 240
d. Direct Conversion
Materials Costs
Units transferred to the Painting Department in June
Input resources required
To finish beginning inventory in process on June 1:
Direct materials (300 units require 0% to complete)
Units transferred to the Painting Department in June
9,000 equivalent units of cut materials × $6 per unit
6,300 equivalent units of direct materials × $0.25 per unit
Ex. 18.12
Ex. 18.12 (concluded)
e. 60,000
Work in Process: Painting Department 60,000
a. Direct Conversion
Materials Costs
50,400$ 36,000$
Costs in beginning inventory, September 1
Work in Process: Pressing Department
Ex. 18.14
Equivalent units in process, September 1:
The recommendation to eliminate the company’s current work in process accounts and charge all
manufacturing costs directly to Finished Goods Inventory makes sense for this company. If we assume
that the company operates 300 days per year, daily production is 100,000 pencils (30,000,000 pencils per
Ex. 18.13
Ex. 18.14 (concluded)
b.
Direct
Materials Conversion
180
Direct Conversion
Materials Costs
789,750$ 787,500$
c.
a. 58,000
2,000
Ex. 18.15
The cost figures computed in parts aand bconvey to management that the cost of input
resources in the Bonding Department have increased in September above their August
Add: Units in process on February 28
Units transferred out of the Blending Department in February
Step 1: Compute input resources required in September
Input resources required
Step 2: Compute equivalent costs per unit in September
Cost of direct materials and conversion incurred in September
To finish beginning inventory in process on September 1:
Direct materials (300 units require 60% to complete)
Ex. 18.15 (continued)
b. 58,000
c. 12,000$
÷ 6,000
2$
6$
Units transferred out of the Blending Department in February
Direct material costs in beginning inventory, February 1
Units of inventory on February 1 (materials 100% complete)
Cost per equivalent unit of direct material from January
Cost per equivalent unit of conversion from January*
Ex. 18.15 (concluded)
d. February cost per equivalent unit of direct material* 3$
*Computations:
Step 1: Compute equivalent units of direct material
SOLUTIONS TO PROBLEMS SET A
20 Minutes, Easy
PROBLEM 18.1A
BRITE IDEAS
a.
Conversion
(900 units require 10% to complete) 90
4,100 4,100 4,100
Body materials (1,100 units 100% complete) 1,100
Step 1: Determine flow of physical goods
To start and complete 4,100 units in June
To start ending inventory in process on June 30:
PROBLEM 18.1A
BRITE IDEAS (concluded)
Body Wiring
Materials Materials Conversion
Body materials
(1,100 units require 0% to complete) 0
Step 2: Determine equivalent units
Input resources required
To finish beginning inventory, July 1:
30 Minutes, Easy
PROBLEM 18.2A
SUN APPLIANCE
a. (1) $50 [($160,000 + $15,000 + $25,000) ÷ 4,000 units]
b.
In evaluating the overall efficiency of the Motor Department, management would look at
30 Minutes, Medium PROBLEM 18.3A
SUN APPLIANCE
Part I. Physical Flow Total Units
Inputs:
• Beginning WIP -0-
• Started 4,000
Part II. Equivalent Units Direct Materials Conversion
Based on monthly input:
• Beginning WIP -0- -0-
• Units started 4,000 4,000
Part III. Cost Per Equivalent Unit Total Unit Cost Direct Materials
Conversion
Costs from Tub Department $160,000 $40,000
Costs from Motor Department 80,000 32,000
Part IV. Total Cost Assignment Total Costs Direct Materials
Conversion
Costs to account for:
• Cost of beginning WIP $ -0-
• Cost added during the period 312,000 240,000 72,000
Total cost to account for $312,000 $240,000 $72,000
PROBLEM 18.4A
TOLL HOUSE
a. Work in Process: Mixing Dept. 12,600
Materials Inventory 3,600
Direct Labor 3,000
Manufacturing Overhead 6,000
Summary of costs incurred in mixing 14,000 lbs.
of cookie dough in May. Cost per lb., $0.90
($12,600 ÷ 14,000 lbs.).
d.
May 31 Work in Process: Packaging Dept. 26,400
Work in Process: Baking Dept. 26,400
To record transfer cost of 4,000 gross of cookies sent
to the packaging department in May.
e. Work in Process: Packaging Dept. 4,320
Materials Inventory 1,020
g.
Management will use the unit costs appearing in entries a, c, and e, in separately
30 Minutes, Medium
35 Minutes, Medium
PROBLEM 18.5A
BADGERSIZE COMPANY
a.
Direct
Materials Conversion
0
b.
Direct Conversion
Materials Costs
150,000$ 252,000$
Total cost incurred in August
Input resources required
To finish beginning inventory, August 1:
Direct materials (20,000 units require 0% to complete)
30 Minutes, Medium PROBLEM 18.6A
BADGERSIZE COMPANY
a. Production Cost Report
Part I. Physical Flow Total Units
Inputs:
• Beginning WIP 20,000
• Started 50,000
Units to account for 70,000
Part II. Equivalent Units Direct Materials Conversion
Consumed
Based on monthly input:
• Finish BWIP -0- 16,000
• Start new units 50,000 47,000
Part III. Cost Per Equivalent Unit Total Unit Cost Direct Materials
Conversion
Input costs in August $150,000 $252,000
Forming Department, Month of August
PROBLEM 18.6A
BADGERSIZE COMPANY (concluded)
Total Costs Direct Materials
Conversion
$104,000
402,000
$506,000
b.
Costs accounted for:
• Cost of goods transferred
Total cost to account for
Part IV. Total Cost Assignment
Costs to account for
• Cost of beginning WIP
• Cost added during the period
Management can compare production cost reports from month to month to help control
costs and assess efficiency of their processes. For example, the equivalent units can be
50 Minutes, Strong
PROBLEM 18.7A
HOUND HAVENS
a.
(1)
2,800
48,200
51,000
(2) Direct
Materials Conversion
280
1,960
(3) Direct Conversion
Materials Costs
669,200$ 521,840$
44,520$
631,120
To finish units in process on April 1:
Conversion (2,800 units require 70% to complete)
Units started in April
Units in process during April
Requirements for the Molding Department in April
Flow of physical units: Molding Department
Units in beginning inventory, April 1
Input resources
Direct materials (2,800 units require 10% to complete)
Cost per equivalent unit in April
Costs incurred by Molding Department in April
April direct materials (45,080 equivalent units × $14)
Cost of beginning inventory, April 1 ($33,340 + $11,180)
Department in April:
To record the transfer of 47,600 units to the Finishing
PROBLEM 18.7A
HOUND HAVENS (continued)
(5)
38,080$
b.
(1)
5,000
47,600
(2) Molding Direct
Materials Materials Conversion
Molding materials
(5,000 units require 0% to complete) 0
Direct materials
(5,000 units require 70% to complete) 3,500
Conversion
(5,000 units require 60% to complete) 3,000
47,600 49,600 49,200
(3) Molding Direct Conversion
Materials Materials Costs
Costs charged to Finishing Department
in April* 1,190,000$ 496,000$ 147,600$
Equivalent units of resources in April
To finish units in process on April 1:
Units in beginning inventory, April 1
Units started in April (see part a (1) )
Cost per equivalent unit in April
Input resources
Work in Process: Molding Department, April 30
Direct materials (2,720 equivalent units × $14)
Requirements for the Finishing Dept. in April
Flow of physical units: Finishing Department
PROBLEM 18.7A
HOUND HAVENS (concluded)
(4) 1,922,800
Work in Process: Finishing Department 1,922,800
(5)
50,000$
Finished Goods Inventory
To record the transfer of 50,600 units
Work in Process: Finishing Department,
Molding materials (2,000 equivalent units × $25)
to the Finished Goods
April 30
50 Minutes, Strong
PROBLEM 18.8A
WILSON DYNAMICS
a.
1.
5,000
75,000
2. Direct
Materials Conversion
0
3,000
67,000 67,000
3. Direct Conversion
Materials Costs
675,000$ 608,000$
4. 1,224,000
Work in Process: Forging Department 1,224,000
61,000$
5. Work in Process: Forging Department, July 31
Requirements for the Forging Department in July
Flow of physical units: Forging Department
Units in beginning inventory, July 1
Units started in July
To finish units in process on July 1:
Input resources
To start and complete 67,000 units in July
To start units in process on July 31:
Conversion (5,000 units require 60% to complete)
Direct materials (5,000 units require 0% to complete)
Work in Process: Assembly Department
To record the transfer of 72,000 units to the Assembly
Department in July:
Cost of beginning inventory, July 1 ($45,000 + $16,000)
Costs incurred by Forging Department in July
Cost per equivalent unit in July
