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1081
Exercise 20-11 (continued)
2.
Cost assignment and reconciliation - FIFO
Cost of 60,000 units from beginning inventory
Beginning inventory
$ 167,066
Materials to complete (24,000 EUP x $2.58 per EUP)
61,920
Costs to be assigned:
Beginning inventory
$167,066
1082
Exercise 20-12 (30 minutes)
ASHAD COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended July 31
Costs Charged to Production
Unit Information
Units to Account For
Units Accounted For
Equivalent Units of Production (EUP)
Direct
Materials
Conversion
Units completed and transferred out ................................
32,000 EUP
32,000 EUP
Cost per EUP
Direct
Materials
Conversion
Cost Assignment and Reconciliation
Costs transferred out
1083
Exercise 20-13 (40 minutes)
ASHAD COMPANY
Process Cost Summary – FIFO Method
For Month Ended July 31
Costs Charged to Production
Costs of beginning work in process
Unit cost information
Units to account for
Units accounted for
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
1084
Exercise 20-13 (Concluded)
Cost per EUP
Direct
Materials
Conversion
Costs incurred this period…………
$ 357,500
$ 188,670
Cost assignment and reconciliation
Costs transferred out
Exercise 20-14 (30 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Weaving
Sewing
Finished
Department
Department
Goods
Beginning inventory ..................................
$ 300,000
$ 570,000
$1,266,000
Part 2: Summary journal entries.
June 30
Work in Process Inventory—Sewing ..........................
2,370,000
1086
Exercise 20-15 (25 minutes)
Summary journal entries (all dated June 30)
a.
Raw Materials Inventory ...............................................
500,000
Accounts Payable ...................................................
500,000
Purchased raw materials.
1087
Exercise 20-16 (25 minutes)
ELLIOTT COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended March 31
Costs Charged to Production
Costs of beginning work in process
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out..
17,000 EUP
17,000 EUP
Units of ending work in process
1088
Exercise 20-16 (continued)
Cost assignment and reconciliation
Costs transferred out
Exercise 20-17 (40 minutes)
OSLO COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended May 31
Costs Charged to Production
Costs of beginning work in process
1089
Exercise 20-17 (Concluded)
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out…
13,000 EUP
13,000 EUP
Units of ending work in process
Cost per EUP
Direct
Materials
Conversion
Cost of beginning work in process…
$ 2,880
$ 5,358
Cost assignment and reconciliation
Costs transferred out
Exercise 20-18 (10 minutes)
Equivalent units of production—FIFO
Units of
Percent
Equivalent
EUP (for materials and conversion)
Product
Added
Units
1090
Exercise 20-19 (20 minutes)
[Note: Solution key is on the following page.]
Punching
Bending
Warehouse
Beginning Work in
Process
$7,500
Direct
Materials
$60,000
Direct
Labor
$12,000
Factory
Overhead
$15,000
Beginning Work in
Process
$9,750
Direct
Materials
(3) $83,250
Direct
Labor
$30,750
Factory
Overhead
$36,900
1091
Exercise 20-19 (Continued)
Key to solution of flowchart:
(1)
Beginning work in process in punching
$ 7,500
Direct materials added
$ 60,000
(2)
Total costs in process in punching department
$ 94,500
(3)
Beginning work in process in bending
$ 9,750
(4)
Total costs in process in bending department
$249,150
(5)
Beginning Finished Goods inventory
$ 18,000
(6)
Cost of goods available for sale
$254,400
1092
Exercise 20-20 (30 minutes)
1.
Units to account for
Units Accounted For
2. and 3.
Equivalent Units of Production (EUP)
Direct
Materials
Conversion
4. and 5.
Cost per EUP
Direct
Materials
Conversion
Costs of beginning work in process…..
$ 45,000
$ 56,320
1093
Exercise 20-20 (concluded)
6.
Costs transferred out
7.
Cost of ending work in process
Exercise 20-21 (10 minutes)
1.
Raw Materials Inventory ...............................................
80,000
1094
Exercise 20-22 (10 minutes)
1.
Work in Process Inventory ............................................
75,000
Exercise 20-23 (5 minutes)
1.
Factory Overhead ..........................................................
38,750
Exercise 20-24 (5 minutes)
1.
Finished Goods Inventory .............................................
135,600
1095
Exercise 20-25 (25 minutes)
1.
Oct. 31
Work in Process Inventory ............................................
522,000
1096
Exercise 20-26 (25 minutes)
a. Purchased raw materials on credit at a cost of $52,000.
b. Used direct materials costing $42,000 in production.
Exercise 20-27 (10 minutes)
A hybrid costing system contains features of both process costing and job
order costing. A hybrid system of processes requires a hybrid costing
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 20
1097
PROBLEM SET A
Problem 20-1A (45 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Beginning work in process inventory ................................
$ 435,000
Direct materials used in production ................................
157,500
Part 2: Summary journal entries
a.
May 31
Raw Materials Inventory ...............................................
250,000
1098
Problem 20-1A (Continued)
d.
May 31
Work in Process Inventory ................................
780,000
Factory Wages Payable ................................
780,000
Incurred direct labor costs.
e.
1099
Problem 20-2A (50 minutes)
Part 1
(a) and (b) Equivalent units with respect to direct materials and conversion
Direct
Equivalent units of production (EUP)
Materials
Conversion
Part 2
Cost per equivalent unit of production
Direct
Materials
Conversion
Costs of beginning Work in Process ...........................
$ 420,000
$ 139,000
Part 3 Assigning product costs to units
Costs transferred out
Direct materials (700,000 EUP x $3.00 per EUP) .......
$2,100,000
1100
Problem 20-2A (Concluded)
Part 4
MEMORANDUM
TO:
FROM:
DATE:
RE: Percentage of Completion Error Analysis
