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1101
Problem 20-3A (75 minutes)
Part 1
Weighted average
Units
Fast Co. - units
Units in Beg. inventory
30,000
Beg. Inv
30,000
FAST CO.
Process Cost Summary – Weighted Average Method
For the month ended October 31
Costs Charged to Production
Costs of beginning work in process
Direct materials……………………………………………
$ 17,100
1102
Problem 20-3A (concluded)
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out..
150,000 EUP
150,000 EUP
Cost per EUP
Direct
Materials
Conversion
Cost of beginning work in process..
$17,100
$67,200
Cost assignment and reconciliation
Part 2
1103
Problem 20-4A (80 minutes)
Part 1
TAMAR CO.
Process Cost Summary – Weighted Average Method
For Month Ended May 31
Costs Charged to Production
Costs of beginning work in process
Direct materials………………………………………
$ 19,800
Unit cost information
Units to account for
Units accounted for
Equivalent units of production
Direct
Materials
Conversion
1104
Problem 20-4A (Concluded)
Cost assignment and reconciliation
Costs transferred out
Part 2
Part 3
3a. Two major estimates are the: i) overhead allocation rate, and ii)
percentage of completion for materials and conversion.
1105
Problem 20-5A (80 minutes)
Part 1
TAMAR CO.
Process Cost Summary – FIFO Method
For Month Ended May 31
Costs Charged to Production
Unit cost information
Equivalent units of production
Direct
Materials
Conversion
1106
Problem 20-5A (Concluded)
Cost per EUP
Direct
Materials
Conversion
Costs incurred this period ..................
$ 496,800
$2,165,940
Cost assignment and reconciliation
Costs transferred out
Part 2
1107
Problem 20-6A (45 minutes)
1.
Units in beginning inventory .........................................
37,500
2. Equivalent units of production—FIFO
Direct
Equivalent units of production—FIFO
Materials
Conversion
3. Cost per equivalent unit of direct materials and conversion—FIFO
Direct
Cost per equivalent unit—FIFO
Materials
Conversion
1108
Problem 20-6A (Concluded)
4. Assignment of costs to output of department—FIFO
Costs of goods transferred out
Cost of beginning work in process inventory
Direct materials……………………………………
$74,075.00
Conversion…………………………………………
28,493.00
$ 102,568.00
1109
Problem 20-7A (80 minutes)
Part 1
DENGO CO.—Roasting Department
Process Cost Summary – FIFO Method
For Month Ended October 31
Costs Charged to Production
Costs of beginning work in process
Direct materials ................................................................
$ 9,900
Unit cost information
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
Direct materials (3,000 x 0%)…………
0 EUP
1110
Problem 20-7A (Continued)
Cost per EUP
Direct
Materials
Conversion
Costs incurred this period…………
$ 248,400
$1,082,970
Cost assignment and reconciliation
Costs transferred out
Part 2
Oct. 31
Work in Process Inventory—Blending ...............................
1,333,920
1111
Problem 20-7A (Concluded)
Part 3
If equivalent units of production for a production department's ending
inventory for October are understated, then total equivalent units of
Wild, Shaw, Chiappetta, FAP 23e Solutions Manual: Chapter 20
1112
PROBLEM SET B
Problem 20-1B (45 minutes)
Part 1: Cost of goods transferred and cost of goods sold
Beginning work in process inventory ..............................................
$156,000
Direct materials used in production ................................................
120,000
Part 2: Summary journal entries
a.
June 30
Raw Materials Inventory ...............................................
200,000
Accounts Payable ...................................................
200,000
Purchased raw materials.
b.
1113
Problem 20-1B (Continued)
d.
June 30
Work in Process Inventory ................................
350,000
Factory Wages Payable ................................
350,000
Used direct labor.
1114
Problem 20-2B (50 minutes)
Part 1
(a) and (b) Equivalent units with respect to direct materials and conversion
Direct
Equivalent units of production
Materials
Conversion
Part 2
Cost per equivalent unit of production
Direct
Materials
Conversion
Costs of beginning work in process ..................
$ 58,000
$ 86,400
Part 3: Assigning product costs to units
Costs transferred out
Direct materials (80,000 EUP x $8.75 per EUP) .........
$ 700,000
1115
Problem 20-2B (Concluded)
Part 4
MEMORANDUM
TO:
FROM:
DATE:
RE: Percentage of Completion Error Analysis
If the units in ending inventory are 75% complete instead of 25% with respect
to conversion, the number of equivalent units in ending inventory with respect
to conversion is understated, and the total equivalent units produced for the
1116
Problem 20-3B (75 minutes)
Part 1
BRAUN COMPANY
Process Cost Summary – Weighted Average Method
For Month Ended November 30
Costs Charged to Production
Costs of beginning work in process
Direct materials ............................................................
$ 6,800
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out…
100,000 EUP
100,000 EUP
Units of ending work in process
1117
Problem 20-3B (Concluded)
Cost assignment and reconciliation
Costs transferred out
Direct materials (100,000 EUP x $1.10 per EUP) ......
$110,000
Part 2
1118
Problem 20-4B (80 minutes)
Part 1
SWITCH CO.
Process Cost Summary – Weighted Average Method
For Month Ended January 31
Costs Charged to Production
Costs of beginning work in process
Direct materials…………………………………………
$ 7,500
Unit cost information
Units to account for
Units accounted for
Beginning work in process .............
10,000
Completed & transferred out .....
220,000
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out………
220,000 EUP
220,000 EUP
1119
Problem 20-4B (Concluded)
Cost assignment and reconciliation
Costs transferred out
Part 2
Jan. 31
Finished Goods Inventory ................................
741,400
Part 3
3a. Two major estimates are the: i) overhead allocation rate, and ii)
1120
Problem 20-5B (80 minutes)
Part 1
SWITCH COMPANY
Process Cost Summary – FIFO Method
For Month Ended January 31
Costs Charged to Production
Costs of beginning work in process
Direct materials ............................................................
$ 7,500
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
