1101
Problem 20-3A (75 minutes)
Part 1
Weighted average
Units
Fast Co. – units
Units in Beg. inventory
30,000
Beg. Inv
30,000
Units started
Units in ending inventory
Units transferred out
End. Inv
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
Costs incurred this period
Direct materials……………………………………………
Conversion costs…………………………………………
Unit cost information
Beginning work in process …………………………..
Units started this period…………………………..
140,000
Total units to account for …………………………..
170,000
1102
Problem 20-3A (concluded)
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out..
150,000 EUP
150,000 EUP
Units of ending work in process
Cost per EUP
Direct
Materials
Conversion
Cost of beginning work in process..
$17,100
$67,200
Cost assignment and reconciliation
Costs transferred out
Costs of ending work in process
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
Costs incurred this period
Direct materials………………………………………
Conversion……………………………………………
Unit cost information
Units to account for
Units accounted for
Beginning work in process..
Total units accounted for …………….
Equivalent units of production
Direct
Materials
Conversion
Direct materials (2,400 x 100%)….
Conversion (2,400 x 80%)…………
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
Costs of beginning work in process
Costs incurred this period
Unit cost information
Beginning work in process..
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
Units of ending work in process
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
May 31
1107
Problem 20-6A (45 minutes)
1.
Units in beginning inventory …………………………………..
37,500
Units started and completed …………………………………..
Total units transferred to finished goods ………………..
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
Costs incurred this period…………………………
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
Costs to complete beginning work in process
Conversion (22,500 EUP x $2.17 per EUP)……..
Total costs to complete……………………………
Cost of units started and completed this period
Direct materials (150,000 EUP x $2.58 per EUP)…
Conversion (150,000 EUP x $2.17 per EUP)……
Total cost of units started and completed……..
Cost of ending work in process inventory
Conversion (10,250 EUP x $2.17 per EUP)……..
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
Conversion ………………………………………………………………
Costs incurred this period
Direct materials ……………………………………………………….
Total costs to account for …………………………………………..
Unit cost information
Beginning work in process..
Total units accounted for …………….
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
Direct materials (3,000 x 0%)…………
0 EUP
Conversion (3,000 x 60%)…………….
Units of ending work in process
Direct materials (2,400 x 100%)………
Conversion (2,400 x 80%)……………..
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.
Work in Process Inventory …………………………..
120,000
Raw Materials Inventory …………………………..
120,000
Used direct materials.
Raw Materials Inventory …………………………..
Direct labor used in production ……………………………………………….
350,000
Overhead applied (75% of direct labor cost) ……………………………..
Less ending work in process inventory ……………………………………
Beginning finished goods inventory ……………………………………….
$160,000
Goods available for sale ……………………………………………………….
798,500
Less ending finished goods inventory ……………………………………..
1113
Problem 20-1B (Continued)
d.
June 30
Work in Process Inventory …………………………..
350,000
Factory Wages Payable …………………………..
350,000
Used direct labor.
June 30
Factory Wages Payable …………………………..
Used indirect labor.
Cash ……………………………………………………….
400,000
Paid payroll cost.
Other Accounts ……………………………………………….
170,500
Incurred other overhead costs.
June 30
Work in Process Inventory …………………………..
262,500
Factory Overhead …………………………………………….
262,500
Applied overhead at 75% of direct labor cost.
June 30
638,500
Work in Process Inventory …………………………..
638,500
June 30
Accounts Receivable …………………………………………….
Sales ……………………………………………………….
Sold finished goods.
June 30
600,500
Finished Goods Inventory …………………………..
600,500
Record cost of goods sold for June.
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
Units completed & transferred out …………………..
Units of ending work in process ……………………..
Part 2
Cost per equivalent unit of production
Direct
Materials
Conversion
Costs of beginning work in process ………………
$ 58,000
$ 86,400
Costs incurred this period …………………………..
$770,000
88,000 EUP
Part 3: Assigning product costs to units
Costs transferred out
Direct materials (80,000 EUP x $8.75 per EUP) ………
$ 700,000
Conversion (80,000 EUP x $25.20 per EUP) …………..
Total costs transferred out …………………………………..
Cost of ending work in process
Direct materials (8,000 EUP x $8.75 per EUP) ………..
Conversion (2,000 EUP x $25.20 per EUP) …………….
Total costs of ending work in process ………………….
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
Conversion ………………………………………………………….
Costs incurred this period
Direct materials …………………………..……………………….
Conversion ………………………………………………………….
Total costs to account for ………………………………………
Unit cost information
Beginning work in process ………….
100,000
Units started this period ………………
12,000
Total units to account for …………….
Total units accounted for …………………………..
112,000
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out…
100,000 EUP
100,000 EUP
Units of ending work in process
112,000 EUP
103,000 EUP
Cost per EUP
Cost of beginning work in process…
Costs incurred this period……………
Cost per EUP……………………………
1117
Problem 20-3B (Concluded)
Cost assignment and reconciliation
Costs transferred out
Direct materials (100,000 EUP x $1.10 per EUP) ……
$110,000
Direct materials (12,000 EUP x $1.10 per EUP) ……..
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
Conversion………………………………………………
Costs incurred this period
Direct materials…………………………………………
Unit cost information
Units to account for
Units accounted for
Beginning work in process ………….
10,000
Completed & transferred out …..
220,000
Units started this period ……………..
Total units to account for …………….
Total units accounted for ……
260,000
Equivalent units of production
Direct
Materials
Conversion
Units completed & transferred out………
220,000 EUP
220,000 EUP
240,000 EUP
232,000 EUP
Cost per EUP
Costs incurred this period…………………
$665,840
240,000 EUP
232,000 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
Costs incurred this period
Direct materials …………………………..……………………….
Total costs to account for ………………………………………
Unit cost information
250,000
260,000
Total units accounted for ………
Equivalent units of production
Direct
Materials
Conversion
Units to complete beginning WIP
Units of ending work in process