CHAPTER 21
SOLUTIONS TO EXERCISES—SET B
EXERCISE 21–1B
(a) April 30 Work in Process—Cooking …………………. 27,000
Work in Process—Canning …………………. 10,000
Raw Materials Inventory……………….. 37,000
EXERCISE 21–2B
(a) Work in process, May 1 500
Started into production 1,350
(b)
Equivalent Units
Materials
Conversion Costs
Units transferred out
Work in process, May 31
1,350
1,350
EXERCISE 21-2B (Continued)
(c) $7,905 ÷ 1,550 = $5.10
EXERCISE 21–3B
1. Raw Materials Inventory …………………………………… 64,300
Accounts Payable …………………………………….. 64,300
4. Work in Process—Cutting ………………………………… 16,400
Work in Process—Assembly ……………………………. 9,900
Raw Materials Inventory ……………………………. 26,300
8. Finished Goods Inventory ………………………………… 136,000
Work in Process—Assembly ……………………… 136,000
EXERCISE 21–4B
(a)
January
May
Units to be accounted for
Beginning work in process
0
0
(b)
(1)
Materials
(2)
Conversion Costs
11,500 (10,000 + 1,500)
January
March
12,000 ( 9,000 + 3,000)
16,000 (12,000 + 4,000)
10,800 ( 9,000 + 1,800)
13,200 (12,000 + 1,200)
EXERCISE 21–5B
(a)
Materials
Conversion Costs
Units transferred out
Work in process, July 31
12,000
12,000
(b) Materials: $65,475 ÷ 13,500 = $4.85
Conversion costs: ($22,200 + $28,845) ÷ 12,450 = $4.10
EXERCISE 21–6B
JOSE FURNITURE COMPANY
Sanding Department
Production Cost Report
For the Month Ended March 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
Units accounted for
Work in process, March 31
(4,000 X 30%)
Total units
Units to be accounted for
Work in process, March 1
0
Costs
Materials
Conversion
Costs
Total
Unit costs
Costs in March
$60,000
$77,470
$137,470
Cost Reconciliation Schedule
Costs accounted for
Transferred out (11,000 X $10.35)
$113,850
EXERCISE 21–7B
(a)
Materials
Conversion
Costs
Units transferred out
Work in process, April 30
18,000
18,000
(b)
Materials
Conversion
Costs
Total
Costs in April
Equivalent units
Unit costs
$808,000(1)
20,000
$40.40
$385,700(2)
19,000
$20.30
$1,193,700
$60.70
EXERCISE 21–8B
(a) Materials: 32,000 + 8,000 = 40,000
Conversion costs: 32,000 + (8,000 X 40%) = 35,200
EXERCISE 21–9B
(a) Materials: 55,000(1) + 30,000 = 85,000
Conversion costs: 55,000 + (30,000 X 60%) = 73,000
EXERCISE 21-10B
(a)
Physical
Units
Work in process, September 30
Equivalent Units
Materials
Conversion Costs
Units transferred out
Work in process
11,800
11,800
EXERCISE 21-10B (Continued)
(b)
Materials
Work in process, September 1
Direct materials
$ 32,000
Conversion Costs
Work in process, September 1
Conversion costs
$ 29,100
(c) Costs accounted for
Transferred out (11,800 X $43.05) ……………. $507,990
Work in process, September 30
EXERCISE 21-11B
HANSON MANUFACTURING COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Work in process, February 28
Total units
Units to be accounted for
Work in process, February 1
Started into production
27,000
60,000
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in February
Equivalent units
Unit costs (a) ÷ (b)
(a)
(b)
$193,140(1)
87,000
$2.22
$101,808(2)
60,600
$1.68
$294,948
$3.90
Cost Reconciliation Schedule (Step 4)
Costs accounted for
Transferred out (54,000 X $3.90)
$210,600
EXERCISE 21-12B
(a)
Containers in transit, April 1
0
Containers loaded
800
Total containers
800
Containers off-loaded
350
Containers in transit, April 30
Total containers
800
Equivalent Units
(b)
Physical
Units
Direct
Materials
Conversion
Costs
Containers off-loaded
350
350
350
Containers in transit, April 30
450
180*
135**
Total equivalent units
EXERCISE 213-13B
(a)
Materials
Conversion
Costs
Applications transferred out
800
800
Work in process, September 30
300*
180**
Equivalent units
1,100
(b)
Materials: $6,270 ÷ 1,100 = $5.70
Conversion costs: $22,540* ÷ 980 = $23
Costs accounted for:
Transferred out (800 X $28.70) …………………….
Work in process, September 30
Materials (300 X $5.70) ………………………….
Conversion costs (180 X $23) ……………….
Total costs …………………………………………………
*EXERCISE 21-14B
Equivalent Units
(a)
Physical
Units
Materials
Conversion
Costs
Applications completed:
Work in process, September 1
100
0
50
Started and completed
Work in process, September 30
Total units
1,100
1,000
(b)
Materials: $5,270 ÷ 1,000 = $5.27
Conversion costs: $18,540* ÷ 930 = $19.94
Costs accounted for:
Applications completed:
Work in process, September 1 …………..
$5,000
Started and completed (700 X $25.21) ..
5,170
Total costs ……………………………………………
*EXERCISE 21-15B
(a) (1) Materials:
Production Data
Physical
Units
Materials Added
This Period
Work in process, August 1
0
%100
(2) Conversion Costs:
Production Data
Physical
Units
%
Equivalent
Units
Work in process, August 1
0
0
0
(b) Unit costs are:
Materials $45,000 ÷ 10,000 = $4.50
Costs to Be
Assigned
Assignment of Costs
Equivalent
Units
Unit
Cost
Total Costs
Assigned
Total mfg. costs
Transferred out
$78,440 (1)
Work in process, August 1
Started and completed
0
8,000
$0
$8.30
$ 0
66,400
$66,400
Work in process, August 31
*EXERCISE 21-16B
(a)
(1)
Materials
Physical
Units
Materials Added
This Period
Equivalent
Units
Work in process,
September 1
1,000
Q
0%
0
(2)
Conversion Costs
Physical
Units
Work Added
This Period
Equivalent
Units
Work in process,
September 1
1,000
80%
800
(b) Materials $ 63,000 ÷ 9,000 = $ 7.00
(c)
Costs to Be
Assigned
Assignment of Costs
Equivalent
Units
Unit
Cost
Total Costs
Assigned
Total mfg. costs
Transferred out
Total costs transferred out
Total costs
Work in process, 9/1
0
$ 0
$16,000
*EXERCISE 21-17B
(a) Work in process, March 1 800
Started into production 1,200
(b) Materials:
Production Data
Physical
Units
Materials Added
This Period
Equivalent
Units
Work in process, March 31
Work in process, March 1
800
%100
0
(c) Conversion costs:
Production Data
Physical
Units
Work Added
This Period
Equivalent
Units
Work in process, March 1
800
70%
560
(d) In process, March 1 …………………………………………………. $3,000
Conversion costs (560 X $2.40) ………………………………… 1,344
Total cost ……………………………………………………………….. $4,344
*EXERCISE 21-18B
HOLSUM MANUFACTURING COMPANY
Welding Department
Production Cost Report
For the Month Ended February 28, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units to be accounted for
Work in process, February 1
Units accounted for
Completed and transferred out
12,000
Total units
Work in process, February 1
Started and completed
Total
12,000
53,000*
65,000
0
53,000
53,000
10,800
53,000
63,800
(12,000 X 90%)
Costs
Materials
Conversion
Costs
Total
Unit costs (Step 3)
Costs in February
(a)
$179,400
(1)
$110,080
(2)
$289,480
*EXERCISE 21-18B (Continued)
Cost Reconciliation Schedule
Costs accounted for (Step 4)
Transferred out
Work in process, February 1
Costs to complete beginning
$21,000