CHAPTER 21
SOLUTONS TO PROBLEMS: SET B
PROBLEM 21–1B
1. Raw Materials Inventory ……………………………………… 25,000
Accounts Payable ……………………………………….. 25,000
2. Work in Process—Blending ………………………………… 18,930
Work in Process—Packaging ……………………………… 9,140
Raw Materials Inventory ………………………………. 28,070
PROBLEM 21–2B
(a)
Physical units
Total units
50,000
Units to be accounted for
Work in process, January 1
Started into production
Total units
0
50,000
50,000
(b)
Equivalent units
Materials
Conversion Costs
Units transferred out
Work in process, January 31
47,500
47,500
(c)
Unit Costs
Materials
$10.20 ($510,000 ÷ 50,000)
(d) Costs accounted for
Transferred out (47,500 X $15.20) ……………… $722,000
Work in process, January 31
PROBLEM 21-2B (Continued)
(e) STEINER CORPORATION
Molding Department
Production Cost Report
For the Month Ended January 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Units accounted for
Transferred out
Work in process, January 31
(2,500 X 40%)
Total units
Units to be accounted for
Work in process, January 1
Started into production
0
50,000
Costs
Materials
Conversion
Costs
Total
Total costs
Unit costs (Step 3)
Total cost
Equivalent units
(a)
(b)
$510,000
50,000
$242,500
48,500
$752,500
Cost Reconciliation Schedule (Step 4)
Total costs
Costs accounted for
Transferred out (47,500 X $15.20)
$722,000
PROBLEM 21–3B
(a) (1) Physical units
R12
Refrigerators
F24
Freezers
Units to be accounted for
Work in process, June 1
Started into production
Total units
0
20,000
20,000
0
20,000
20,000
(2) Equivalent units
R12 Refrigerators
Materials
Conversion
Costs
Units transferred out
16,000
16,000
F24 Freezers
Materials
Conversion
Costs
Units transferred out
Work in process, June 30
17,500
17,500
PROBLEM 21-3B (Continued)
(3) Unit costs
R12
Refrigerators
F24
Freezers
Materials ($840,000 ÷ 20,000)
($720,000 ÷ 20,000)
$42
$36
(4) R12 Refrigerators
Costs accounted for
Transferred out (16,000 X $77) …………. $1,232,000
Work in process
F24 Freezers
Costs accounted for
Transferred out (17,500 X $65) ………….. $1,137,500
Work in process
PROBLEM 21-3B (Continued)
(b) BORMAN CORPORATION
Stamping Department—Plant A
Production Cost Report
For the Month Ended June 30, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Transferred out
Work in process, June 30
Total units
Units to be accounted for
Work in process, June 1
0
Costs
Materials
Conversion
Costs
Total
Total costs
Unit costs (Step 3)
Total cost
Equivalent units
(a)
(b)
$840,000
20,000
$665,000
19,000
$1,505,000
Cost Reconciliation Schedule (Step 4)
Total costs
Costs accounted for
Transferred out (16,000 X $77)
$1,232,000
PROBLEM 21–4B
(a)
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Total units
35,000
460,000
Units to be accounted for
Work in process, October 1
Started into production
Total units
25,000
435,000
460,000
Beginning work in
process
Added during month
Materials cost
$ 29,000
1,006,000
Conversion costs
$ 16,500
246,900
($138,900 + $108,000)
(b)
Total costs
Costs accounted for
Transferred out (425,000 X $2.85)
$1,211,250
PROBLEM 21-4B (Continued)
(c) LUXMAN COMPANY
Assembly Department
Production Cost Report
For the Month Ended October 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Transferred out
Work in process, October 31
35,000
35,000
Total units
460,000
460,000
Units to be accounted for
Work in process, October 1
25,000
Costs
Materials
Conversion
Costs
Total
Total costs
$1,298,400
Unit costs (Step 3)
Total cost
(a)
$1,035,000
$263,400
$1,298,400
Cost Reconciliation Schedule (Step 4)
Total costs
$1,298,400
Costs accounted for
Transferred out (425,000 X $2.85)
$1,211,250
PROBLEM 21–5B
(a)
(1)
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Units to be accounted for
Work in process, May 1
Started into production
500
2,000
(2)
Materials cost
Conversion costs
Cost per unit
Beginning work in
process
Added during month
$15,000
50,000
$18,000
52,700
($19,020 + $33,680)
(3)
Costs accounted for
Transferred out (1,700 X $61)
$103,700
PROBLEM 21-5B (Continued)
(b) SWINN COMPANY
Bicycle Department
Production Cost Report
For the Month Ended May 31, 2017
Equivalent Units
Quantities
Physical
Units
Materials
Conversion
Costs
(Step 1)
(Step 2)
Transferred out
1,700
Work in process, May 31
(800 X .40)
Total units
2,500
2,500
Units to be accounted for
Work in process, May 1
500
Costs
Materials
Conversion
Costs
Total
Total costs
Unit costs (Step 3)
Total cost
Equivalent units
(a)
(b)
$65,000
2,500
$70,700
2,020
$135,700
Cost Reconciliation Schedule (Step 4)
Total costs
Costs accounted for
Transferred out (1,700 X $61)
$103,700
PROBLEM 21–6B
(a) Computation of equivalent units:
Equivalent Units
Physical
Units
Materials
Conversion
Costs
Units accounted for
Transferred out
66,000
66,000
66,000
Computation of March unit costs
Materials: $156,000 ÷ 78,000 equivalent units = $2.00
(b) Cost Reconciliation Schedule
Costs accounted for
Transferred out (66,000 X $3.40)……………….. $224,400
Work in process, March 31