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4-34
PROBLEM 4-35 (CONTINUED)
Cost of goods completed and transferred out during November:
Cost remaining in November 30 work-in-process inventory
Direct material:
Conversion
Check: Cost of goods completed and transferred out ........
$323,200
2.
a. Work-in-Process Inventory: Mixing Department ............
85,000
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
4-35
PROBLEM 4-36 (35 MINUTES)
1.
Conversion cost per unit in department I:
*produced units
overhead ingmanufactur labordirect
+
=
2.
Conversion cost per unit in department II:
*produced units
overhead ingmanufactur labordirect
+
=
3.
Cost of a clear glass sheet:
=
direct material per
unit in department I
+
conversion cost per
unit in department I
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
4-36
PROBLEM 4-36 (CONTINUED)
4.
Cost of an unetched, colored glass sheet:
=
cost per clear
glass sheet
+
direct material
per unit in department II
+
conversion cost per
unit in department II
5.
Cost of an etched, colored glass sheet:
=
cost per unetched
colored glass sheet
+
conversion cost per
unit in department III
PROBLEM 4-37 (60 MINUTES)
1.
The unit costs and total costs for each of the products manufactured by Plattsburg
Plastics Corporation during the month of March are calculated as follows:
Extrusion
Form
Trim
Finish
Units produced .....................
32,000
22,000
10,000
4,000
4-37
PROBLEM 4-37 (CONTINUED)
Unit Costs
Plastic
Sheets
Standard
Model
Deluxe
Model
Executive
Model
Material costs:
Extrusion ........................
$9.00
$9.00
$9.00
$9.00
Form ...............................
3.00
3.00
3.00
*Total costs accounted for:
Product
Total
Product Costs
Plastic sheets
$ 273,750
2.
Journal entries:
Work-in-Process Inventory: Extrusion .............................
876,000
Raw-Material Inventory ............................................
288,000
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
PROBLEM 4-37 (CONTINUED)
Finished-Goods Inventory .................................................
472,500
Work-in-Process Inventory: Forming .....................
472,500
4-39
PROBLEM 4-38 (45 MINUTES)
1.
Conversion costs:
Rolling
Molding
Punching
Dipping
Direct labor ..................................
$ 600,000
$224,000
$256,000
$ 90,000
4-40
PROBLEM 4-38 (CONTINUED)
2.
Product costs:
Ceralam
Sheets
Non
Sold
after
reflective
Ceralam
Relective
Ceralam
Total
Rolling
Housings
Housings
Costs
Direct material:
Ceralam sheets ....................
$ 960,000
$ 400,000
$ 240,000
$1,600,000
Conversion costs:
3.
Journal entries:
4-41
PROBLEM 4-38 (CONTINUED)
Finished-Goods Inventory ...............................................................
1,860,000*
*$1,860,000 = 6,000 ceralam sheets sold after
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
4-42
PROBLEM 4-38 (CONTINUED)
Finished-Goods Inventory ...............................................................
1,525,000*
Work-in-Process Inventory: Punching ................................
1,525,000
4. In the electronic version of the solutions manual, press the CTRL key and click on
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
4-43
SOLUTION TO CASE
CASE 4-39 (45 MINUTES)
1.
Equivalent units of material ....................................................................................
8,500
Equivalent units of conversion ...............................................................................
8,260
These answers are supported by the following process-costing schedules. The firm's cost
CALCULATION OF EQUIVALENT UNITS: LYCOMING LEATHER CO. - HARRISBURG PLANT
Weighted-Average Method
Physical
Units
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Direct
Material
Conversion
Work in process, October 1 ............
500
30%
Units started during October ..........
8,000
Chapter 04 - Process Costing and Hybrid Product-Costing Systems
4-44
CASE 4-39 (CONTINUED)
CALCULATION OF COSTS PER EQUIVALENT UNIT: HARRISBURG PLANT
Weighted-Average Method
Direct
Material
Conversion
Total
Work in process, October 1 ..............................
$ 2,000
$ 2,500
$ 4,500
ANALYSIS OF TOTAL COSTS: HARRISBURG PLANT
Weighted-Average Method
Cost of goods completed and transferred out during October:
Cost remaining in October 31 work-in-process inventory:
Direct material:
percost
of number
Conversion:
percost
of number
4-45
CASE 4-39 (CONTINUED)
5.
If the units were 50 percent complete as of October 31, there would be 8,300
equivalent units with respect to conversion. (To see this, just change the 160 in the
As controller, Jeff Daley has an ethical obligation to refuse his friend's
request to alter the estimate of the percentage of completion. What Daley can do is
to help Murray think of some legitimate ways to bring about real cost reductions.
Several ethical standards for management accountants (listed in Chapter 1) apply
in this situation. Among the relevant standards are the following:
Competence:
