4-21
PROBLEM 4-29 (40 MINUTES)
1.
a. Equivalents units:
Physical
Units
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Direct
Material
Conversion
Work in process, June 1 ………………
30,000
35%
Units started during June …………….
34,000
Total units to account for …………….
64,000
Units completed and
transferred out during June ……..
40,000
100%
40,000
40,000
Work in process, June 30 …………….
24,000
75%
24,000
Total units accounted for …………….
64,000
_____
Direct
Material
Conversion
Total
Total costs to account for
$348,800
$2,844,900
4-22
PROBLEM 4-29 (CONTINUED)
c.
Cost of goods completed and transferred out during June:
Cost remaining in June 30 work-in-process inventory:
Direct material:
percost
of number
Conversion:
Total cost of June 30 work in process ………………………………………….. $1,013,700
Check: Cost of goods completed and transferred out ……………………….
Total costs accounted for …………………………………………………….
percost
of number
2.
Journal entry:
Finished-Goods Inventory ……………………………………….
Work-in-Process Inventory ……………………………………………………….
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-23
PROBLEM 4-30 (35 MINUTES)
1. Direct material cost was $1,390,000:
JR1163 ………………………….
$ 225,000
JY1065 ………………………….
710,000
DC0766 ………………………….
455,000
Total ………………………..
$1,390,000
Direct labor……………………………….……..
$134,274
Overhead applied (6,394 hours x $69)……..
Total…………………………………………..
$575,460
2. Goods completed during April cost $2,002,000 (26,000 units x $77) as the following
calculations show:
Physical
Units
Percentage
Of
Completion
With
Respect to
Conversion
Equivalent Units
Direct
Material Conversion
Work in process, April 1……………….
3,000
80%
Units started during April……………..
Total units to account for……………..
Work in process, April 30……………..
4,000
Total units accounted for………………
Total equivalent units…………………..
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-24
PROBLEM 4-30 (CONTINUED)
Direct
Material
Conversion
Total
Work in process, April 1……………………
$ 230,000
$ 63,940
$ 293,940
Costs incurred during April……………….
Total costs to account for………………….
$1,620,000
$639,400
$2,259,400
Equivalent units………………………………
Cost per equivalent unit……………………
3. The cost of the ending work-in-process inventory is $257,400:
Direct material (4,000 x $54)……..
$216,000
Conversion cost (1,800 x $23)…..
41,400
Total…………………………….
$257,400
4. (a) No material would be added during May. All material is introduced at the start
5. Given that the ending work-in-process inventory is at the 45% stage of completion,
4-25
PROBLEM 4-31 (50 MINUTES)
The missing amounts are shown below. A completed production report follows.
Work in process, October 1 (in units) …………………………………………………………
10,000
Units completed and transferred out during October …………………………………..
75,000
Total equivalent units: conversion ……………………………………………………………..
78,500
Work in process, October 1: conversion …………………………………………………….
$ 30,225
Costs incurred during October: direct material …………………………………………..
Cost per equivalent unit: conversion ………………………………………………………….
Cost of goods completed and transferred out during October ……………………..
Cost remaining in ending work-in-process inventory: direct material …………..
PRODUCTION REPORT: FANTASIA FLOUR MILLING COMPANY
Weighted-Average Method
Percentage
of
Completion
with
Equivalent Units
Physical
Respect to
Direct
Units
Conversion
Material
Conversion
Work in process, October 1 ……….
10,000
15%
Units started during October ……..
70,000
Total units to account for …………..
80,000
Units completed and transferred
out during October …………..
75,000
75,000
75,000
Work in process, October 31 ……..
70%
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-26
PROBLEM 4-31 (CONTINUED)
Direct
Material
Conversion
Total
Work in process, October 1 ……….
$112,000
$ 30,225
$ 142,225
Costs incurred during October …..
Total costs to account for ………….
$712,000
$1,642,225
Equivalent units ………………………..
80,000
Costs per equivalent unit …………..
$20.75**
*$8.90 = $712,000 ÷ 80,000
**$20.75 = $8.90 + $11.85
4-27
PROBLEM 4-31 (CONTINUED)
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
Total cost of October 31 work-in–process ……………………………………………….. $85,975
Check: Cost of goods completed and transferred out …… $1,556,250
Cost of October 31 work-in-process inventory ….. 85,975
Total costs accounted for ………………………………… $1,642,225
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-28
PROBLEM 4-32 (30 MINUTES)
Physical
Units
Percentage
Of
Completion
With
Respect to
Conversion
Equivalent Units
__________________
Direct
Material Conversion
________
__________
______
__________
Work in process, June 1……………….
200
25%
Units started during June……………..
800
Total units to account for………………
1,000
Units completed and transferred
during June…………………………..
600
100%
600
600
Work in process, June 30………………
400
75%
Total units accounted for………………
1,000
Total equivalent units…………………..
Direct
Material
Conversion
Total
_______
__________
______
Work in process, June 1……………………
$12,000
$ 6,000
$18,000
Costs incurred during June……………….
Total costs to account for………………….
$55,000
$36,000
$91,000
Equivalent units………………………………
Cost per equivalent unit…………………….
3. The cost of the June 30 work-in-process inventory is $34,000:
Direct material (400 x $55)………
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-29
PROBLEM 4-32 (CONTINUED)
4. Equivalent units measure the amount of manufacturing activity (i.e., for direct
material or conversion) that has been applied to a batch of physical units. If, for
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-30
PROBLEM 4-33 (30 MINUTES)
1.
a. Equivalent units:
Percentage
of
Completion
with Respect
Tax
to
Returns
Conversion
(physical
(labor and
Equivalent Units
units)
overhead)
Labor
Overhead
Returns in process, February 1 …..
300
20%
Returns started in February ………..
Total returns to account for ………..
Returns completed
during February ……………………
800
Returns in process, February 28 …
75%
Total returns accounted for ………..
b. Costs per equivalent unit:
Labor
Overhead
Total
Returns in process, February 1 ……………….
£ 3,500
£ 4,000
£ 7,500
Costs incurred during February ………………
Total costs to account for ……………………….
Equivalent units ……………………………………..
1,100
Costs per equivalent unit ………………………..
£50.00
2.
Cost of returns in process on February 28:
Labor: equivalent unitscost per equivalent unit
Overhead: equivalent unitscost per equivalent unit
Total cost of returns in process on February 28 …………………………………..
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-31
PROBLEM 4-34 (50 MINUTES)
The missing amounts are shown below. A completed production report follows.
Units started during January ……………………………………………………………………..
55,000
Units completed and transferred out during January …………………………………..
60,000
Total equivalent units: conversion ……………………………………………………………..
66,000
Work in process, January 1: conversion …………………………………………………….
Costs incurred during January: direct material …………………………………………..
Cost per equivalent unit: conversion ………………………………………………………….
Cost of goods completed and transferred out during January ……………………..
Cost remaining in ending work-in-process inventory: direct material …………..
PRODUCTION REPORT: CANANDAIGUA CARPET COMPANY
Weighted-Average Method
Physical
Units
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Direct
Material
Conversion
Work in process, January 1 …………
25,000
25%
Units started during January ……….
55,000
Total units to account for …………….
80,000
Work in process, January 31 ……….
20,000
30%
Total units accounted for …………….
80,000
4-32
PROBLEM 4-34 (CONTINUED)
Direct
Material
Conversion
Total
Work in process, January 1 …………………………
$232,000
$110,600
$ 342,600
Costs incurred during January …………………….
Total costs to account for …………………………...
$930,600
$1,562,600
Equivalent units ………………………………………….
Costs per equivalent unit …………………………….
Cost of goods completed and transferred out during January:
Cost remaining in January 31 work-in-process inventory:
Direct material:
percost
of number
Conversion:
percost
of number
Total cost of January 31 work in process ………………………………………..
Check: Cost of goods completed and transferred out ..
Chapter 04 – Process Costing and Hybrid Product-Costing Systems
4-33
PROBLEM 4-35 (45 MINUTES)
1.
PRODUCTION REPORT: MIXING DEPARTMENT
(Weighted-Average Method)
November 20×5
Percentage
of
Completion
with
Equivalent Units
Physical
Respect to
Direct
Units
Conversion
Material
Conversion
Work in process, November 1 …….
5,000
70%
Units started during November ….
17,000
Total units to account for …………..
22,000
Units completed and transferred
out during November ……….
16,000
100%
16,000
16,000
Work in process, November 30
30%
Total units accounted for …………..
22,000
____ _
_ ____
Direct
Material
Conversion
Total
Work in process, November 1 …….
$ 31,600
$ 55,220
$ 86,820
Costs incurred during November .
Total costs to account for ………….
$381,820
Equivalent units ………………………..
Costs per equivalent unit …………..
$5.30
*$85,000 = $16,000 + $44,000 + (5,000 ÷ 12,000)($60,000)