Part a.
Physical
Units Materials Labor Overhead
80,000
400,000
480,000
80,000
280,000
360,000 360,000 360,000 360,000
120,000 120,000 48,000 48,000
480,000 480,000 408,000 408,000
Correct! Correct! Correct! Correct!
Total Costs Materials Labor Overhead
1,222,800$ 240,000$ 546,000$ 436,800$
5,534,400 1,560,000 2,208,000 1,766,400
6,757,200$ 1,800,000$ 2,754,000$ 2,203,200$
Correct! Correct! Correct! Correct!
3.75$
Correct! 6.75$
Correct! 5.40$
6,757,200$ 1,800,000$ 2,754,000$ 2,203,200$
Costs accounted for:
Materials
Labor
Overhead
Costs assigned to units transferred out:
Total costs accounted for
Total costs of units transferred out
Costs assigned to ending WIP:
Total ending WIP inventory
Overhead
Labor
Materials
Costs:
Details
Beginning WIP inventory
Units to be accounted for:
Materials
Labor
FREMONT CORPORATION
Production Cost Report – Weighted Average
Flow of production units:
Problem 08-57
Equivalent units
Units started this period
Total units to be accounted for
Units accounted for:
Units completed and transferred out:
From beginning inventory
Started and completed currently
Total transferred out
Units in ending WIP inventory
Total units accounted for
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Costs per equivalent unit
Overhead
Work in Finished
Process Goods
793,152$ 337,560$
1,033,200 318,000
(240,048)$ 19,560$
Correct! Correct!
Account Title Debit Credit
240,048
19,560
220,488 «– Correct!
Overstated/
Understated
Finished Goods would have been
Income would have been
Work in Process would have been
Cost of Goods Sold
Finished Goods
Work in Process
Part b. Adjustment required:
Prepare the journal entry below to adjust the accounts to the correct amounts
Part c.
Per problem statement
Correct
Difference
Unaudited
Units Costs
120,000 793,152$
20,000 337,560
Finished goods inventory at beginning of period
Percent of direct labor costs applied to overhead
WIP percentage of completion as to conversion costs
Direct Direct
Beginning inventory (80% completed as to labor)
Units started
Current costs
Units completed and transferred to finished goods inventory
Given Data P08-57:
Additional Inventory information:
Additional information:
Unaudited inventory balances:
Costs
FREMONT CORPORATION
Work-in-process inventory
Finished goods inventory
COMPUTE EQUIVALENT UNITS
Units to be accounted for:
Beginning WIP inventory
Units started this period
Flow of production units
Materials
Costs
DETAILS
Total units to be accounted for
Units accounted for:
PANTANAL, INC.
Production Cost Report – FIFO
Assembly Department
Problem 08-60
Units completed and transferred out:
From beginning inventory
Started and completed currently
Units In ending WIP inventory
Total units accounted for
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Costs per equivalent unit
Prior department cost
Conversion
Assembling Department beginning Work-in-process inventory:
Degree of
Costs Completion
98,000$ 100%
164,400 60%
61,000 40%
323,400$
127,500
2,142,000$
Percent complete with respect to conversion
Percent complete with respect to direct materials
Number of units
Units in inventory at end of August:
Total August costs
Conversion costs
Direct materials costs
Other costs incurred in August:
Given Data P08-60:
PANTANAL, INC.
Units
Transferred in from Molding Department in August:
Work-in-process balance (August 1)
Conversion costs
Direct materials costs
Transferred-in from Molding
Beginning inventory (12,500 units)
Cost of units transferred
Work-in-process
Material Number of Unit Material
Product Cost Units Cost
X-10 75,000$ 500$ 150$ «- Correct!
X-20 135,000 300 450 «- Correct!
X-40 240,000 200 1,200 «- Correct!
Physical Conv. Costs
Units Equiv. Units
–
1,000
1,000
1,000 880
Units accounted for:
Completed and transferred out
Units in ending inventory
Total units accounted for
Conversion
Flow of costs
Cost per equivalent unit conversion cost
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to e accounted for
WASHINGTON, INC.
Problem 08-66
Department A:
The conversion costs per equivalent unit are:
The material costs per unit are:
Part a.
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Flow of units
Physical Conv. Costs
Units Equiv. Units
–
440
440
Correct!
390 390
50
30
440 420
Correct! Correct!
Conversion
Total Costs
–$ –$
42,000 42,000
42,000$ 42,000$
100$
Correct!
Unit Unit Unit
Material Department Department Unit
Product Cost A Cost B Cost Cost
X-10 150$ 300$ –$ 450$ «- Correct!
X-20 450 300 100 850 «- Correct!
X-40 1,200 300 100 1,600 «- Correct!
Material Number of Units Total
Material Number of Units Total
Department B:
Total costs to be accounted for
Units started this period
Department B:
Flow of units
Units to be accounted for:
Beginning WIP inventory
Current period costs
Flow of costs
Total units to account for
Units accounted for:
Completed and transferred out
Units in ending inventory
Conversion costs
Total units accounted for
Costs to be accounted for:
Costs in beginning WIP inventory
Work-in-Process Ending Inventory Balances are:
Part b.
Department A:
Cost per equivalent unit conversion cost
Cost of units transferred to finished goods:
Total X-10 X-20 X-40
500 300 200
400 260 180
225 165
450,000$ 75,000$ 135,000$ 240,000$
264,000
42,000
306,000
Percent ending WIP is complete in Department B
Percent ending WIP is complete in Department A
Given Data P08-66:
Data for April
Total conversion costs
Department B
Department A
Conversion costs:
Units completed in Department A
Units completed in Department B
Materials
WASHINGTON, INC.
Units started