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Process Costing in Sequential Production Departments: Weighted-Average Method
Solutions Manual
to accompany
Process Costing in Sequential
Production Departments:
Weighted-Average Method
to accompany
MANAGERIAL
ACCOUNTING
Tenth Edition
Process Costing in Sequential Production Departments: Weighted-Average Method
Preface
The best way for most students to learn managerial accounting is to read the text and then
solve a representative sample of the review questions, exercises, problems and cases. The
topic of each exercise, problem, and case is indicated in the text. The estimated amount of
Process Costing in Sequential Production Departments: Weighted-Average Method
Supp 4-1
ANSWERS TO REVIEW QUESTIONS
Process Costing in Sequential Production Departments: Weighted-Average Method
Supp 4-2
SOLUTIONS TO EXERCISES
EXERCISE 3 (10 MINUTES)
1.
Work-in-Process Inventory: Pouring Department ...............
1,090,000
3.
Work-in-Process Inventory: Finishing Department .............
725,000
EXERCISE 4 (10 MINUTES)
1.
Work-in-Process Inventory: Preparation Department .........
1,635,000
3.
Work-in-Process Inventory: Finishing Department .............
1,087,500
Process Costing in Sequential Production Departments: Weighted-Average Method
Supp 4-3
SOLUTIONS TO PROBLEMS
PROBLEM 5 (30 MINUTES)
1.
a.
Cost of units completed and transferred to finished-goods inventory during
February:
Units completed and transferred out..............................................
5,950
b.
To compute the cost of the Finishing Department's work-in-process inventory
on February 28, first determine the number of units in ending work-in-
process inventory, as follows:
Then compute the transferred-in, direct-material, and conversion costs in the
February 28 work-in-process inventory:
Input
Equivalent
Units
Cost per
Equivalent
Unit
Cost
2.
Equivalent units of transferred-in costs ...................................................
7,700
Supp 4-4
PROBLEM 6 (30 MINUTES)
1.
a.
Cost of units completed and transferred to finished-goods inventory during
May:
b.
To compute the cost of the Finishing Department's work-in-process inventory
on May 31, first determine the number of units in ending work-in-process
inventory, as follows:
Work-in-process inventory, May 1 (in units) ..................................
1,400
Then compute the transferred-in, direct-material, and conversion costs in the
May 31 work-in-process inventory:
Input
Equivalent
Units
Cost per
Equivalent
Unit
Cost
2.
Equivalent units of transferred-in costs ...................................................
15,400
Process Costing in Sequential Production Departments: Weighted-Average Method
Supp 4-5
SOLUTIONS TO CASES
CASE 7 (60 MINUTES)
PRODUCTION REPORT: HOME GARDEN COMPANY - GRADING DEPARTMENT
Weighted-Average Method
Physical
Units
(pounds)
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Direct
Material
Conversion
Work in process, November 1 .........
-0-
—
Direct
Material
Conversion
Total
Work in process, November 1 ...........................
-0-
-0-
-0-
Cost of goods completed and transferred out of the Grading Department
during November:
Cost remaining in November 30 work-in-process inventory in the
Grading Department .....................................................................................
-0-
Process Costing in Sequential Production Departments: Weighted-Average Method
Supp 4-6
CASE 7 (CONTINUED)
PRODUCTION REPORT: HOME GARDEN COMPANY - FINISHING DEPARTMENT
Weighted-Average Method
Physical
Units
(pounds)
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Transferred
in
Conversion
Work in process, November 1 .........
1,600
50%
Units completed and transferred
out during November ..................
35,600
100%
35,600
35,600
Transferred
In
Conversion
Total
Work in process, November 1 ...........................
$ 13,850
$ 3,750
$ 17,600
Supp 4-7
CASE 7 (CONTINUED)
Cost of goods completed and transferred out of the Finishing
Department during November:
Cost remaining in November 30 work-in-process inventory in the
Finishing Department:
Transferred-in costs:
in-dtransferre
of number
Direct material:
None
Conversion:
conversion
of number
Total cost of November 30 work in process ...........................................
$21,914
Check: Cost of goods completed and transferred out .............
$433,686
†Rounded
Supp 4-8
CASE 8 (60 MINUTES)
PRODUCTION REPORT: AGRITECH, INC. - MIXING DEPARTMENT
Weighted-Average Method
Physical
Units
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Direct
Material
Conversion
Work in process, September 1 ........
-0-
—
Units completed and transferred
Direct
Material
Conversion
Total
Work in process, September 1 ..........................
-0-
-0-
-0-
Cost of goods completed and transferred out of the Mixing Department
during September:
Cost remaining in September 30 work-in-process inventory in the
Mixing Department ........................................................................................
-0-
Supp 4-9
CASE 8 (CONTINUED)
PRODUCTION REPORT: AGRITECH, INC. - SATURATING DEPARTMENT
Weighted-Average Method
Physical
Units
Percentage
of
Completion
with
Respect to
Conversion
Equivalent Units
Transferred
in
Conversion
Work in process, September 1 ..................
2,000
40%
Units completed and transferred
Transferred
In
Conversion
Total
Work in process, September 1 ..........................
$ 41,000
$ 24,600
$ 65,600
Supp 4-10
CASE 8 (CONTINUED)
Cost of goods completed and transferred out of the Saturating
Department during September:
Cost remaining in September 30 work-in-process inventory in the
Saturating Department:
Transferred-in costs:
Direct material:
None
Conversion:
conversion
of number
