cost ch 6

# cost ch 6 - 64 1 Physical flow schedule Units beginning WIP...

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6–4 1. Physical flow schedule: Units, beginning WIP. ........... 0 Units completed. ...................... 350,000 Units started 370,000 Units, ending WIP. ......................................... 20,000 Units to account for 370,000 Units accounted for. ....................................... 370,000 2. (a) Direct Materials (b) Conversion Costs Completed 350,000 350,000 Ending WIP: (20,000 × 100%) 20,000 (20,000 × 80%) ...... 16,000 Equivalent units 370,000 366,000 3. a. Unit direct materials = \$1,850,000/370,000 = \$ 5.00 b. Unit conversion costs = (\$366,000 + \$823,500*)/366,000 = 3.25 c. Total manufacturing unit cost = \$ 8.25 *Overhead applied: Direct labor cost: 1.5 × \$366,000 = \$549,000 Inspections: \$20 × 3,725 = 74,500 Purchasing: \$500 × 400 = 200,000 Total \$823,500 4. a. Cost of units transferred out: 350,000 × \$8.25 = \$2,887,500 b. Journal entry: Work in Process—Welding. ................................. 2,887,500 Work in Process—Plate Cutting. ................ 2,887,500 c. Cost of EWIP = (20,000 × \$5.00) + (16,000 × \$3.25) = \$152,000

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6–6 1. Physical flow schedule: Units, beginning work in process. ..................................... 60,000 Units started. ....................................................................... 75,000 Units to account for. ........................................................... 135,000 Units completed and transferred out: Started and completed. ................................................ 63,000 From beginning work in process. ................................ 60,000 Units, ending work in process. ........................................... 12,000 Total units accounted for. .................................................. 135,000 2. Equivalent units—Weighted average method: Direct Materials Conversion Costs Units completed. ......................................... 123,000 123,000 Units, ending work in process: 12,000 × 100%. .................................... 12,000
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cost ch 6 - 64 1 Physical flow schedule Units beginning WIP...

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