HW5 - Healy Shen Section 302 6 March 2015 Q4-1 Q4-4 E4-1...

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Healy Shen Section 302 6 March 2015 Q4-1, Q4-4, E4-1, E4-3, P4-15, E4A-7, P4B-6 Q4-1. A process costing system should be used when a homogeneous product is produced on a continuous basis. Q4-4. A WIP account is added for each processing department. E4-1. a. Work in Progress – Molding 23000 Raw Materials 23000 Work in Progress – Firing 8000 Raw Materials 8000 b. Work in Progress – Molding 12000 Salaries and Wages Payable 12000 Work in Progress – Firing 7000 Salaries and Wages Payable 7000 c. Work in Progress – Molding 25000 Manufacturing Overhead 25000 Work in Progress – Firing 37000 Manufacturing Overhead 37000 d. Work in Progress – Firing 57000 Work in Progress - Molding 57000 e. Finished Goods 103000 Work in Progress - Firing 103000 f. Cost of Goods Sold 101000 Finished Goods 101000 E4-3. 1. Materials = 256900/35000 = $7.34 per equivalent unit. Labor = $2.6. Manufacturing overhead = $13. 2. Total cost per equivalent unit = 7.34 + 2.6 + 13 = $22.94 per equivalent unit. P4-15. 1. In materials, there are 160000 + 1 * 40000 = 200,000 e.u. In conversion, 170,000 e.u. 2. In materials, $1.8 per e.u. In conversion, $1.55 per e.u. 3. Total cost of ending WIP inventory in materials is 40000 * 1.8 + 10000 * 1.55 = $87,500.

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