ORIE_3150_Homework__9_ANSWERS_student_version

ORIE_3150_Homework__9_ANSWERS_student_version - ORIE 3150...

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ORIE 3150 Homework #9 1. Ben Stiller Winery manufactures fine wine in two departments, Fermenting and Bottling. Cost and production data for the Fermenting Department for December are presented below: Cost data Beginning work in process inventory $ 46,000 ($30,000 materials) Materials 425,880 Conversion costs 161,240 Total costs $633,120 Production data Beginning work in process (gallons) 10,000 Gallons started into production 55,000 Ending work in process (gallons) 8,000 The beginning WIP is 80% complete for materials, 30% for conversion The ending WIP is 70% complete for materials, 20% for conversion. Using FIFO process costing: a. Compute the equivalent units of production. You simply have to follow the equation sheet: Materials: EUOP = 2000 + 47000 + 5600 = 54600 Conversion: EUOP = 7000 + 47000 + 1600 = 55600 b. Determine the unit production costs (cost per EU). Materials: 425880/54600 = $7.80 per unit Conversion: 161240/55600 = $2.90 per unit c. Determine the costs to be assigned to units transferred out and ending work in process. Materials: 30,000 + 2000(7.80) + 47000(7.80) = 412200 Conversion: 16000 + 7000(2.90) + 47000(2.90) = 172600 Total: $584,800 trans. Materials: 5600(7.80) = 43680 Conversion: 1600(2.90) = 4640 Total: $48,320 ending WIP.
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2. Water Guide Company manufactures boats. Motors and hulls are kept track of separately.
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ORIE_3150_Homework__9_ANSWERS_student_version - ORIE 3150...

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