Chapter 17 - 17-1 CHAPTER 17 PROCESS COSTING17-19 (15 min.)...

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Unformatted text preview: 17-1 CHAPTER 17 PROCESS COSTING17-19 (15 min.) Weighted-average method,equivalent units. Under the weighted-average method, equivalent units are calculated as the equivalent units of work done to date. Solution Exhibit 17-19 shows equivalent units of work done to date for the Satellite Assembly Division of Aerospatiale for direct materials and conversion costs. SOLUTION EXHIBIT 17-19 Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2007. (Step 2) (Step 1) Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process beginning (given) 8 Started during current period (given) 50To account for 58Completed and transferred out during current period 46 46.0 46.0 Work in process, ending* (12 60%; 12 30%) (given) 127.2 3.6 Accounted for 58____ ____ Work done to date 53.249.6*Degree of completion in this department: direct materials, 60%; conversion costs, 30%. 17-2 17-20 (20 min.) Weighted-average method, assigning costs (continuation of 17-19).Solution Exhibit 17-20 calculates cost per equivalent unit of work done to date in the Satellite Assembly Division of Aerospatiale, summarizes total costs to account for, and assigns costs to units completed and to units in ending work-in-process inventory. SOLUTION EXHIBIT 17-20 Steps 3, 4, and 5: Compute Cost per Equivalent Unit, Summarize Total Costs to Account For, and Assign Total Costs to Units Completed and to Units in Ending Work in Process; Weighted-Average Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2007. Total Production Costs Direct Materials Conversion Costs (Step 3) Work in process, beginning (given) $ 5,844,000 $ 4,933,600 $ 910,400 Costs added in current period (given) 46,120,000 32,200,00013,920,000Costs incurred to date $37,133,600 $14,830,400 Divide by equivalent units of work done to date (Solution Exhibit 17-19) 53.249.6Cost per equivalent unit of work done to date $ 698,000$ 299,000(Step 4) Total costs to account for $51,964,000(Step 5) Assignment of costs: Completed and transferred out (46 units) 45,862,000 (46*$698,000) + (46* $299,000)Work in process, ending (12 units) 6,102,000(7.2$698,000) + (3.6 $299,000)Total costs accounted for $51,964,000*Equivalent units completed and transferred out from Solution Exhibit 17-19, Step 2. Equivalent units in work in process, ending from Solution Exhibit 17-19, Step 2. 17-3 17-21(15 min.) FIFO method, equivalent units. Under the FIFO method, equivalent units are calculated as the equivalent units of work done in the current period only. Solution Exhibit 17-21 shows equivalent units of work done in May 2007 in the Satellite Assembly Division of Aerospatiale for direct materials and conversion costs....
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This homework help was uploaded on 03/27/2008 for the course ACCT 3270 taught by Professor Olvera during the Spring '08 term at North Texas.

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Chapter 17 - 17-1 CHAPTER 17 PROCESS COSTING17-19 (15 min.)...

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