Accounting Theory Quiz 19.pdf - Worksheet Learning...

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Unformatted text preview: Worksheet Learning Objective: 06­02 Compute the equivalent units of production using the weighted­average method. 41. Award: 10.00 points Problems? Adjust credit for all students. Ainsley Industries uses the weighted­average method in its process costing system. Data for the Assembly Department for May appear below: Work in process, May 1 Cost added during May Equivalent units of production $ $ Materials Labour Overhead 28,000 $ 22,000 $ 117,500 52,000 $ 18,500 $ 63,600 1,500 800 1,200 Required: Compute the cost per equivalent unit for materials, for labour, for overhead, and in total. (Round your answers to 2 decimal places.) Materials Cost per equivalent unit $ 53.33 Labour $ 50.63 Overhead $ 150.92 Total F $ 254.88 Explanation: Weighted­Average method Costs per equivalent unit: Work in process, May 1 Cost added during May Total cost (a) Equivalent units of production (b) Cost per equivalent unit (a) ÷ (b) $ Total Cost 167,500 134,100 $ $ 301,600 $ 80,000 $ 40,500 $ 181,100 $ 1,500 53.33 $ 800 50.63 $ 1,200 150.92 Total cost per equivalent Unit = $53.33 + $50.63 + $150.92 = $254.88 References Worksheet Learning Objective: 06­ 03 Compute the cost per equivalent unit using the weighted­ average method. Materials Labour Overhead 28,000 $ 22,000 $ 117,500 52,000 18,500 63,600 42. Award: 10.00 points Problems? Adjust credit for all students. Superior Micro Products uses the weighted­average method in its process costing system. Data for the Assembly Department for May appear below: Work in process, May 1 Cost added during May Equivalent units of production $ $ Materials 18,000 $ 238,900 $ 35,000 Labour Overhead 5,500 $ 27,500 80,300 $ 401,500 33,000 33,000 Required: 1. Compute the cost per equivalent unit for materials, for labour, and for overhead. (Round your answers to 2 decimal places.) Materials Cost per equivalent unit $ Labour 7.34 $ 2.60 Overhead $ 13.00 2. Compute the total cost per equivalent whole unit. (Round your final answer to 2 decimal places.) Total cost per equivalent unit $ 22.94 Explanation: Weighted­Average Method: 1. Cost of beginning work in process inventory Cost added during the period Total cost (a) Equivalent units of production (b) Cost per equivalent unit (a) ÷ (b) $ Materials 18,000 $ 238,900 $ 256,900 $ 85,800 $ 429,000 $ 35,000 7.34 $ 33,000 2.60 $ 33,000 13.00 2. Cost per equivalent unit for materials Cost per equivalent unit for labour Cost per equivalent unit for overhead Total cost per equivalent unit Hints References $ 7.34 2.60 13.00 $ 22.94 Labour Overhead 5,500 $ 27,500 80,300 401,500 Hint #1 ...
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