Process Costing - Week 7 solution guide Chapters 21 &...

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Week 7 solution guide EXERCISE 21-3 (a) Work in process, May 1 400 Started into production 1,100 Total units to be accounted for 1,500 Less: Transferred out 1,200 Work in process, May 31 300 (b) Equivalent Units Materials Conversion Costs Units transferred out Work in process, May 31 300 X 100% 300 X 40% 1,200 300 1,500 1,200 120 1,320 Direct Materials Conversion Costs Work in process, May 1 Costs added Total materials cost $2,040 5,160 $7,200 $1,550 4,390 $5,940 $7,200 ÷ 1,500 = $4.80 (c) $5,940 ÷ 1,320 = $4.50 (d) Transferred out (1,200 X $9.30) $11,160 (e) Work in process Materials (300 X $4.80) $1,440 Conversion costs (120 X $4.50) 540 $1,980
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EXERCISE 21-6 (a) Materials Conversion Costs Units transferred out Work in process, July 31 3,000 X 100% 3,000 X 60% Total equivalent units 9,000 3,000 12,000 9,000 1,800 10,800 (b) Materials: $45,000 ÷ 12,000 = $3.75 Conversion costs: ($16,200 + $18,900) ÷ 10,800 = $3.25 Costs accounted for Transferred out (9,000 X $7.00) Work in process, July 31 Materials (3,000 X $3.75) Conversion costs (1,800 X $3.25) Total costs $11,250 5,850 $63,000 17,100 $80,100
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Process Costing - Week 7 solution guide Chapters 21 &...

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