Process Costing

# Process Costing - Week 7 solution guide Chapters 21 22...

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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 22...

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