5e sol06-17 - Materials Conversion Total Unit Cost: Costs...

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Cost Management Hansen and Mowen Prob 6-17 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns E and K. 1) Physical Flow Schedule Units Units, beginning work in process 27,000 Units started 63,000 Units to account for 90,000 Units completed and transferred out 81,000 Units, ending work in process 9,000 Total units accounted for 90,000 Enter the appropriate amounts in the shaded cells in columns E, G, I, and K. 2) Equivalent Units - FIFO method Materials Conversion Units started and completed 54,000 54,000 Units, beginning work in process to complete Materials 27,000 x 0% Conversion 27,000 x 80% 21,600 Units, ending work in process Materials 9,000 x 100% 9,000 Conversion 9,000 x 25% 2,250 Equivalent units of output 63,000 77,850 3) Costs to account for and cost per unit
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Unformatted text preview: Materials Conversion Total Unit Cost: Costs added $1,710,000 $3,914,100 Divided by: Equivalent units of output 63,000 77,850 Cost per unit $27.143 $50.277 $77.420 4) Cost accounted for: Costs transferred out: Beginning WIP $810,000 + $248,400 $1,058,400 To complete beginning WIP 21,600 x $50.277 1,085,983 Started and completed 54,000 x $77.420 4,180,680 Total 6,325,063 Costs in ending work in process: Material 9,000 x $27.143 $244,287 Conversion 2,250 x $50.277 113,123 = $357,410 Reconciliation: Costs to account for: Costs accounted for: Beginning WIP $1,058,400 Transferred out $6,325,063 August 5,624,100 Ending WIP 357,410 Total $6,682,500 Total $6,682,473...
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This note was uploaded on 11/05/2009 for the course BUS ACC202 taught by Professor Achillies during the Spring '09 term at NC Wesleyan.

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