Ch06HWSolutionsEs11thru15

Ch06HWSolutionsEs11thru15 - CHAPTER 6 PRODUCT AND SERVICE...

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CHAPTER 6 PRODUCT AND SERVICE COSTING: A PROCESS SYSTEMS APPROACH EXERCISES 6–11 1. Physical flow schedule: Units to account for: Units, beginning work in process. ................ 10,000 Units started. ................................................... 60,000 Total units to account for. ............................. 70,000 Units accounted for: Started and completed. .................................. 40,000 Units, beginning work in process. ................ 10,000 Units, ending work in process. ..................... 20,000 Total units accounted for. .............................. 70,000 2. Unit cost = Unit direct material costs + Unit conversion costs = $240,000/60,000 + $320,000/50,000 = $4.00 + $6.40 = $10.40 per equivalent unit 3. Cost of ending work in process: Direct materials (20,000 × $4.00). ............................. $ 80,000 Conversion costs (5,000 × $6.40). ............................ 32,000 Total cost. ................................................................... $ 112,000 Cost of goods transferred out: Units started and completed (40,000 × $10.40). ..... $416,000 Units in beginning work in process: Prior-period costs. .............................................. 100,000 Current cost to finish units (5,000 × $6.40). ..... 32,000 Total cost. ................................................................... $ 548,000 4. Work in Process—Sewing. ......................... 548,000 Work in Process—Cutting. .................... 548,000 1
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6–12 1. Equivalent units calculation: Direct Conversion
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Ch06HWSolutionsEs11thru15 - CHAPTER 6 PRODUCT AND SERVICE...

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