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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 Transferred Materials Costs In Units completed ................... 16,000 16,000 16,000 Ending WIP: 8,000 × 50% ..................... 4,000 4,000 8,000 × 100% ................... 8,000 Total equivalent units ......... 20,000 20,000 24,000 2. Costs charged to the department: Direct Conversion Transferred Materials Costs In Total Costs in BWIP ...................... \$ 5,000 \$ 6,000 \$ 8,000 \$ 19,000 Costs added by department 32,000 50,000 40,000 122,000 Total costs ............................ \$ 37,000 \$56,000 \$48,000 \$141,000 Unit cost
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