Tarea 4 Cost Eng

Tarea 4 Cost Eng - Prob 14-A3 Weighted Average Process Costing Method The Magnatto Company manufature electric drills Material is introduced at at

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Weighted Average Process Costing Method The Magnatto Company manufature electric drills. Material is introduced at at the beginning of the process in the assembly department. Conversion cost are applied uniformly througout the process. As the process is completed, goods are immediately tranferred to the finishing department. Data for the assembly department for the month of July 20X7 follow Work in process, June 30: $175,500 (consisting of $138,000, materials and $ 37,500 conversion costs); 100% completed for direct material, but onley 25% completed for conversion costs Units started during July 10,000 Units completed during July 80,000 Work in process, July 31: 100% completed 70,000 for direct material, but only 50% completed for conversion costs 20,000 Direct materials added during July 852,000 Conversion costs added during July 634,500 1. Compute the total cost of goods transferred out of the assembly department during July. 2. Compute the total costs of the ending work in process. Prepare a production cost-report or a similar orderly tabulation of your work. Assume weighted-average product costing. (For journal entries, see problem 14-38) step 2 Flow of Product Equivalent units Direct Material Conversion Wip June 30 10,000 (25%) 80,000 To account for 90,000 70,000 70,000 70,000 WIP July 31 20,000 20,000 10,000 Units Accounted for 90,000 90,000 80,000
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This note was uploaded on 10/01/2011 for the course ITESM SEM2 taught by Professor Comptonw during the Spring '11 term at ITESM.

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Tarea 4 Cost Eng - Prob 14-A3 Weighted Average Process Costing Method The Magnatto Company manufature electric drills Material is introduced at at

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