# Ch5_Q&A_5-14 - Chapter 5 Solution 5-14 Cost of...

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An, Jun Yi B03-Lec 01 e-mail: Zhu, Ming Jie B03-Lec 01 e-mail: [email protected] Chapter 5 Question 5-14 Question Ogata Mills makes breakfast foods. In the mixing department, all material is added at the beginning of the process. Labor and overhead are incurred evenly throughout the process. Unit and cost information for a recent period follows: Beginning inventory (50% complete) 3000 bags Unit started 110000bags Ending inventory (70% complete) 2000 bags Direct material Conversion Beginning work in process inventory \$12000 \$18000 Current period costs 480000 270000 Required: Prepare a cost of production report for Ogata Mills assuming that the company employs a weighted average processing costing system. Source: Managerial accounting third canadian edition, prepared by brenda M. Mallouk and Gary Spraakman York University, Schulich

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An, Jun Yi B03-Lec 01 e-mail: Zhu, Ming Jie B03-Lec 01 e-mail: [email protected]
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Unformatted text preview: Chapter 5 Solution 5-14 Cost of production report Production DATA Production Equivalent units of Whole units DM Conversion BWIP (100% ; 50%) 3000 3000 1500 Units started 110000_ To account for _113000 BWIP completed 3000 0 1500 S&C 108000 108000 108000 Units completed 111000 EWIP (100% ; 70%) 2000 2000 1400 Account for 113,000 113,000 112,400 Cost DATA Total DM Conversion BWIP Cost \$30000 \$12000 \$18000 Current cost 750000 480000 270000 Total Cost to account for \$780000 492000 288000 Divided by EUP ÷ 113000 ÷ 112400 Cost per EUP \$6.916 \$4.354 \$2.562 Cost Assignment Transferred out (111000 x 6.916) \$767,676 Ending inventory: Direct material (2000 x 4.354) \$8,708 Conversion (14000 x 2.562) 3,587 12,295 Total cost accounted for \$779,970 Source: Managerial accounting third canadian edition, prepared by brenda M. Mallouk and Gary Spraakman York University, Schulich...
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Ch5_Q&A_5-14 - Chapter 5 Solution 5-14 Cost of...

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