2010-08-24_190659_penisonifull-1

2010-08-24_190659_penisonifull-1 - All necessary...

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All necessary calculations are on the attached excel sheet QUESTION 6: Sala Corporation uses the weighted-average method in its process costing system. The Fitting Department is the second department in its production process. The data below summarize the department's operations in March. Units Percent Complete with Respect to Conversion Beginning work in process inventory 9,500 30% Transferred in from the prior department during March 45,000 Ending work in process inventory 3,700 80% The Fitting Department's cost per equivalent unit for conversion cost for March was $2.44. How much conversion cost was assigned to the units transferred out of the Fitting Department during March? -2-2 $131,174. 4 $109,800 $123,952 $132,980 Units in Beginning Inventory 9,500 Add: Units Started into Production 45,000 Less: Units in Ending Inventory 3,700 Units Transferred Out 50,800 Cost per Equivalent Unit × $2.44 Conversion Cost Assigned to Units Transferred Out $123,952 QUESTION 7: Sumter Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month: Work in process, beginning: Units in process 5,900 Percent complete with respect to materials 70% Percent complete with respect to conversion 30% Costs in the beginning inventory: Materials cost $76,400 Conversion cost $2,900 Units started during the month ? Units completed and transferred out during the month 70,200 Costs added to production during the month: Materials cost $293,968
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Conversion cost $198,524 Work in process, ending: Units in process 8,700 Percent complete with respect to materials 80% Percent complete with respect to conversion 35% How many units were started into production during the month? -2-2 55,600 units 67,400 units 84,800 units 73,000 units QUESTION 9: Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. (The Mexican currency is the peso and is denoted by $.) The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system. A hastily prepared report for the Mixing Department for April appears below: Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 80% complete) 6,000 Started into production 34,000 Total units to be accounted for 40,000 Units accounted for as follows: Transferred to next department 24,000 Work in process, April 30 (materials 75% complete; conversion 50% complete) 16,000 Total units accounted for 40,000 Cost Reconciliation Cost to be accounted for: Work in process, April 1 $16,100 Cost added during the month
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2010-08-24_190659_penisonifull-1 - All necessary...

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