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Unformatted text preview: Ch 17 Solutions Horngren 13 th Edition 17-35 (25 min.) Weighted-average method. Solution Exhibit 17-35A shows equivalent units of work done to date of: Direct materials 625 equivalent units Conversion costs 525 equivalent units Note that direct materials are added when the Assembly Department process is 10% complete. Both the beginning and ending work in process are more than 10% complete and hence are 100% complete with respect to direct materials. Solution Exhibit 17-35B summarizes the total Assembly Department costs for April 2009, calculates cost per equivalent unit of work done to date for direct materials and conversion costs, and assigns these costs to units completed (and transferred out), and to units in ending work in process using the weighted-average method. SOLUTION EXHIBIT 17-35A Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing, Assembly Department of Porter Handcraft for April 2009. (Step 1) (Step 2) Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Work in process, beginning (given) 75 Started during current period (given) 550 To account for 625 Completed and transferred out during current period 500 500 500 Work in process, ending * (given) 125 125 × 100%; 125 × 20% 125 25 Accounted for 625 Work done to date 625 525 * Degree of completion in this department: direct materials, 100%; conversion costs, 20%. SOLUTION EXHIBIT 17-35B Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed and to Units in Ending Work in Process; Weighted-Average Method of Process Costing, Assembly Department of Porter, April 2009. Total Production Costs Direct Materials Conversion Costs (Step 3 ) Work in process, beginning (given) $ 1,910 $ 1,775 $ 135 Costs added in current period (given) 28,490 17,6 00 10,890 Total costs to account for $ 30,400 $ 19,375 $ 11,025 ( Step 4...
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- Spring '11
- Conversion of units, Equivalent Unit