17-1CHAPTER 17 PROCESS COSTING17-38Transferred-in costs, weighted average.1. Solution Exhibit 17-38A computes the equivalent units of work done to date in the Binding Department for transferred-in costs, direct materials, and conversion costs. Solution Exhibit 17-38B summarizes total Binding Department costs for April 2012, calculates the cost per equivalent unit of work done to date in the Binding Department for transferred-in costs, 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. 2. Journal entries: a. Work in Process–– Binding Department 129,600 Work in Process––Printing Department 129,600 Cost of goods completed and transferred out during April from the Printing Department to the Binding Department b. Finished Goods 220,590 Work in Process–– Binding Department 220,590 Cost of goods completed and transferred out during April from the Binding Department to Finished Goods inventory SOLUTION EXHIBIT 17-38ASteps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; Weighted-Average Method of Process Costing, Binding Department of Bookworm, Inc. for April 2012. (Step 1) (Step 2) Equivalent Units Flow of Production Physical Units Transferred-in Costs Direct Materials Conversion Costs Work in process, beginning (given) 1,050 Transferred-in during current period (given) 2,400 To account for 3,450 Completed and transferred out during current period: 2,700 2,700 2,700 2,700 Work in process, endinga(given) 750 (750 ×100%; 750 ×0%; 750 ×70%) 750 0 525 Accounted for 3,450 Equivalent units of work done to date 3,450 2,700 3,225 aDegree of completion in this department: transferred-in costs, 100%; direct materials, 0%; conversion costs, 70%.
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