Chap004 (dragged) 28

# Chap004 (dragged) 28 - _ _ _ _ _ _ _ _ _ _ _ _ _ Work in...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. Managerial Accounting, 6/e 4-29 PROBLEM 4-34 (30 MINUTES) 1. The ending work-in-process inventory consisted of 400 units (200 + 800 – 600). 2. The cost of goods completed during June totaled \$57,000 (600 units x \$95): Physical Units Percentage Of Completion With Respect to Conversion Equivalent Units __________________ Direct Material Conversion _ _ _ _ _ _ _ _ __________ ______ __________ Work in process, June 1………………. 200 25% Units started during June……………. . 800 Total units to account for……………. .. 1,000 Units completed and transferred during June…………………………. . 600 100% 600 600 Work in process, June 30……………. .. 400 7 5 % 4 0 0 3 0 0 Total units accounted for……………… 1,000 Total equivalent units…………………. . 1,000 900 D i r e c t Material Conversion Total _ _ _ _ _ _ _ _ _ _
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Unformatted text preview: _ _ _ _ _ _ _ _ _ _ _ _ _ Work in process, June 1 \$12,000 \$ 6,000 \$18,000 Costs incurred during June. 43,000 3 , 7 3 , Total costs to account for. \$55,000 \$ 3 6 , \$ 9 1 , Equivalent units. .. 1,000 900 Cost per equivalent unit. \$55 a \$40 b \$95 c a \$55,000 1,000 = \$55 b \$36,000 900 = \$40 c \$55 + \$40 = \$95 F i n i s h e d-G o o d s I n v e n t o r y 57,000 W o r k-i n-P r o c e s s I n v e n t o r y . 57,000 3. The cost of the June 30 work-in-process inventory is \$34,000: Direct material (400 x \$55). .. \$22,000 Conversion cost (300 x \$40). . 12,000 Total \$34,000...
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## This note was uploaded on 03/28/2012 for the course ACC260 AAAJ0OKG00 taught by Professor Katrenataylor during the Spring '10 term at University of Phoenix.

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