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Chap004 (dragged) 32 - Direct material ¸ ¸ ¸ ¸ ¸ ¹ ...

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McGraw-Hill/Irwin ¤ 2005 The McGraw-Hill Companies, Inc. Managerial Accounting, 6/e 4-33 PROBLEM 4-36 (CONTINUED) Direct Material Conversion Total Work in process, January 1 ............................... $232,000 $110,600 $ 342,600 Costs incurred during January ......................... 400,000 820,000 1,220,000 Total costs to account for .................................. $632,000 $930,600 $1,562,600 Equivalent units .................................................. 80,000 66,000 Costs per equivalent unit ................................... $7.90 $14.10 $22.00 *$7.90 = $632,000 ÷ 80,000 $14.10 = $930,600 ÷ 66,000 **$22.00 = $7.90 + $14.10 Cost of goods completed and transferred out during January: ¸ ¸ ¹ · ¨ ¨ © § u ¸ ¸ ¹ · ¨ ¨ © § unit equivalent per cost total out d transferre units of number ........................... 60,000 u $22.00 $1,320,000 Cost remaining in January 31 work-in-process inventory:
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Unformatted text preview: Direct material: ¸ ¸ ¸ ¸ ¸ ¹ · ¨ ¨ ¨ ¨ ¨ © § u ¸ ¸ ¸ ¸ ¸ ¹ · ¨ ¨ ¨ ¨ ¨ © § material direct of unit equivalent per cost material direct of units equivalent of number .............................. 20,000 u $7.90 $ 158,000 Conversion: ¸ ¸ ¸ ¸ ¸ ¹ · ¨ ¨ ¨ ¨ ¨ © § u ¸ ¸ ¸ ¸ ¸ ¹ · ¨ ¨ ¨ ¨ ¨ © § conversion of unit equivalent per cost conversion of units equivalent of number ......................................... 6,000 u $14.10 84,600 Total cost of January 31 work in process. ............................................... $ 2 4 2 , 6 Check: Cost of goods completed and transferred out. .. $1,320,000 Cost of January 31 work-in-process inventory. . 242,600 Total costs accounted for . ................................... $1,562,600...
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