Informationforthemixingdepartmentis chapter 21 27

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: nstruction divided by Number of full-time equivalent students $9,000,000 / 1,500 = $6,000 Chapter 21-25 Equivalent Units – Weighted Average Method Equivalent Units – Weighted Average Method Considers the degree of completion (weighting) of units completed and transferred out and units in ending work in process Most widely used method Beginning work in process not part of computation of equivalent units Illustration 21-8 Chapter 21-26 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example The Kellogg Company uses 3 departments (Mixing, Baking, and Freezing/Packaging) to produce waffles. Information for the Mixing Department is: Chapter 21-27 Illustration 21-9 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example - Continued Mixing Department Raw Materials information: All ingredients (materials) are added at the beginning of the mixing process All units, regardless of degree of completion, are 100% complete as to materials Mixing Department Conversion Cost information: Conversion costs refers to the sum of labor costs and overhead costs. The units are 60% complete with respect to conversion costs. Chapter 21-28 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Example - Continued Computation of Mixing Department’s Equivalent Units Illustration 21-10 Chapter 21-29 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Refined Equivalent Units of Production Formula Illustration 21-11 Chapter 21-30 Refinements on Weighted-Average Method Refinements on Weighted-Average Method Review Question The Mixing Department’s output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversions costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production are: a. b. 23,000 c. 24,000 Chapter 21-31 22,600 d. 25,000...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern