ACCT3203 Revision Process Costing - Questions

3 marks 2 section b question 1 xyz inc accumulates

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[3 marks] 2
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Section (B) QUESTION 1 XYZ Inc., accumulates costs for its single product using weighted-average process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. Below is a partially completed production cost report for the month of June 2016. Product Cost Report For the Month of June 2016 (Weighted-Average Method) Equivalent Units Physical Units Percentage of Completion with Respect to Conversion Direct Material Conversion Cost Work in process, June 1 40 000 80% Units started during June 80 000 Total units to account for 120 000 Units completed and Transferred out during June 100 000 Work in process, June 30 20 000 30% Total units accounted for 120 000 Total Direct Material Conversion Cost Work in process, June 1 $ 347 280 $ 42 000 $ 305 280 Costs incurred during June 880 400 96 000 784 400 Total costs to account for $1 227 680 $138 000 $1 089 680 Cost per equivalent unit $11.43 $1.15 $10.28 .../Question 1 Continued next page. 3
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QUESTION 1 - Continued REQUIRED: 1. Prepare a schedule of equivalent units for XYZ, Inc. (6 marks) 2. Show how the costs per equivalent unit were determined in the production cost report above. (4 marks) 3. Compute the cost of goods completed and transferred out during the month of June. (2 marks) 4. Compute the cost remaining in the work-in-process inventory on June 30. (3 marks) (TOTAL MARKS 15) 4
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