C equivalent units in ending work in process from

This preview shows page 45 - 48 out of 48 pages.

Equivalent units started and completed from Solution Exhibit 17-40C, Step 2.c Equivalent units in ending work in process from Solution Exhibit 17-40C, Step 2Ahmed Nawfal17-45
Ahmed 17-4617.41(30-35 min.) Weighted-average and standard-costing method.1.Solution Exhibit 17-41A computes the equivalent units of work done in November 2010 by Penelope’s Pearls Company for direct materials and conversion costs.2. and 3. Solution Exhibit 17-41B summarizes total costs of the Penelope’s PearlsCompany for November 30, 2012 and, using the standard cost per equivalent unit for directmaterials and conversion costs, assigns these costs to units completed and transferred out and tounits in ending work in process. The exhibit also summarizes the cost variances for directmaterials and conversion costs for November 2012.SOLUTION EXHIBIT 17-41ASteps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; Standard Costing Method of Process Costing,Penelope’s Pearls Company for the month ended November 30, 2012.(Step 1)(Step 2)EquivalentUnits Flow of ProductionPhysicalUnitsDirectMaterialsConversion CostsWork in process, beginning (given) Started during current period (given)To account for24,000124,400148,400(work done before current period)Completed and transferred out during current period:From beginning work in process§24,000 (100% 100%); 24,000 (100% – 70%)24,00007,200Started and completed99,000 100%, 99,000 100%99,00099,00099,000Work in process, ending* (given) 25,400 100%; 25,400 50%25,40025,40012,700Accounted for148,400Equivalent units of work done in current period124,400118,900§Degree of completion in this department: direct materials, 100%; conversion costs, 70%.123,000 physical units completed and transferred out minus 24,000 physical units completed and transferred outfrom beginning work-in-process inventory.*Degree of completion in this department: direct materials, 100%; conversion costs, 50%.
SOLUTION EXHIBIT 17-41BSteps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost perEquivalent Unit, and Assign Total Costs to Units Completed and to Units inEnding Work in Process;Standard-Costing Method of Process Costing,Penelope’s Pearls Company for the month ended November 30, 2012.TotalProductionCostsDirectMaterialsConversion Costs(Step 3) Work in process, beginning (given)$ 248,400$ 72,000+$ 176,400Costs added in current period at standard costs1,621,650(124,400 3.00) + (118,900 $10.50)Total costs to account for$1,870,050$445,200+$1,424,850(Step 4) Standard cost per equivalent unit (given)$3.00$10.50(Step 5) Assignment of costs at standard costs:Completed and transferred out (123,000 units):Work in process, beginning (24,000 units)Costs added to beg. work in process in current periodTotal from beginning inventory$ 248,40075,600324,000$72,000+$176,400(0* $3.00)+ (7,200* $10.50)Started and completed (99,000 units)Total costs of units transferred out1,336,5001,660,500(99,000$3.00) + (99,000$10.50)Work in process, ending (25,400 units)209,550(25,400# $3.00) + (12,700# $10.50)Total costs accounted for$1,870,050$445,200+$1,424,850Summary of variances for current performance:Costs added in current period at standard costs (see Step 3 above)Actual costs incurred (given)Variance$373,200329,000$ 44,200F$1,248,4501,217,000$31,450F*Equivalent units to complete beginning work in process from Solution Exhibit 17-41A, Step 2.Equivalent units started and completed from Solution Exhibit 17-41A, Step 2.#

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture