Equivalent units in ending work in process from

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*Equivalent units completed and transferred out from Solution Exhibit 17-33A, Step 2.Equivalent units in ending work in process from Solution Exhibit 17-33A, Step 2.17-29
17-34(30 min.)Transferred-in costs, FIFO method (continuation of 17-33).1.As explained in Problem 17-33, requirement 1, transferred-in costs are 100% completeand direct materials are 0% complete in both beginning and ending work-in-process inventory.2.The equivalent units of work done in October 2012 in the Testing Department fortransferred-in costs, direct materials, and conversion costs are calculated in Solution Exhibit 17-34A.3.Solution Exhibit 17-34B summarizes total Testing Department costs for October 2012,calculates the cost per equivalent unit of work done in October 2012 in the Testing Departmentfor transferred-in costs, direct materials, and conversion costs, and assigns these costs to unitscompleted and transferred out and to units in ending work in process using the FIFO method.4.Journal entries:a.Work in Process––Testing Department 7,735,250Work in Process––Assembly Department7,735,250Cost of goods completed and transferred outduring October from the Assembly Dept. tothe Testing Dept.b.Finished Goods23,463,766Work in Process––Testing Department23,463,766Cost of goods completed and transferred outduring October from the Testing Departmentto Finished Goods inventory.17-31
SOLUTIONEXHIBIT 17-34ASteps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; FIFO Method of Process Costing,Testing Department of Larsen Company for October 2012.(Step 1)(Step 2)Equivalent UnitsFlow of ProductionPhysicalUnitsTransferred-in CostsDirectMaterialsConversionCostsWork in process, beginning (given)Transferred-in during current period (given)To account for7,50022,50030,000(work done before current period)Completed and transferred out during current period:From beginning work in process§7,500(100% 100%); 7,500(100% 0%); 7,500(100% 70%)7,50007,5002,250Started and completed18,800 100%; 18,800100%; 18,800100%18,80018,80018,80018,800Work in process, ending* (given)3,700100%; 3,7000%; 3,70060%3,700_____3,70002,220Accounted for30,000Equivalent units of work done in current period22,50026,30023,270§ Degree of completion in this department: Transferred-in costs, 100%; direct materials, 0%; conversion costs, 70%.26,300 physical units completed and transferred out minus 7,500 physical units completed and transferred out frombeginning work-in-process inventory.*Degree of completion in this department: transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%. 17-32
SOLUTIONEXHIBIT 17-34BSteps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs toUnits Completed and to Units in Ending Work in Process;FIFO Method of Process Costing,Testing Department of Larsen Company for October 2012.TotalProductionCostsTransferred-inCostsDirectMaterialsConversionCosts(Step 3)Work in process, beginning (given)$ 3,717,335$ 2,881,875$ 0$ 835,460Costs added in current period (given)21,395,8507,735,2509,704,7003,955,900Total costs to account for$25,113,185$10,617,125$9,704,700$4,791,360(Step 4)Costs added in current period$ 7,735,250$9,704,700$3,955,900Divide by equivalent units of work done in current period (Solution Exhibit 17-34A)22,50026,30023,270Cost per equiv. unit of work done in current period$ 343.79$ 369.00$ 170.00(Step 5) Assignment of costs:

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