Step 1 step 2 equivalent units flow of production

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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 3 / Exercise 55
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
(Step 1)(Step 2)Equivalent UnitsFlow of ProductionPhysicalUnitsTransferred-inCostsDirectMaterialsConversionCostsWork in process, beginning (given)17,500(work done before current period)Transferred-in during current period (given)56,000To account for73,500Completed and transferred out during current period:From beginning work in processa17,500[17,500 (100% – 100%); 17,500 (100% – 0%); 17,500 (100% – 60%)]017,5007,000Started and completed34,500b(34,500 100%; 34,500 100%; 34,500 100%)34,50034,50034,500Work in process, endingc(given)21,500(21,500 100%; 21,500 x0%; 21,500 20%)____21,50004,300Accounted for73,500____ ____ ____ Equivalent units of work done in current period56,00052,00045,800aDegree of completion in this department: Transferred-in costs, 100%; direct materials, 0%; conversion costs, 60%.b 56,000 physical units completed and transferred out minus 17,500 physical units completed and transferred out from beginning work-in-process inventory.17-4
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Applied Calculus for the Managerial, Life, and Social Sciences
The document you are viewing contains questions related to this textbook.
Chapter 3 / Exercise 55
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
cDegree of completion in this department: transferred-in costs, 100%; direct materials, 0%; conversion costs, 20%. 17-4
SOLUTION EXHIBIT 17-44BSummarize the Total Costs to Account For, Compute the Cost per Equivalent Unit, and Assign Costs to the Units Completed and Unitsin Ending Work-in-Process Inventory;FIFO Method of Process Costing,Stitching Department of Spelling Sports for March 2017.TotalProductionCostsTransferred-in CostsDirectMaterialsConversion Costs(Step 3)Work in process, beginning (given)$ 63,020$ 45,360$ 0$17,660Costs added in current period (given)271,950154,56028,08089,310Total costs to account for$334,970$199,920$28,080$106,970(Step 4)Costs added in current period$154,560 $28,080 $89,310 Divide by equivalent units of work done in current period (Sol. Exhibit 17-44A)÷ 56,000÷ 52,000÷ 45,800Cost per equivalent unit of work done in current period$ 2.76 $ 0.54 $ 1.95 (Step 5)Assignment of costs:Completed and transferred out (56,000 units)Work in process, beginning (17,500 units)$ 63,020$45,360 + $0 + $17,660 Costs added to beginning work in process in current period23,100(0a× $2.76) + (17,500a× $0.54) + (7,000a× $1.95) Total from beginning inventory86,120Started and completed (34,500 units)181,125(34,500b× $2.76) + (34,500b× $0.54) + (34,500b× $1.95) Total costs of units completed and transferred out267,245Work in process, ending (21,500 units):67,725(21,500c× $2.76)+ (0c× $0.54)+ (4,300c× $1.95)Total costs accounted for$334,970$199,920+ $28,080+ $106,970aEquivalent units used to complete beginning work in process from Solution Exhibit 17-44A, step 2.bEquivalent units started and completed from Solution Exhibit 17-44A, step 2.cEquivalent units in ending work in process from Solution Exhibit 17-44A, step 2. 17-4
17-45Standard costing, journal entries.The Warner Company manufactures reproductions ofexpensive sunglasses. Warner uses the standard-costing method of process costing to account forthe production of the sunglasses. All materials are added at the beginning of production. Thecosts and output of sunglasses for May 2017 are as follows:PhysicalUnits% of Completionfor ConversionCostsDirectMaterialsConversionCostsWork in process, beginning22,00060%$ 48,400$ 33,000Started during May95,000Completed and transferred out87,000Work in process, ending30,00075%Standard cost per unit$ 2.20$ 2.50Costs added during May$207,500$238,000Required:1.Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

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