Chapter06 Solutions-Hansen6e

0 units ending work in process 12000 100 12000

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60,000 × 70% ................................... 42,000 Units, ending work in process: 12,000 × 100% ................................. 12,000 12,000 × 25% ................................... 3,000 Equivalent units of output .................. 75,000 108,000 103
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6–7 1. Ending work in process: Direct materials (6,000 × $3.00) .......................................... $18,000 Conversion costs (4,500 × $5.00) ....................................... 22,500 Total ending work in process ............................................. $ 40,500 Cost of goods transferred out: Units started and completed (22,000 × $8.00) ................... $176,000 Units, beginning work in process: Prior-period costs .......................................................... 55,000 Current costs to finish (4,000 × $5.00) ......................... 20,000 Total cost of goods transferred out ........................................ $ 251,000 2. Physical flow schedule: Units to account for: Units, beginning work in process ...................................... 10,000 Units started ........................................................................ 28,000 Total units to account for ................................................... 38,000 Units accounted for: Units completed: Started and completed .................................................. 22,000 Units, beginning work in process ................................. 10,000 Units, ending work in process ........................................... 6,000 Total units accounted for ................................................... 38,000 6–8 A B C D Completed .......................... 18,000 a 22,000 c 40,000 d 50,000 f Units in ending WIP ........... 800 b 0 2,000 e 1,000 g Equivalent units ................. 18,800 22,000 42,000 51,000 a (3,000 + 19,000 – 4,000). e (8,000 × 0.25). b (4,000 × 0.20). f (35,000 + 25,000 – 10,000). c (2,000 + 20,000 – 0). g (10,000 × 0.10). d (48,000 – 8,000). 104
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6–9 A B C D Started and completed a ........................... 15,000 20,000 40,000 25,000 Beginning work in process b ................... 2,100 500 0 10,000 Ending work in process c ......................... 800 0 2,000 1,000 Equivalent units ...................................... 17,900 20,500 42,000 36,000 a A = 19,000 – 4,000; B = 20,000 – 0; C = 48,000 – 8,000; D = 35,000 – 10,000 An underlying assumption is that units in BWIP are finished first before starting new units. b A = 3,000 × 0.7; B = 2,000 × 0.25; C = 0; D = 25,000 × 0.4 c A = 4,000 × 0.2; B = 0; C = 8,000 × 0.25; D = 10,000 × 0.1 6–10 1. Unit cost = Unit direct materials cost + Unit conversion costs = ($30,000 + $25,000)/11,000 + ($5,000 + $65,000)/8,000 = $5.00 + $8.75 = $13.75 per equivalent unit 2. Cost of ending work in process: Direct materials ($5.00 × 6,000) ..................... $30,000 Conversion costs ($8.75 × 3,000) ................. 26,250 Total ............................................................... $ 56,250 Cost of goods transferred out = $13.75 × 5,000 = $68,750 6–11 1. Physical flow schedule: Units to account for: Units, beginning work in process ................. 10,000 Units started ................................................... 60,000 Total units to account for .............................. 70,000 Units accounted for: Started and completed .................................. 40,000 Units, beginning work in process ................. 10,000 Units, ending work in process ...................... 20,000 Total units accounted for .............................. 70,000 105
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6–11 Concluded 2. Unit cost = Unit direct material costs + Unit conversion costs = $240,000/60,000 + $320,000/50,000 = $4.00 + $6.40 = $10.40 per equivalent unit 3. Cost of ending work in process: Direct materials (20,000 × $4.00) ............................. $ 80,000 Conversion costs (5,000 × $6.40) ............................ 32,000 Total cost .................................................................. $ 112,000 Cost of goods transferred out: Units started and completed (40,000 × $10.40) ...... $416,000 Units in beginning work in process: Prior-period costs .............................................. 100,000 Current cost to finish units (5,000 × $6.40) ...... 32,000 Total cost .................................................................. $ 548,000 4. Work in Process—Sewing .......................... 548,000 Work in Process—Cutting .................... 548,000 6–12 1. Equivalent units calculation: Direct Conversion Transferred Materials Costs In Units completed .................. 16,000 16,000 16,000 Ending WIP: 8,000 × 50% ..................... 4,000 4,000 8,000 × 100% ................... 8,000 Total equivalent units ......... 20,000 20,000 24,000 2. Costs charged to the department: Direct Conversion Transferred Materials Costs In Total Costs in BWIP ...................... $ 5,000 $ 6,000 $ 8,000 $ 19,000 Costs added by department 32,000 50,000 40,000 122,000 Total costs ........................... $ 37,000 $56,000 $48,000 $141,000 Unit cost = Unit direct materials cost + Unit conversion costs + Unit transferred-in cost = $37,000/20,000 + $56,000/20,000 + $48,000/24,000 = $1.85 + $2.80 + $2.00 = $6.65 106
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6–13 Equivalent units calculation: Direct Conversion Transferred Materials Costs In Units started and completed 12,000 12,000 12,000 Units to complete in BWIP: 4,000 × 60% 2,400 2,400 Units in EWIP: 8,000 × 100% 8,000 8,000 × 50% 4,000 4,000 Total equivalent units 18,400 18,400 20,000 Unit cost = Unit direct materials cost + Unit conversion costs + Unit transferred-in cost = $32,000/18,400 + $50,000/18,400 + $40,000/20,000 = $1.74* + $2.72* + $2.00 = $6.46 *Rounded.
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