Chapter06 Solutions-Hansen6e

# Work in processmolding 170500 since direct labor and

• Notes
• SuperHumanRockBat9605
• 36
• 100% (1) 1 out of 1 people found this document helpful

This preview shows 24 out of 28 pages.

Work in Process—Molding ................ 170,500 *Since direct labor and overhead are not given separately, a control account for conversion costs is used. More firms are using a combined control ac- count like this because labor has become a small percentage of total manu- facturing costs (for these firms). 121

Subscribe to view the full document.

6–22 Continued 3. Assembly Department a. Physical flow schedule: Units, beginning work in process ......................... 8,000 Units started in February (transferred in) ............. 30,000 Total units to account for ...................................... 38,000 Units completed and transferred out: Started and completed ..................................... 27,000 From beginning work in process ..................... 8,000 Units, ending work in process .............................. 3,000 Total units accounted for ...................................... 38,000 b. Equivalent units calculation: Direct Conversion Transferred Materials Costs In Units started and completed ......... 27,000 27,000 27,000 Equivalent units in beginning work in process ........................ 8,000 4,000 0 Equivalent units in ending work in process ........................ 0 1,500 3,000 Total equivalent units .................... 35,000 32,500 30,000 c. Unit cost calculation: Costs charged to the department: Direct Conversion Transferred Materials Costs In Total Costs added .................. 39,550 136,500 170,500 346,550 Unit cost = Unit direct materials cost + Unit conversion costs + Unit transferred-in cost = \$39,550/35,000 + \$136,500/32,500 + \$170,500/30,000 = \$1.13 + \$4.20 + \$5.6833* = \$11.0133 *Rounded. 122
6–22 Concluded d. and e. Total costs accounted for: Cost of units started and completed (27,000 × \$11.0133) \$ 297,359* Cost of units in beginning work in process: Prior-period costs ........................................... 62,000 Current cost to finish units: Direct materials (8,000 × \$1.13) ................. 9,040 Conversion costs (4,000 × \$4.20) ............. 16,800 Total costs of goods transferred out ................. \$385,199 Costs in ending work in process: Conversion (1,500 × \$4.20) ............................. \$ 6,300 Transferred in (3,000 × \$5.6833) ..................... 17,050 * Total costs in ending work in process .............. 23,350 Total costs accounted for .................................. \$ 408,549 *Rounded. Costs to account for: Beginning work in process ................................. \$ 62,000 Costs incurred ..................................................... 346,550 Total costs to account for .................................. \$ 408,550 * *Difference due to rounding. Journal entries: Work in Process—Assembly ............. 39,550 Materials Inventory .......................... 39,550 Work in Process—Assembly ............. 136,500 Conversion Costs—Control ........... 136,500* Finished Goods ................................... 385,199 Work in Process—Assembly ......... 385,199 *Since direct labor and overhead are not given separately, a control ac- count for conversion costs is used. More firms are using a combined control account like this because direct labor has become a small per- centage of total manufacturing costs (for these firms). 123

Subscribe to view the full document.

6–23 1. Healthway Mixing Department Production Report for July 20XX Unit Information Units to account for: Units, beginning work in process .............. 5 Units started ................................................ 126 Total units to account for ........................... 131 Units accounted for: Equivalent Units Physical Direct Conversion Flow Materials Costs Units completed .................................. 125 125 125 Units, ending work in process ............ 6 6 3 Total units accounted for ................... 131 131 128 Cost Information Costs to account for: Direct Conversion Materials Costs Total Costs in beginning work in process. . \$ 120 \$ 384 \$ 504 Costs added by department ............... 3,144 12,288 15,432 Total costs to account for .................. \$ 3,264 \$ 12,672 \$ 15,936 Cost per equivalent unit ........................... \$ 24.916* \$ 99.00 \$ 123.916 Costs accounted for: Transferred Ending Work Out in Process Total Goods transferred out (125 × \$123.916) .............................. \$15,490* \$ 15,490* Ending work in process: Direct materials (6 × \$24.916) ........ \$149* 149* Conversion costs (3 × \$99.00) ....... 297 297 Total costs accounted for ................... \$ 15,490 \$ 446 \$ 15,936 *Rounded.
You've reached the end of this preview.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern