Chapter06 Solutions-Hansen6e

109 problems 616 1 physical flow schedule units to

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PROBLEMS 6–16 1. Physical flow schedule: Units to account for: Units, beginning work in process ...................... 27,000 Units started ........................................................ 63,000 * Total units to account for ................................... 90,000 * 90,000 – 27,000 = 63,000 Units accounted for: Units completed and transferred out ................. 81,000 Units, ending work in process ........................... 9,000 Total units accounted for ................................... 90,000 2. Equivalent Units Direct Materials Conversion Costs Transferred out 81,000 81,000 Ending WIP 9,000 2,250 * Total 90,000 83,250 * (9,000 × 0.25) 3. Unit direct materials cost = ($810,000 + $1,710,000)/90,000 = $28 Unit conversion costs = ($248,400 + $3,914,100*)/83,250 = $50 Total unit cost = $28 + $50 = $78 * Overhead applied: Inspections: $100 × 4,000 = $ 400,000 Maintenance: $500 × 1,600 = 800,000 Receiving: $200 × 2,000 = 400,000 $1,600,000 Direct labor cost ................. 2,314,100 Conversion cost ................ $3,914,100 4. Cost of goods transferred out: 81,000 × $78 = $6,318,000 Ending WIP: (9,000 × $28) + (2,250 × $50) = $364,500 110
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6–16 Concluded Reconciliation: Costs to account for: Costs accounted for: BWIP ($810,000 + $248,400) ....... $1,058,400 Transferred out $ 6,318,000 August ($1,710,000 + $3,914,100) 5,624,100 EWIP ................. 364,500 Total ............................................. $ 6,682,500 Total .................. $ 6,682,500 5. Work in Process—Drilling .............. 6,318,000 Work in Process—Molding ....... 6,318,000 6–17 1. Same as Problem 6–16. 2. Direct Materials Conversion Costs Started and completed .................. 54,000 54,000 Beginning WIP to complete a .......... 0 21,600 Ending WIP ..................................... 9,000 2,250 b Equivalent units ............................. 63,000 77,850 a (27,000 × 0% to complete) = 0 (27,000 × 80% to complete) = 21,600 b (9,000 × 0.25) 3. Unit direct materials ($1,710,000/63,000) ...................... $27.143* Unit conversion costs ($3,914,100 ** /77,850) ................ 50 .277 * Total unit cost ................................................................ $77 .420 * Rounded. ** Overhead applied ( same as Problem 6-16 ): Inspections: $100 × 4,000 = $ 400,000 Maintenance: $500 × 1,600 = 800,000 Receiving: $200 × 2,000 = 400,000 $1,600,000 Direct labor cost ................. 2,314,100 Conversion cost $3,914,100 4. Cost of goods transferred out: From beginning WIP ($810,000 + $248,400) ...................... $1,058,400 To complete beginning WIP (21,600 × $50.277) ............. 1,085,983* Started and completed (54,000 × $77.420) ........................ 4,180,680 Total ..................................................................................... $ 6,325,063 Cost of ending WIP = ($27.143 × 9,000) + ($50.277 × 2,250) 111
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= $357,410* * Rounded. 112
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6–17 Concluded Reconciliation: Costs to account for: Costs accounted for: Beginning WIP ...... $1,058,400 Transferred out ........ $6,325,063 August ................... 5,624,100 Ending WIP .............. 357,410 $ 6,682,500 $ 6,682,473 * * Difference due to rounding. 6–18 Peterson Company Assembly Department Production Report for April 2010 Unit Information Units to account for: Units, beginning work in process 10,000 Units started 15,000 Units to account for 25,000 Units accounted for: Physical Flow Equivalent Units * Units completed 20,000 20,000 Units, ending work in process 5,000 4,000 Total units accounted for 25,000 24,000 * Since materials are added uniformly, the equivalent units are the same for both materials and conversion cost. Cost Information Costs to account for: Manufacturing Costs Costs, beginning work in process $24,000 Costs added by department 52,000 Total costs to account for $76,000 Cost per equivalent unit ($76,000/24,000) $ 3.167 * * Rounded Costs accounted for: Units completed (20,000 × $ 3.167 ) $63, 340 Units, ending work in process (4,000 × $ 3.167 ) 12, 668 Total costs accounted for $76, 008 * * Difference due to rounding. 113
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6–19 Peterson Company Assembly Department Production Report for April 2010 Unit Information Units to account for: Units, beginning work in process 10,000 Units started 15,000 Total units to account for 25,000 Units accounted for: Physical Flow Equivalent Units Started and completed 10,000 10,000 From beginning work in process 10,000 6,000* Units, ending work in process 5,000 4,000 Total units accounted for 25,000 20,000 * (10,000 × 0.60) Cost Information Costs to account for: Manufacturing Costs Costs, beginning work in process $24,000 Costs added by department 52,000 Total costs to account for $76,000 Cost per equivalent unit ($52,000/20,000) $2.60 Costs accounted for: Transferred out:
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