Required a why can process costing be used to compute

This preview shows page 123 - 126 out of 133 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 18 / Exercise EX 18–23
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Required:a.Why can process costing be used to compute the cost of the welders?b.Calculate the unit cost of a welder..a.The welders are a homogeneous, mass-produced product. Each product produced receives the same dose of manufacturing costs.b.Unit cost = $110($55,000/500)181. Suburbia Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost datafor the company for February 2014 are as follows:Production data:In process, beginning of month (20% converted)1,000 unitsStarted during February5,000 unitsCompleted and transferred to finished goods4,500 unitsIn process, end of month (60% converted)1,500 unitsManufacturing costs:Work in process, beginning$14,730Materials$45,000Direct labor cost$102,960Factory overhead cost$51,480Required:Prepare a cost of production report for February 2014. Use FIFO process costing.Summary of units in process:Beginning1,000 Units started5,000In process6,000 Completed(4,500)Ending1,500Equivalent units in process:MaterialsConversionUnits completed4,5004,500Add: Eq. units in end. inv.1,500900Equivalent units in process6,0005,400Less: Eq. units in beg. inv.1,000200Equivalent units manufactured5,0005,200Total costs to be accounted for:MaterialsConversionTotalBeginning WIP$ 14,730Current costs$45,000$154,440199,440
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Financial and Managerial Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 18 / Exercise EX 18–23
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
Total costs in process$214,170Costs per equivalent unit$9.00$29.70$38.70Accounting for total costs:Transferred out:Beginning WIP:Beginning balance$ 14,730Add: Conversion (800 ´ $29.70)23,760$ 38,490Started and finished (3,500 ´ $38.70)135,450Total transferred out$173,940Ending WIP:Materials (1,500 ´ $9.00)$ 13,500Conversion (900 ´ $29.70)26,730Ending WIP40,230Total cost accounted for$214,170182. Xavier Corporation manufactures a plastic toy product in a two-stage production process. Plastic material is brought into the Forming Department where it is shaped. Shaped products are then moved to the Finishing Department where metal is added. Thefollowing data is given for the Forming Department for November:Units for November:Work in process, beginning inventory November 1300 unitsDirect materials (100% complete)Conversion (40% complete)Units started in November:2,200 unitsWork in process, ending inventory November 30500 unitsDirect materials (100% complete)Conversion (25%)Costs for November:Work in process, beginning inventoryDirect materials$7,100Conversion$4,525Costs added during November:Direct materials$70,400Conversion$40,100Round to two decimal places.Required:a.How many units were transferred to Finishing?b.How many units were started and completed during November?c.How many equivalent units of conversion does it take to complete the beginning inventory in the current period?d.What is the FIFO cost assigned to the ending inventory?e.What is the FIFO cost assigned to the units transferred out?f.Show the T-account for the forming process.Forming
(Weighted Average)a.2,500 - 500 = 2,000b.Units started and completed = Units transferred out - Beginning inventoryTransferred out = 300 + 2,200 - 500 = 2,000Started and completed = 2,000 - 300 = 1,700c.300 - 120 = 180 (60%)d.(500 ´ $32*) + (125 ´ $20*) = $18,500* calculation of cost per unitEquivalent units in process:MaterialsConversionUnits completed2,0002,000Add: Eq. units in end. inv.500125Equivalent units in process

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture