The fifo ending inventory is lower than the weighted

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SOLUTION EXHIBIT 17-32A Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; FIFO Method of Process Costing, Assembly Department of Larsen Company for October 2012. (Step 1) (Step 2) Equivalent Units Flow of Production Physical Units Direct Materials Conversion Costs Work in process, beginning (given) Started during current period (given) To account for 5,000 20,000 25,000 (work done before current period) Completed and transferred out during current period: From beginning work in process§5,000 (100% 100%); 5,000 (100% 60%) 5,000 0 2,000 Started and completed 17,500 100%, 17,500 100% 17,00017,500 17,500 Work in process, ending* (given) 2,500 100%; 2,500 70% 2,500 2,500 1,750 Accounted for 25,000 ______ Equivalent units of work done in current period 20,000 21,250 §Degree of completion in this department: direct materials, 100%; conversion costs, 60%. 22,500 physical units completed and transferred out minus 5,000 physical units completed and transferred out from beginning work-in-process inventory. *Degree of completion in this department: direct materials, 100%; conversion costs, 70%.
17-25SOLUTION EXHIBIT 17-32B Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed and to Units in Ending Work in Process; FIFO Method of Process Costing, Assembly Department of Larsen Company for October 2012. Total Production Costs Direct Materials Conversion Costs (Step 3) Work in process, beginning (given) $1,652,750 $1,250,000 $ 402,750 Costs added in current period (given) 6,837,500 4,500,000 2,337,500 Total costs to account for $8,490,250 $5,750,000 $2,740,250 (Step 4) Costs added in current period $4,500,000 $2,337,500 Divide by equivalent units of work done in current period (Solution Exhibit 17-32A) 20,000 21,250 Cost per equivalent unit of work done in current period $ 225 $ 110 (Step 5) Assignment of costs: Completed and transferred out (22,500 units): Work in process, beginning (5,000 units) Costs added to beg. work in process in current period $1,652,750 220,000 $1,250,000 + $ 402,750 (0* $225) + (2,000*$110) Total from beginning inventory Started and completed (17,500 units) Total costs of units completed & transferred out Work in process, ending (2,500 units) Total costs accounted for 1,872,750 5,862,500 7,735,250 755,000 $8,490,250 (17,500$225) + (17,500$110) (2,500#$225) + (1,750# $110) $5,750,000 + $2,740,250 *Equivalent units used to complete beginning work in process from Solution Exhibit 17-32A, Step 2.

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