Chapter 6, End Of Chapter, REVIEW PROBLEMS, Exercise 01
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Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Prepare a physical flow schedule.

Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Prepare a schedule of equivalent units.

Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Compute the cost per equivalent unit.

Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Compute the cost of goods transferred out and the cost of ending work in process.

Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Prepare a cost reconciliation.

Weighted Average Method, Single Department; Equivalent Units, FIFO Method

 

Payson Company produces a product that passes through two departments: Mixing and Cooking. Both departments use the weighted average method. In the Mixing Department, all direct materials are added at the beginning of the process. All other manufacturing inputs are added

uniformly. Payson uses the weighted average method. The following information pertains to the

Mixing Department for February:

 

a. Beginning work in process (BWIP), February 1: 100,000 pounds, 100 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. The costs assigned to this work are as follows:

Direct materials$20,000
Direct labor10,000
Overhead30,000

b. Ending work in process (EWIP), February 28: 50,000 pounds, 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.

 

c. Units completed and transferred out: 370,000 pounds. The following costs were added during the month:

Direct materials$211,000
Direct labor100,000
Overhead270,000

Required:

 

Repeat Requirements 2-4 using the FIFO method.

Explanation

A physical flow schedule identifies and accounts for the units that must be accounted for, despite of their degree of completion. It's the first of five steps in the process costing procedure.

Answer

Unit cost information   
Units to account for: Units accounted for: 
Beginning goods in process100,000Completed & transferred out370,000
Units started this period320,000Ending goods in process50,000
Total units to account for420,000Total units accounted for420,000
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