Managerial accounting
Managerial Accounting
Instructions:
Complete the following activities in good form. Use excel or word only. Provide all supporting calculations to show how you arrived at your numbers
Part C: Process Costing using Weighted Average
Timberline Associates uses the weighted-average method in its process costing system. The following
data are for the first processing department for a recent month:
|
Work in process, beginning: |
|
|
Units in process ........................................................ |
2,400 |
|
Percent complete with respect to materials .............. |
75% |
|
Percent complete with respect to conversion ........... |
50% |
|
Costs in the beginning inventory: |
|
|
Materials cost ........................................................... |
$8,400 |
|
Conversion cost ........................................................ |
$7,200 |
|
Units started into production during the month ........... |
20,800 |
|
Units completed and transferred out ........................... |
22,200 |
|
Costs added to production during the month: |
|
|
Materials cost ........................................................... |
$97,400 |
|
Conversion cost ........................................................ |
$129,600 |
|
Work in process, ending: |
|
|
Units in process ........................................................ |
1,000 |
|
Percent complete with respect to materials .............. |
80% |
|
Percent complete with respect to conversion ........... |
60% |
Required:
a. Determine the equivalent units of production.
b. Determine the costs per equivalent unit.
c. Determine the cost of ending work in process inventory.
d. Determine the cost of the units transferred to the next department.
Part D: Process Costing using First-in-First Out (FIFO)
Crone Corporation uses the FIFO method in its processing costing system. The following data concern the company's Assembly Department for the month of October.
|
Cost in beginning work in process inventory ........ |
$1,920 |
|
|
Units started and completed this month ................ |
3,130 |
|
|
|
Materials |
Conversion |
|
Cost per equivalent unit ......................................... |
$9.50 |
$20.40 |
|
Equivalent units required to complete the units in |
|
|
|
beginning work in process inventory ................. |
360 |
140 |
|
Equivalent units in ending work in process |
|
|
|
inventory ............................................................ |
330 |
264 |
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out of the department during October using the FIFO method.