BSAD 223 Introductory Managerial Accounting

BSAD 223 Introductory Managerial Accounting

1.       Miller Company manufactures a product for which materials are added at the beginning of the manufacturing process. A review of the company's inventory and cost records for the most recently completed year revealed the following information:

The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.

Required:

i.                     Compute the equivalent units of production and the cost per equivalent units for materials and for conversion costs.

ii.                   Determine the cost transferred to finished goods.

iii.                  Determine the amount of cost that should be assigned to the ending work in process inventory.

1.       Weisinger Corporation has provided the following data for the month of January:

Inventories                         Beginning                            Ending

Raw materials                    $28,000                                 $29,000

 Work In process              $16,000                                 $14,000

Finished goods                  $42,000                                $54,000

 Additional Information

Raw material purchases                                                                $56,000

Direct labor costs                                                             $87,000

Manufacturing overhead cost incurred                  $51,000

 Indirect materials included in manufacturing overhead costs incurred                    $3,000

Manufacturing overhead cost applied to work in process                              $55,000

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.