Expert Solutions

1. A plant that uses process costing has 8,000 units in beginning work in process, 15,000 more started, and 5,000 units in the ending work in process. Using this information, answer the following questions on a separate sheet of paper. Label each answer carefully and show all of your work.

a. How many units are there to account for?

b. How many units are transferred using the average cost method? c. How many units are transferred using the first-in, first-out method? d. How many units were both started and completed during the period?

2. The Spangle Company uses the process cost system and average costing. The following prediction data are for the month of July: Prepare a cost of production summary for the month. Production Costs Work in process, beginning of month Materials $2,500 Labor 1,200 Factory overhead 1,100 $4,800 Costs incurred during the month Materials $13,500 Labor 9,200 Factory overhead 8,500 31,200 $36,000 Production Report Units In process, beginning of month 500 Finished and transferred during month 3,800 Work in process, end of month 400 Stage of completion 50%

3. The following data is for a production company: Beginning inventory 1,000 units, three-fourths completed a. Using the average cost method, compute the equivalent production.

b. Using the first-in, first-out method, compute the equivalent production.

c. During the month, Department B received 10,000 units from Department A with a unit cost of $10; 2,000 of these units were lost during production in Department B. Determine the adjusted cost of these units.

d. During the month, Department 2 received 8,000 from Department 1 with a unit cost of $15. Department 2 added materials that increased the number of units by 50%. Determine the adjusted cost of these units.