Managerial accounting questions P4-26 and P4-27
accounting teacherManagerial accounting questions
Problem 4-26 Straightforward Weighted Average Process Costing, Step-by-Step Approach
Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.
Work in process, June 1—50,000 units: 50,000
Direct material: 100% complete cost of 120,000
Conversion: 40% complete, cost of 34,400
Balance in work in process, June 1 154,400
Units started during June 200,000
Units completed during June and transferred out to finished-goods inventory 190,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 60% complete
Costs incurred during June:
Direct material 492,500
Conversion costs:
Direct labor. 87,450
Applied manufacturing overhead 262,350
Total conversion costs 349,800
Required:
Prepare schedules to accomplish each of the following process-costing steps for the month
1. Analysis of physical flow of units.
2. Calculation of equivalent units.
3. Computation of unit costs.
4. Analysis o f t otal c osts.
Problem 4-27 Missing Data; Production Report; Weighted-Average
The following data pertain to the Vesuvius Tile Company for July.
Work in process, July 1 (in units) | 20000 |
Units started during July | ? |
Total units to account for | 65000 |
Units completed and transferred out during July | ? |
Work in process, July 31 (in units) | 15000 |
Total equivalent units: direct material | 65000 |
Total equivalent units: conversion | ? |
Work in process, July 1: direct material | 164400 |
Work in process, July 1: conversion | ? |
Costs incurred during July: direct material | ? |
Costs incurred during July: conversion | 659400 |
Work in process, July 1: total cost | 244200 |
Total costs incurred during July | 1031250 |
Total costs to account for | 1275450 |
Cost per equivalent unit: direct material | 8.25 |
Cost per equivalent unit: conversion | ? |
Total cost per equivalent unit | 21.45 |
Cost of goods completed and transfered out during July | ? |
Cost remaining in ending work-in-process inventory: direct material | ? |
Cost remaining in ending work-in-process inventory: conversion | 79200 |
Total cost of July 31 work in process | 202950 |
Additional Information:
a. Direct material is added at the beginning of the production process, and conversion activity occurs
uniformly throughout the process.
b. The company uses weighted-average process costing.
c. The July 1 work in process was 30 percent complete as to conversion.
d. The July 31 work in process was 40 percent complete as to conversion.
10 years ago
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