Problems of Cost Accounting
Problem 1:
Kali Manufacturing Inc. began the year with the following.
Units | ||
Beginning work-in-process | 20,000 | 20% complete |
Transferred to finished goods | 60,000 | |
Ending inventory | 10,000 | 70% complete |
Materials added at the beginning of the process
Required
Calculate the equivalent units for
- material costs under the weighted average process cost method;
- conversion costs under the weighted average process cost method;
- material costs under the FIFO process cost method; and
- conversion costs under the FIFO process cost method.
Problem 2:
Glass Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for the current month are as follows.
Production Data | units |
In process, beginning of month (20% converted) | 2000 |
Started during current month | 8000 |
Completed and transferred to finished goods | 5500 |
In process, end of month (60% converted) | 4500 |
Manufacturing Costs | |
Work in process, beginning | |
-Materials | $15,000 |
-Conversion | $6,450 |
Production Costs Added | |
-Materials | $54,000 |
-Direct labor cost | $105,000 |
-Factory overhead cost | $36,150 |
Required
Prepare a cost of production report for current month. Use Weighted-Ave process costing.
11 years ago
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