Accounting excel project

QUESTION 18-1

Azure Textiles Company-weighted average costing method

Details;

Direct materials are added at the beginning of the period

Conversion costs are added evenly throughout the process

Spoilage costs-detection upon completion process

Spoiled units are disposed at a zero net disposal value.

July 1 is the beginning of the period-Degree of completion: Direct materials=100%

Conversion costs=50%-

July 31st is the end of the period-Degree of completion: Direct materials=100%

Conversion costs=30%

Physical units Direct materials Conversion costs

Beginning WIP 1000 $1423 $1110

Goods units completed and

Transferred in July 9000

Normal spoilage 100

Abnormal spoilage 50

Ending WIP 2000

Total costs added during the period 12180 27750

Flow of production Physical units Direct materials Conversion costs

Beginning WIP 1000

Started during July 10,150

To account for 11150

Units completed and

transferred out (Good) 9000 9000*100% 9000

Normal spoilage 100 100 100

Abnormal spoilage 50 50 50

Ending WIP 2000 2000*100% 2000*30%

Accounted for 11150

Equivalent units of work done to date 11150 9750

Total production costs Direct materials Conversion costs

Beginning WIP 2533 1423 1110

Costs added during the

Period 39930 12180 27750 Total costs to account for 42463 13603 28860

Costs incurred to date 13603 28860

Equivalent units 11150 9750

Cost per equivalent unit 1.22 2.96

Assignment of costs

Units completed and

Transferred

Costs before adding normal spoilage 37620 10980 26640

Normal spoilage 418 122 296

Total 38038 11102 26,936

Abnormal spoilage 209 61 148

Ending WIP 4216 2440 1776

Total 42,463 13603 28860

QUESTION 18-2

Azure Textiles Company-FIFO costing method

Details;

Direct materials are added at the beginning of the period

Conversion costs are added evenly throughout the process

Spoilage costs-detection upon completion process

Spoiled units are disposed at a zero net disposal value.

July 1 is the beginning of the period-Degree of completion: Direct materials=100%

Conversion costs=50%-

July 31st is the end of the period-Degree of completion: Direct materials=100%

Conversion costs=30%

Physical units Direct materials Conversion costs

Beginning WIP 1000 $1423 $1110

Goods units completed and

Transferred in July 9000

Normal spoilage 100

Abnormal spoilage 50

Ending WIP 2000

Total costs added during the period 12180 27750

Flow of production Physical units Direct materials Conversion costs

Beginning WIP 1000

Started during July 10,150

To account for 11150

Units completed and 1000 500

transferred out (Good) 8000 8000 8000

Normal spoilage 100 100 100

Abnormal spoilage 50 50 50

Ending WIP 2000 2000*100% 2000*30%

Accounted for 10150

Equivalent units of work done to date 10150 9250

Total production costs Direct materials Conversion costs

Beginning WIP 2533 1423 1110

Costs added during the

Period 39930 12180 27750 Total costs to account for 42463 13603 28860

Costs incurred to date 12180 27750

Equivalent units 10150 9250

Cost per equivalent unit 1.20 3.00

Assignment of costs

Units completed and

Transferred

WIP 2533 1423 1110

Costs added 1500 1500

4033

Started and completed

before normal spoilage 33600 9600 24000

Normal spoilage 420 120 300

Total 38053

Abnormal spoilage 210 60 150

Ending WIP 4200 2400 1800

Total costs accounted for 42463 13603 28860

QUESTION 18-21

Mac lean Manufacturing company-November 2017

Weighted average costing method

Direct materials-added at the beginning of the period

Conversion costs-added evenly throughout

Spoilage-at the end of the completion process and disposed at net zero value

At the beginning (Nov 1), the degree of completion-Direct materials-100%

Conversion costs-45%

At the end of the period (Nov 30th)-Direct materials-100%

Conversion costs-35%

Therefore, the computation of equivalent units for direct materials and conversion costs will be:

Physical units Direct materials Conversion costs

Beginning WIP 1350 $966 $711

Goods units completed and

Transferred in July 8800

Normal spoilage 80

Abnormal spoilage 50

Ending WIP 1700

Total costs added during the period $10302 $30055

Flow of production Physical units Direct materials Conversion costs

Beginning WIP 1350

Started during July 9280

To account for 10630

Units completed and

transferred out (Good) 8800 8800*100% 8800

Normal spoilage 80 80 80

Abnormal spoilage 50 50 50

Ending WIP 1700 1700*100% 2000*35%=700

Accounted for 10630

Equivalent units of work done to date 10630 9630

QUESTION 18-22

Total production costs Direct materials Conversion costs

Beginning WIP 1677 966 711

Costs added during the 40357 10302 30055

Period

Total costs to account for 42034 11268 30766

Costs incurred to date 11268 30766

Equivalent units 10630 9630

Cost per equivalent unit 1.06 3.19

Assignment of costs

Units completed and

Transferred

Costs before adding normal spoilage 37620 9328 28072

Normal spoilage 340 84.8 255.2

Total 37960 9412.8 28327.5

Abnormal spoilage 212.5 53 159.5

Ending WIP 2295 1700 595

Total 40,467.5 11,165.8 29082

QUESTION 18-23

Mac lean Manufacturing company-November 2017

Weighted average costing method

Direct materials-added at the beginning of the period

Conversion costs-added evenly throughout

Spoilage-at the end of the completion process and disposed at net zero value

At the beginning (Nov 1), the degree of completion-Direct materials-100%

Conversion costs-45%

At the end of the period (Nov 30th)-Direct materials-100%

Conversion costs-35%

Therefore, equivalent units for direct materials and conversion costs under the FIFO method will be;

Mac lean Company

Physical units Direct materials Conversion costs

Beginning WIP 1350

Started during the period 9280

To account for 10630

Good units completed and transferred out

From the beginning WIP 1350 0.45*1350=607.5

Started and completed 7450 7450 7450

Normal spoilage 80 80 80

Abnormal spoilage 50 50 50

Ending WIP 1700 1700 1700*0.35=595

Accounted for 10630

Equivalent units 10630 9280 8782.5

QUESTION 18-24

Total production Direct materials Conversion costs

Cost

Beginning WIP 1677 966 711

Costs incurred in

the current period 40357 10302 30055

Total costs accounted for 42034 11268 30766

Costs added in the current

Period 10302 30055

Cost per equivalent unit 1.11 3.42

Assignment of costs will be

Good units completed and transferred out

Beginning WIP 1677 966 711

Costs added to the beginning WIP

In the current period 2077.65 2077.65

Totals from beginning before normal 3754.65

Spoilage

Started and completed before normal spoilage34018.5 8269.5 25479

Normal spoilage 362.4 88.8 273.6

Total 38135.55

Abnormal spoilage 226.5 55.5 171

Ending WIP 3921.9 1887 2034.9

Total 42283.95 11266.8 30747.15