Managerial Accounts

158

I ProHem/t-26 Strai ghtforuard Weighted-

Average Process Costin g,

Stepby-Step Approach

([0 3,4,5]

2. Total equivalent units,

conversion: 226,044

r PruHemr+-z7 Missing Data; Production

Beprt Weighted-Average

(L0 4,5,6)

Cost remaining in ending

work-in-process inventory,

direct material: $1 23 750

Total cost of July 3l work in

process: $202,950

Ghapter 4 Process Costing and Hybrid Product-Costing Systems

Piscalalvay Plastics Company manulactures a highly specialized plastic that is used extensivcly in the automobile industry. The tbllorving data have been cor:rpiled for the montli of .lune . Conversion activity occurs unifomrly throughout the production process.

Work in process, June 1-50,000 units

Direct material: I 009'o compiele cost 0f ...,,,.... $l 2o,oo(]

34,400Convers onr 40% cornplele, cost of

Balance in work rn process, June 1 9M100 200,000

1 90 000

Units slarted during June

Units conrpleted during June afd trans{erred 0u1 t0 fiflshed-g00ds inventory

Work in process, June 30:

Direct material; 100% complete

Conversion: 6070 complete

Costs incurred during June:

Conversion costs:

Applied manufacturing overhead 262,350

Required: Prepare schedules to accomplish each ofthe lbllorving process-costing steps forthe month ofJune. Llse the rveighted-average method ofprocess costing.

1. Analysis ofphysical florv ofunits.

2. Calculation olequivalentunits.

3. Compr-rtation of unit oosts.

1. Analysis oftotal costs.

The Ibllowing data pertain to the Vesuvius Tile Company for July.

Worh in process. Jgly I 1in urrits) 2n.001

Units c0mpleted and trans{erred out during July ............,........ ?

Wotk ir orocess. Juiy 3l iio -' ts) ... 1 5.000

Total equivalent unrrs: conve's on

Work in process, July 1: conversion ?

Costs incurred during July: direct matenal ?

Costs incurred during Julyr conversion ....,. 659,40C

244.20A

1 .031 ,250

1,275.450

Work in process, July 1 r tolal cost

Cost of goods completed and transfered out during Ju1y,,,,..,............,,.. ?

Cost remaining in ending,,vork-in-process inventory: direct material ?

Cost remaining in ending work-in-pr0cess inventory: conversion 79,200

Add itional Information :

:1. Direct material is added at the beginning ofthe production process: and conversion activity occurs uniformly tfuoughout the process.

b. 'I'he company uses weiglrted-average process costing.

Trtal cos.c i"currpd dur ng July .... ......

Total t,osts to acc0d,rl for .......... . ..... .

Cost per equivale[t unit: direct material