Managerial Accounts

Chapter 4 Process Costing and Hybrid Product-Cosling Systems

c. 'l hc July' I $ork in process rvas 30 perccnt complete as to cott'vu-rsiot't'

d. 'l'he.lu11' 3 I rvork in process was 40 percent conlpletc as to conYersion'

Required: Con.rpute thc rnissing amounts. and preparc the linn's.luly productign rcport.

'ltiangle Fastener Cotporation accumulates costs for its single product using process costing. Direct

material is added at the beginning ofthe production process. and conversion activity occurs uniformly

throughout the process. A partially completed production report tbr the month of May follows.

Muc0m no[ort For lfte tonfi ol ilay

Percentage of Equivalent units

Completion

Physical with Respect Direct

Units t0 Conversion Material ConverCon

35,000 35 000

20,000 1 6,000

159

Problem,l-28 Partial Prcduction Report;

iournal Entries, Weighted-

Average Method

Problem tS-29

Strai gntf orward V'/ei ghted-

Average Process Costing;

Step-by-Step Approach

7.

Work in process, May 1 ...,.. .. ..,., 25,000 404/o

Units started during lVay ,.,.................,. '. 30,000

Total units t0 account for ...........,..,.... 55!00

Units completed and transferred out during May .,.,..... ,. '.... 35'000

Work in process, lVay 31 ................ 20,000 B0o/o

Total units accounted for 55,000

.-Diroct # thateriat fiverslon

Costs incurred during MaY

Total costs to account {0r ...........,........

Bequired:

l. Contpletc cach o1'the lollorving proccss-costing steps using the r'veighted-avorage rncthod:

a. Calculationoleqttivalent units.

b. Conrputation ol'unit costs.

c. Anall'sis oltotal oosts.

Z. prepare a joumal entry to record the transfcr of thc cost of goods completcd and transf'en'ed out

during May.

Moravia compan,v processes and packages cream cheese. 1-he lollorving auru t ruJI .- the nronth ofApril. Conversion activity ocours uniformll throughout the production process.

$1 43 000

1 65 000

s3o8!00

$ 474,700

2,009,000

$a1ry00

$ 617 200

?,1/ 4.AAA

s2,791 ,700

Work in process, April 1-10,000 units:

Direct material. 1 00% complete, cost o{ $ 22,000

4 500Conversion 20% complete, cost ot

Balance in work in process, April 1 ,, ...,.......,,. ., $ 26,500

Unils completed during April and translerred out to finished'goods inventory 80,000

Work in process, April 30:

Direct material: '100% comPlete

Conversion: 3314% complete

Costs incurred during APril:

Conversron costs:

Applied manrfactuttng overhead

$ 52,800

r 05,600

q!!r00