Ch 4 - C250 - Cost and Managerial Accounting

In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000.

Cost of ending WIP inventory $ 21,000.00 Costs of units transferred out $ 99,000.00 total cost accounted for $ 120,000.00

Beg WIP Inventory 900.00 Cost of beginning WIP Inventory $ 11,200.00 Materials Cost $ 11,200.00 @ 60% Conversion Cost $ 9,800.00 @ 40% Units started into Production during month 7,100.00 Units completed during month and transferred out 6,000.00 Costs added during the Period: Materials Cost $ 115,800.00 Conversion Cost $ 145,800.00 Ending WIP Inventory 2,000.00 Materials Complete 55% Conversion Complete 35% The cost per equivalent unit for materials for the month in the first processing department is:

$17.89 Units transferred to the next department 6,000 Ending WIP Inventory 2,000.00 x 55% = 1,100 Equivalent Units of Production 7,100 Cost of beginning WIP Inventory $ 11,200.00 + Costs added during the period $ 115,800.00 = Total Costs $ 127,000.00 / Equivalent Units of production 7,100 = Cost per Equivalent Unit $ 17.89

In September, one of the processing departments at Wielgus Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $10,000. During the month, $296,000 of costs were added to production. In the department's cost reconciliation report for September, the total cost to be accounted for would be:

Cost of beginning WIP inventory $ 27,000 Costs added to production during the period $ 296,000 Total Cost to be accounted for $ 323,000

In September, one of the processing departments at Wielgus Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $10,000. During the month, $296,000 of costs were added to production. In the department's cost reconciliation report for September, the cost of units transferred out of the department would be:

Cost of beginning WIP inventory $ 27,000 Costs added to production during the period $ 296,000 Total Cost to be accounted for $ 323,000 Cost of ending WIP inventory $ 10,000 Costs of units transferred out ? Total Cost to be accounted for $ 10,000 $ 323,000 - $ 10,000 = $ 313,000

In May, one of the processing departments at Stitzel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be:

$ 187,000 Costs accounted for as follows Cost of ending WIP inventory $ 27,000 Costs of units transferred out $ 160,000 total cost accounted for $ 187,000

Beg WIP Inventory 800 Materials Cost $ 7,800 @ 65% Labor/Conversion Cost $ 7,600 @35% + Units started into Production during month 9,900 Units completed transferred to the next department 8,900 Costs added during the Period: Materials Cost $ 128,600 Labor/Conversion Cost $ 220,800 Ending WIP Inventory 1,800 Materials @ 70% Labor/Conversion @ 60% The total cost transferred from the first processing department to the next processing department during the month is?

Units transferred to next department - 8,900 - 8,900 + Ending WIP Inventory - 1,260 - 1,080 = Equivalent Units of Production - 10,160 - 9,980 Cost of beginning WIP Inventory - $ 7,800 - $ 7,600 + Costs added during the period - $ 128,600 - $ 220,800 = Total Costs - $ 136,400 - $ 228,400 / Equivalent Units of production - 10,160 - 9,980 = Cost per Equivalent Unit - $ 13.425 - $ 22.886 Units transferred to the next department - 8,900 - 8,900 x Cost per equivalent unit - $ 13.425 - $ 22.886 Cost of units transferred = $ 119,484.25 + $ 203,683.37 = $ 323,167.62

When the weighted-average method of process costing is used, a department's equivalent units are computed by:

adding the units transferred out to the equivalent units in ending inventory.

Walborn Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 11,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $22,400. A total of 45,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.20 for materials and $3.40 for conversion costs. The total cost of the units completed and transferred out of the department was:

$207,000 Description - Materials - Conversion Units transferred - 45,000 - 45,000 Cost per equivalent unit - $ 1.20 - $ 3.40 Cost of units transferred = $ 54,000.00 + $ 153,000 = $207,000.00

Valley Manufacturing Corporation's beginning work in process inventory consisted of 10,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning inventory was $30,000. During the month, 50,000 units were transferred out. The equivalent unit cost was computed to be $2.00 for materials and $3.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:

$285,000 Description - Materials - Conversion Units transferred - 50,000 - 50,000 Cost per equivalent unit - $ 2.00 - $ 3.70 Cost of units transferred = $ 100,000 + $ 185,000 = $285,000

Larner Corporation uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Beginning WIP Inventory - 24,000 units - 40% complete Transferred in 86,000 units Ending WIP Inventory - 19,000 - 20% complete

$6.892 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 24,000 + 86,000 - 19,000 = 91,000 Ending WIP conversion = 19,000 x 20% - 3,800 EUP = 94,800 Total Cost = 68,064 + 585,324 = 653,388 / EUP 94,800 = $6.892

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 in conversion costs were incurred in the department during the month.What would be the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.)

$7.547 Units transferred to the next department = Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process Units transferred to the next department = 20,000 + 65,000 - 19,000 = 66,000 Ending WIP conversion = 19,000 x 10% - 1,900 EUP = 67,900 Total Cost = 512,450 / EUP 67,900 = $7.547

The Assembly Department started the month with 35,000 units in its beginning work in process inventory. An additional 472,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 34,000 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?

473,000 Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in - Units in ending work in process inventory Units completed and transferred out = 35,000 + 472,000 - 34,000 = 473,000

Jawson Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: Beginning WIP Inventory - 6,300 units - 10% complete Transferred in 65,600 units Ending WIP Inventory - 4,600 - 70% complete

70,520 Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 6,300 + 65,600 - 4,600 = 67,300

Health Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Health's two departments for the month of January: Description - Mixing - Bottling Beginning WIP - 10,000 - 3,000 Completed and transferred - 77,000 - ? Ending WIP - 4,000 - 8,000

72,000 Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in - Units in ending work in process inventory Units completed and transferred out = 3,000 + 77,000 - 8,000 = 72,000

Fabian Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department. There were 12,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Assembly Department for the month?

89,400 Unts transferred 87,000 + Conversion 12,000 x 20% = 2,400 = 89,400 EUP

Beg WIP Inventory 300 Materials Cost $ 7,400 @ 85% Labor/Conversion Cost $ 4,900 @ 55% Units started into Production during month 9,100 Units completed and transferred to the next department 8,700 Costs added during the Period: Materials Cost $ 240,300 Labor/Conversion Cost $ 242,400 Ending Inventory: Materials @ 85% Labor/Conversion @ 20% What is the ending WIP inventory?

Beg WIP Inventory 300 + Units started into Production during month 9,100 - transferred to the next department 8,700 = Ending WIP Inventory 700

Beg WIP Inventory 400.00 Materials Cost $ 7,500.00 @ 75% Labor/Conversion Cost $ 4,000.00 @ 45% Units started into Production during month 5,400.00 transferred to the next department 4,700.00 Costs added during the Period: Materials Cost $ 112,900.00 Labor/Conversion Cost $ 93,900.00 Ending Inventory Materials Complete 85% Labor/Conversion 30% What are the equivalent units for conversion costs for the month in the first processing department?

Units transferred to the next department 4,700 + Ending WIP Inventory 1,100.00 x 30% = 330 = Equivalent Units of Production 5,030

Beg WIP Inventory 700 Materials Cost $ 16,400 @ 85% Labor/Conversion Cost $ 9,200 @ 60% + Units started into Production during month 7,900 Units completed and transferred to the next department 6,900 Ending Inventory: Materials @ 70% Labor/Conversion @ 35% What are the equivalent units for conversion costs for the month?

Units transferred to the next department 6,900 + Ending WIP Inventory 595 = Equivalent Units of Production 7,495

Beg WIP Inventory 200 Materials Cost $ 2,800 Labor/Conversion Cost $ 2,600 Materials 60% Labor/Conversion 35% Units started into production during the period 7,900 Units completed and transferred out 7,400 Costs added during the Period: Materials Cost $ 166,000 Labor/Conversion Cost $ 261,000 Ending WIP Inventory 700 Materials 85% Labor/Conversion 45% What are the equivalent units for materials for the month in the first processing department?

Units transferred to the next department 7,400 Ending WIP Inventory 700 x 85% = 595 Equivalent Units of Production 7,995

Beg WIP Inventory 800 Materials Cost $ 7,800 @ 65% Labor/Conversion Cost $ 7,600 @ 35% Units started into Production during month 9,900 transferred to the next department 8,900 Costs added during the Period: Materials Cost $ 128,600 Labor/Conversion Cost $ 220,800 Ending Inventory: Materials @ 70% Labor/Conversion @ 60% The total cost transferred from the first processing department to the next processing department during the month is?

Units transferred to the next department 8,900 - 8,900 + Ending WIP Inventory 1,260 - 1,080 = Equivalent Units of Production 10,160 - 9,980 Cost of beginning WIP Inventory $ 7,800 $ 7,600 + Costs added during the period $ 128,600 $ 220,800 = Total Costs $ 136,400 $ 228,400 / Equivalent Units of production 10,160 9,980 = Cost per Equivalent Unit $ 13.425 $ 22.886 Units transferred to the next department 8,900 8,900 x Cost per equivalent unit $ 13.425 $ 22.886 Cost of units transferred $ 119,484.25 $ 203,683.37 Cost of units transferred $ 323,167.62