Académique Documents
Professionnel Documents
Culture Documents
numberofunits toalcostper
89,000$3.1 $280,350
5
....................................................
Direct
Material Conversion
Total equivalent units (weighted average).................. 103,000 97,000
Units completed and transferred out......................... (89,000 ) (89,000 )
Equivalent units in ending work in process................ 14,000 8,000
EXERCISE 4-23 (25 MINUTES)
numberofunits toalcostper
47,000$9.70 $455,900
..................................................
Direct
Material Conversion
Total equivalent units (weighted average)................... 62,500 49,000
Units completed and transferred out........................... (47,000 ) (47,000 )
Equivalent units in ending work in process................. 15,500 2,000
Accumulated Direct-
by material
batch costs
Work-in-Process Inventory:
Packaging Department
Batch P25
Finished-Goods Inventory
EXERCISE 4-24 (CONTINUED)
Professional
Scholastic
Direct material:..........................................................
Batch P25 ($42,000 ÷ 2,000)................................. $21.00 -0-
Batch S33 ($45,000 ÷ 4,000)................................. -0- $11.25
Conversion: Preparation Department......................... 7.50 7.50
Conversion: Finishing Department............................ 6.00 6.00
*Conversion: Packaging Department.......................... .50 -0-
Total product cost..................................................... $35.00 $24.75
*The two production departments each worked on a total of 6,000 balls, but the
Packaging Department handled only the 2,000 professional balls.
3. Journal entries:
2. Equivalent units:
Percentage
of
Completion
with Equivalent Units
Physical Respect to Direct
Units Conversion Material Conversion
Work in process, June 1........ 40,000 38%
Units started during June...... 190,000
Total units to account for....... 230,000
numberofunits toalcostper
180,000$4.0 $720,000
0
...................................................
Direct material:
5
equivalent equivalent
u ni t s o f un i t o f
...................................................
direct material direct material
Conversion:
number of cost per 27,500$1.6 45,375
5
e quivalent equivalent
u n i ts o f u n i t o f
..........................................................
c o n v er s i o n c o n v er s i o n
Total cost of June 30 work in process.............................................. $162,875
JR1163........................... $ 225,000
JY1065........................... 710,000
DC0766.......................... 455,000
Total......................... $1,390,000
2. Goods completed during April cost $2,002,000 (26,000 units x $77) as the
following calculations show:
Percentage
Of
Completion Equivalent Units
With
Physical Respect to Direct
Units Conversion Material
Conversion
Direct
Material Conversion Total
4. (a) No material would be added during May. All material is introduced at the
start of the manufacturing process, and these units were begun in April.
(b) Since the work-in-process inventory is 45% complete at the end of April,
55% of the conversion would be done in May.
The missing amounts are shown below. A completed production report follows.
Direct
Material Conversion Total
Work in process, October 1....... $112,000 $ 30,225 $ 142,225
Costs incurred during October. . . 600,000 900,000 1,500,000
Total costs to account for........... $712,000 $930,225 $1,642,225
Equivalent units........................ 80,000 78,500
Costs per equivalent unit........... $8.90* $11.85 † $20.75**
n u mbe r o f un it s t o al c o s t p e r
........................................................ 75,000$20.75 $1,556,250
Direct material:
n um ber of c os t per
e q u i va l e n t e q u i v a l e n t
u ni ts of uni t of
.......................................................... 5,000$8.90 $44,500
directmaterial directmaterial
Conversion:
number of cos t per
e quiva le nt eq uiva le nt
u n its o f u n it o f
............................................................... 3,500$11.85 41,475
c o n v e r s i o n c o n v e r s i o n
Total cost of October 31 work-in-process............................................... $85,975
*Note that all of the products sold after processing in departments I, II, or III were
produced orginally in department I.
*Note that all of the products sold after processing in departments II and III were
colored in department II.