27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel- lent. On August 1,2010, the company had 9,800 units in the beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other mate- rials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead. Cost information for the month is as follows: Beginning WIP Inventory Canisters $ 6535 6,174 6,431 1,070 Other direct materials Direct labor Overhead August costs Canisters 61,940 Other direct materials 86,793 Direct labor 81,189 Overhead 160,176 Prepare a schedule showing the BeGone August 2010 computation of weighted aver- age equivalent units of production and cost per equivalent unit.

27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel- lent. On August 1,2010, the company had 9,800 units in the beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other mate- rials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead. Cost information for the month is as follows: Beginning WIP Inventory Canisters $ 6535 6,174 6,431 1,070 Other direct materials Direct labor Overhead August costs Canisters 61,940 Other direct materials 86,793 Direct labor 81,189 Overhead 160,176 Prepare a schedule showing the BeGone August 2010 computation of weighted aver- age equivalent units of production and cost per equivalent unit.

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Description: 27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel-lent. On August 1,2010, the company had 9,800 units in the beginning WIP Inventorythat were 100 percent complete as to canisters, 60 percent complete as to other mate-

FINANCIAL ACCOUNTING

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

27. LO.2 (WA EUP; cost per WA EUP) BeGone manufactures spray cans of insect repel-
lent. On August 1,2010, the company had 9,800 units in the beginning WIP Inventory
that were 100 percent complete as to canisters, 60 percent complete as to other mate-
rials, 40 percent complete as to direct labor, and 20 percent complete as to overhead.
During August, BeGone started 81,500 units in the manufacturing process. Ending
WIP Inventory included 4,600 units that were 100 percent complete as to canisters,
40 percent complete as to other materials, 20 percent complete as to direct labor, and
10 percent complete as to overhead.
Cost information for the month is as follows:
Beginning WIP Inventory
Canisters
$ 6,535
Other direct materials
6,174
Direct labor
6,431
Overhead
1,070
August costs
Canisters
61,940
Other direct materials
86,793
Direct labor
81,189
Overhead
160,176
Prepare a schedule showing the BeGone August 2010 computation of weighted aver-
age equivalent units of production and cost per equivalent unit.

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