49 b 50 Department 1 Fow of units and equivalent units calculation January 2019 Production Where do the units come from? Where do the units go? Equivalent units 51 % work done Direct materials % work done 52 Conversion costs Beginning inventory Started Total 53 54 $ $ Total 55 56 Beginning inventory will be completed and transferred, and units started may either be completed and transferred, or remain in ending inventory. 57 58 59 Product cost report 60 61 Direct materials Conversion costs 62 Beginning inventory 63 64 Current Total costs to account for $ 65 66 Total equivalent units 67 68 Average cost/equivalent unit 69 70 Where do the costs go? 71 72 Completed/transferred: 73 74 75 Cost of goods manufactured Ending inventory: 76 77 78 79 Cost of ending inventory Total costs allocated 80 81 82 83 84 85 Department 2 Fw of units and equivalent units calculation January 2019 Production 8 c 87 Where do the units go? Equivalent units Where do the units come from? 88 Direct materials % work done % work done Conversion costs 89 Beginning inventory Started Completed/transferred $ 90 Ending inventory 91 $ $ Total Total 92 93 Beginning inventory will be completed and transferred, and units started may either be completed and transferred, or remain in ending inventory. 94 RE Product cost report Direct materials Conversion costs Beginning inventory Current Total costs to account for Total equivalent units Average cost/equivalent unit Where do the costs go? Completed/transferred: Direct materials Conversion costs Cost of goods manufactured Ending inventory: Direct materials Conversion costs $ Cost of ending inventory Total costs allocated
I cannot figure out how to do this two department problem
Patterson Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. Patterson uses the weighted average method for
Materials Inventory | $30,000 |
Work in process- Department 1 (3,000 units, 30% complete) | |
Direct materials | 4560 |
Conversion costs | 10,640 |
Work in process - Department 2 (3550 units, 40% complete) | 43,439 |
Finished goods inventory (2,000 units @ $16 | 32,000 |
During January, the following transactions occurred:
- Purchased materials on account, $90,000
- Placed $84,000 of materials into process in Department 1. This $84,000 represents 24,000 units of materials.
- Distributed total payroll costs: $108,116 of direct labor to Department 1, $62,700 of direct labor to Department 2, and $51,000 of indirect labor to Manufacturing
Overhead . - Incurred other actual
manufacturing overhead costs , $81,000. (Credit Other Accounts) - Applied overhead to the two processing departments: $88,000 to Department 1 and $43,900 to Department 2.
- Transferred 25,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 20% completed with respect to the conversion costs.
- Transferred 26,000 completed units from Department 2 to finished good inventory. The 2,550 units remaining in Department 2 were 70% completed with respect to conversion costs.
- Sold 20,000 units on account at $27 per unit. Patterson uses weighted average inventory costing procedures for the finished goods inventory.
Questions (see attached screenshot).
b.) Prepare a product cost report (with its supporting calculations) for Department 1
c.) Prepare a product cost report (with its supporting calculations) for Department 2
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