Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method Godfrey Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the weighted average method. The following data from the Work in Process-Blending Department account for January is missing a few items: Work in Process-Blending Department January 1 inventory (5,000 gallons, 60% processed) Direct material Conversion costs Transferred to Bottling Department (60,000 gallons) January charges: Direct material (61,000 gallons) Direct labor $18,000 8,850 228,750 110,400 73,200 Manufacturing overhead January 31 inventory [?gallons, 70% processed] Required Assuming Godfrey uses the weighted average method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory. Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method Godfrey Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the weighted average method. The following data from the Work in Process-Blending Department account for January is missing a few items: Work in Process-Blending Department January 1 inventory (5,000 gallons, 60% processed) Direct material Conversion costs Transferred to Bottling Department (60,000 gallons) January charges: Direct material (61,000 gallons) Direct labor $18,000 8,850 228,750 110,400 73,200 Manufacturing overhead January 31 inventory [?gallons, 70% processed] Required Assuming Godfrey uses the weighted average method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory. Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method
Godfrey Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling.
In the Blending
Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the weighted average
method. The following data from the Work in Process—Blending Department account for January is missing a few items:
Work in Process-Blending Department
January 1 inventory (5,000 gallons, 60% processed)
Direct material
Conversion costs
Transferred to Bottling Department (60,000 gallons)
January charges:
Direct material (61,000 gallons)
Direct labor
$18,000
8,850
228,750
110,400
73,200
Manufacturing overhead
January 31 inventory [? gallons, 70% processed]
Required
Assuming Godfrey uses the weighted average method in process costing, calculate the following amounts for the Blending Department:
a. Number of units in the January 31 inventory.
b. Equivalent units for materials and conversion costs.
c. January cost per equivalent unit for materials and conversion costs.
d. Cost of the units transferred to the Bottling Department.
e. Cost of the incomplete units in the January 31 inventory.
Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F16fef940-4511-470b-8855-bffc10fcd51b%2Fd42fe0ae-4070-43b3-9f48-4a8e54f10f86%2Fe0hy4vn_processed.png&w=3840&q=75)
Transcribed Image Text:Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method
Godfrey Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling.
In the Blending
Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the weighted average
method. The following data from the Work in Process—Blending Department account for January is missing a few items:
Work in Process-Blending Department
January 1 inventory (5,000 gallons, 60% processed)
Direct material
Conversion costs
Transferred to Bottling Department (60,000 gallons)
January charges:
Direct material (61,000 gallons)
Direct labor
$18,000
8,850
228,750
110,400
73,200
Manufacturing overhead
January 31 inventory [? gallons, 70% processed]
Required
Assuming Godfrey uses the weighted average method in process costing, calculate the following amounts for the Blending Department:
a. Number of units in the January 31 inventory.
b. Equivalent units for materials and conversion costs.
c. January cost per equivalent unit for materials and conversion costs.
d. Cost of the units transferred to the Bottling Department.
e. Cost of the incomplete units in the January 31 inventory.
Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.
Transcribed Image Text:Godfrey Manufacturing, Inc. Blending Department
Flow of Units and Equivalent Units Calculation, January
Complete/Transferred
Ending Inventory
Total
a.
Conversion costs
Cost of Goods Manufactured
Ending Inventory:
Direct Materials
Total Costs Allocated
Conversion costs
Cost of Ending Inventory
5,000
0
0
% Work
done
Beginning Inventory
Current
Total Costs to Account For
+ Total Equivalent Units
Average cost / Equivalent unit (round four decimal places)
Complete / Transferred:
Direct Materials
100%
100 %
b.
Product Cost Report
Direct
Materials
$
$
$
$
$
LA LA
$
Equivalent Units
% Work
Done
$
0
0
0
0 $
0
0 $
с
Direct
Materials
$
0
0 d.
O
0
0 e.
100%
0%
0
0
O
O
Conversion
Costs
Conversion
Costs
$
$
LA
0
0
0 b.
0 C. $
0
O
O
O
0 C.
O
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