CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June: Percentage Completed Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending Unite 53,000 452,000 399,000 106,000 75% 358 708 15% Work in process, beginning Cost added during June Haterials $ 28,500 $334,000 Conversion $ 18,000 $132,000 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials Conversion Cost per equivalent unit 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.) Materials Conversion Total Cost of ending work in process inventory Cost of units transferred out

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June: Percentage Completed Materials Conversion Work in process, beginning Started into production Completed and transferred out Work in process, ending Unite 53,000 452,000 399,000 106,000 75% 358 708 15% Work in process, beginning Cost added during June Haterials $ 28,500 $334,000 Conversion $ 18,000 $132,000 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Materials Conversion Equivalent units of production 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials Conversion Cost per equivalent unit 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.) Materials Conversion Total Cost of ending work in process inventory Cost of units transferred out

Name: CloverSweet Inc. manufactures a product that goes through two departm
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Description: CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the tablebelow is available about work in the first department, the Mixing Department, during June:Unite53,000452,00০Percentage C

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

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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Question

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table
below is available about work in the first department, the Mixing Department, during June:
Unite
53,000
452,00০
Percentage Completed
Materials Conversion
758
Work in process, beginning
Started into production
Completed and transferred out
Work in process, ending
358
399,000
106,000
708
15%
Work in process, beginning
Cost added during June
Materials Conversion
$ 28,500
$334,000
$ 18, 0০০
$132,000
Required:
Assume that the company uses the FIFO method.
1. Determine the equivalent units for June for the first process.
Materials
Conversion
Equivalent units of production
2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)
Materials
Conversion
Cost per equivalent unit
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in
June. (Round intermediate calculations to 3 decimal places.)
Materials
Conversion
Total
Cost of ending work in process inventory
Cost of units transferred out
4. Prepare a report that reconciles the total costs assigned to the ending work In process inventory and the units transferred out with
the costs in beginning Inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Costs of units transferred out
Total cost accounted for

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