COSTS Materials Costs Costs Costs to account for: Beginning work-in-process 550 745 $ 1,295 Costs added during the period 5,366 6,905 12,271 Total costs to account for 5,916 $ 7,650 $ 13,566 Divided by: Total EUP 5,100 5,100 $ 1.16 $ 1.50 Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process Total costs accounted for

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On March​ 1, the Mixing Department had 200 rolls of paper in process. During March​, the Mixing Department completed the mixing process for those 200 rolls and also started and completed the mixing process for an additional 4,800 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process.
**Cost Analysis Table for March Production**

This table provides a breakdown of costs for production over the month of March. It categorizes costs into three main areas: Direct Materials, Direct Labor, and Manufacturing Overhead Allocated. These are further divided into the Beginning Inventory, Costs Added during March, and Total Costs.

- **Direct Materials**
  - Beginning inventory as of March 1: $550
  - Costs added during March: $5,366
  - Total costs: $5,916

- **Direct Labor**
  - Beginning inventory as of March 1: $575
  - Costs added during March: $3,545
  - Total costs: $4,120

- **Manufacturing Overhead Allocated**
  - Beginning inventory as of March 1: $170
  - Costs added during March: $3,360
  - Total costs: $3,530

- **Total Costs**
  - Beginning inventory: $1,295
  - Costs added during March: $12,271
  - Total costs: $13,566

This table is useful for understanding how production costs are accumulated and distributed across different categories during a specific period.
Transcribed Image Text:**Cost Analysis Table for March Production** This table provides a breakdown of costs for production over the month of March. It categorizes costs into three main areas: Direct Materials, Direct Labor, and Manufacturing Overhead Allocated. These are further divided into the Beginning Inventory, Costs Added during March, and Total Costs. - **Direct Materials** - Beginning inventory as of March 1: $550 - Costs added during March: $5,366 - Total costs: $5,916 - **Direct Labor** - Beginning inventory as of March 1: $575 - Costs added during March: $3,545 - Total costs: $4,120 - **Manufacturing Overhead Allocated** - Beginning inventory as of March 1: $170 - Costs added during March: $3,360 - Total costs: $3,530 - **Total Costs** - Beginning inventory: $1,295 - Costs added during March: $12,271 - Total costs: $13,566 This table is useful for understanding how production costs are accumulated and distributed across different categories during a specific period.
**Birch Paper Co. Process Overview**

Birch Paper Co. produces paper for wallpaper manufacturers through a four-stage process: mixing, cooking, rolling, and cutting. The focus here is on the Mixing Department’s data for March.

### Total Units Accounted For:
- **Direct Materials:** 5,500 units
- **Conversion Costs:** 5,100 units

### Costs Breakdown:

#### Costs to Account For:
1. **Beginning Work-in-Process:**
   - Direct Materials: $550
   - Conversion Costs: $745
   - Total: $1,295

2. **Costs Added During the Period:**
   - Direct Materials: $5,366
   - Conversion Costs: $6,905
   - Total: $12,271

3. **Total Costs to Account For:**
   - Direct Materials: $5,916
   - Conversion Costs: $7,650
   - Total: $13,566

#### Cost Per Equivalent Unit:
- **Direct Materials:** $1.16 
- **Conversion Costs:** $1.50

#### Costs Accounted For: 
1. **Completed and Transferred Out:**
   - (Values to be computed and entered)

2. **Ending Work-in-Process:**
   - (Values to be computed and entered)

3. **Total Costs Accounted For:**
   - (Values to be computed and entered)

### Explanation:

This worksheet is used for analyzing and allocating costs in a manufacturing process. It specifies the direct materials and conversion costs, dividing them into beginning and added costs over a period. Each category's costs are totaled and divided by the Equivalent Units of Production (EUP) to calculate the cost per unit. It assists in understanding cost flow and efficiency in the production process.
Transcribed Image Text:**Birch Paper Co. Process Overview** Birch Paper Co. produces paper for wallpaper manufacturers through a four-stage process: mixing, cooking, rolling, and cutting. The focus here is on the Mixing Department’s data for March. ### Total Units Accounted For: - **Direct Materials:** 5,500 units - **Conversion Costs:** 5,100 units ### Costs Breakdown: #### Costs to Account For: 1. **Beginning Work-in-Process:** - Direct Materials: $550 - Conversion Costs: $745 - Total: $1,295 2. **Costs Added During the Period:** - Direct Materials: $5,366 - Conversion Costs: $6,905 - Total: $12,271 3. **Total Costs to Account For:** - Direct Materials: $5,916 - Conversion Costs: $7,650 - Total: $13,566 #### Cost Per Equivalent Unit: - **Direct Materials:** $1.16 - **Conversion Costs:** $1.50 #### Costs Accounted For: 1. **Completed and Transferred Out:** - (Values to be computed and entered) 2. **Ending Work-in-Process:** - (Values to be computed and entered) 3. **Total Costs Accounted For:** - (Values to be computed and entered) ### Explanation: This worksheet is used for analyzing and allocating costs in a manufacturing process. It specifies the direct materials and conversion costs, dividing them into beginning and added costs over a period. Each category's costs are totaled and divided by the Equivalent Units of Production (EUP) to calculate the cost per unit. It assists in understanding cost flow and efficiency in the production process.
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