Problem No. 3 (Cost Accounting) Determine the following using the weighted average (WA) method of process costing 1. Equivalent units of production for materials and conversion cost2. unit costs, and;3. Inventory values Problem no. 3Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other informationabout that beginning Work in Process Inventory is as follows:Quantity: 800 unitsPercent Complete456540Costs Incurred$ 6,7488,6805,710$21,138Direct materialDirect laborOverheadTotal beginning inventoryDirect labor costs were extremely high during February, because the company had a laborstrike and paid a high premium to get production workers that month.During March, Delacroix Co. started production of 11,400 units of product and incurred$259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end ofMarch, the company had 400 units in process (70 percent complete as to material, 90 percentcomplete as to direct labor, and 80 percent complete as to overhead).

Given that, Beginning work in progress inventory = 800 units Units started in production = 11,400…

Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows: Quantity: 800 units Percent Complete Direct material Direct labor Overhead 45 65 40 Costs Incurred $ 6,748 8,680 5,710 $21,138 Total beginning inventory Direct labor costs were extremely high during February, because the company had a labor strike and paid a high premium to get production workers that month. During March, Delacroix Co. started production of 11,400 units of product and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of March, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead).

Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information about that beginning Work in Process Inventory is as follows: Quantity: 800 units Percent Complete Direct material Direct labor Overhead 45 65 40 Costs Incurred $ 6,748 8,680 5,710 $21,138 Total beginning inventory Direct labor costs were extremely high during February, because the company had a labor strike and paid a high premium to get production workers that month. During March, Delacroix Co. started production of 11,400 units of product and incurred $259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of March, the company had 400 units in process (70 percent complete as to material, 90 percent complete as to direct labor, and 80 percent complete as to overhead).

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Problem No. 3 (Cost Accounting)

Determine the following using the weighted average (WA) method of process costing

1. Equivalent units of production for materials and conversion cost

2. unit costs, and;

3. Inventory values

Problem no. 3
Delacroix Co. had 800 units of inventory at the beginning of March 2010. Other information
about that beginning Work in Process Inventory is as follows:
Quantity: 800 units
Percent Complete
45
65
40
Costs Incurred
$ 6,748
8,680
5,710
$21,138
Direct material
Direct labor
Overhead
Total beginning inventory
Direct labor costs were extremely high during February, because the company had a labor
strike and paid a high premium to get production workers that month.
During March, Delacroix Co. started production of 11,400 units of product and incurred
$259,012 for material, $58,200 for direct labor, and $188,210 for overhead. At the end of
March, the company had 400 units in process (70 percent complete as to material, 90 percent
complete as to direct labor, and 80 percent complete as to overhead).

Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.

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