EXERCISE 4-11 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and over- head. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $12.50 $3.20 $6.40 Required: Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. 1. 2. Compute the cost of ending inventory and of the units transferred to the next department for January. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.) 3.
EXERCISE 4-11 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to the next department. The cost of beginning inventory and the costs added during January amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and over- head. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $12.50 $3.20 $6.40 Required: Compute the equivalent units of materials, labor, and overhead in the ending inventory for the month. 1. 2. Compute the cost of ending inventory and of the units transferred to the next department for January. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.) 3.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 4-11 and 4-12
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$500
Pulping cost in ork in process inventory, March 1.
Units transferred to the next production department
Pulping cost added during March...
Conversion cost added during March.
157,000
$102,450
$31,300
No materials are added in the Drying Department. Pulping cost represents the costs of the wet
fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department
in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount
of dried paper that is passed on to the Finishing Department.
Required:
Determine the equivalent units for March for pulping and conversion.
Compute the costs per equivalent unit for March for pulping and conversion.
Determine the total cost of ending work in process inventory and the total cost of units trans-
1.
2.
3.
ferred to the Finishing Department in March.
Prepare a cost reconciliation report for the Drying Department for March.
4.
EXERCISE 4-11 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5]
Superior Micro Products uses the weighted-average method in its process costing system. During
January, the Delta Assembly Department completed its processing of 25,000 units and transferred
them to the next department. The cost of beginning inventory and the costs added during January
amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which
were 80% complete with respect to materials and 60% complete with respect to labor and over-
head. The costs per equivalent unit for the month were as follows:
Materials
Labor
Overhead
Cost per equivalent unit
$12.50
$3.20
$6.40
Required:
Compute the equivalent units of materials, labor, and overhead in the ending inventory for the
1.
month.
2. Compute the cost of ending inventory and of the units transferred to the next department for
January.
3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be
accounted for into the cost of beginning inventory and costs added during the month.)
EXERCISE 4-12 Equivalent Units-Weighted-Average Method [LO2]
Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved-
Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department
during July are presented below:
Percent Completed
Pounds of
Labor and
Salmon
Materials
Overhead
Work in process, July 1
Work in process, July 31
20,000
100%
30%
25,000
100%
60%
A total of 380,000 pounds of salmon were started into processing during July. All materials
are added at the beginning of processing in the Cleaning Department.
Required:
Compute the equivalent units for July for both materials and labor and overhead assuming that the
company uses the weighted-average method of accounting for units.
168
Chapter 4
Problems
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PROBLEM 4–13 Comprehensive Problem-Weighted-Average Method [LO2, LO3,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd7fdd96-cde6-4f2a-a8d9-46e4a4cd998b%2Fcbd91c34-fe07-4122-933c-25ac16c1fe8f%2F97hjpb_processed.jpeg&w=3840&q=75)
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$500
Pulping cost in ork in process inventory, March 1.
Units transferred to the next production department
Pulping cost added during March...
Conversion cost added during March.
157,000
$102,450
$31,300
No materials are added in the Drying Department. Pulping cost represents the costs of the wet
fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department
in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount
of dried paper that is passed on to the Finishing Department.
Required:
Determine the equivalent units for March for pulping and conversion.
Compute the costs per equivalent unit for March for pulping and conversion.
Determine the total cost of ending work in process inventory and the total cost of units trans-
1.
2.
3.
ferred to the Finishing Department in March.
Prepare a cost reconciliation report for the Drying Department for March.
4.
EXERCISE 4-11 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5]
Superior Micro Products uses the weighted-average method in its process costing system. During
January, the Delta Assembly Department completed its processing of 25,000 units and transferred
them to the next department. The cost of beginning inventory and the costs added during January
amounted to $599,780 in total. The ending inventory in January consisted of 3,000 units, which
were 80% complete with respect to materials and 60% complete with respect to labor and over-
head. The costs per equivalent unit for the month were as follows:
Materials
Labor
Overhead
Cost per equivalent unit
$12.50
$3.20
$6.40
Required:
Compute the equivalent units of materials, labor, and overhead in the ending inventory for the
1.
month.
2. Compute the cost of ending inventory and of the units transferred to the next department for
January.
3. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be
accounted for into the cost of beginning inventory and costs added during the month.)
EXERCISE 4-12 Equivalent Units-Weighted-Average Method [LO2]
Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved-
Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department
during July are presented below:
Percent Completed
Pounds of
Labor and
Salmon
Materials
Overhead
Work in process, July 1
Work in process, July 31
20,000
100%
30%
25,000
100%
60%
A total of 380,000 pounds of salmon were started into processing during July. All materials
are added at the beginning of processing in the Cleaning Department.
Required:
Compute the equivalent units for July for both materials and labor and overhead assuming that the
company uses the weighted-average method of accounting for units.
168
Chapter 4
Problems
connect
PROBLEM 4–13 Comprehensive Problem-Weighted-Average Method [LO2, LO3,
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