Hi-T Company uses the weighted average method of process costing. Information for the company's first production process follows. All direct materials are added at the beginning of this process, and conversion costs are added uniformly throughout the process. Beginning work in process inventory. Completed and transferred out Ending work in process inventory Beginning work in process Direct materials Conversion Costs added this period i Direct materials. Conversion Total costs to account for Units 4,000 30,000 9,000 Direct Materials Percent Complete. 100% 100% $ 42,500 98,040- 445,000 369,000 Conversion Percent Complete 80% 40% $ 140,540 814,000 $ 954,540 a. Compute the equivalent units of production for both direct materials and conversion. b. Compute the cost per equivalent unit for both direct materials and conversion. c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory.
Hi-T Company uses the weighted average method of process costing. Information for the company's first production process follows. All direct materials are added at the beginning of this process, and conversion costs are added uniformly throughout the process. Beginning work in process inventory. Completed and transferred out Ending work in process inventory Beginning work in process Direct materials Conversion Costs added this period i Direct materials. Conversion Total costs to account for Units 4,000 30,000 9,000 Direct Materials Percent Complete. 100% 100% $ 42,500 98,040- 445,000 369,000 Conversion Percent Complete 80% 40% $ 140,540 814,000 $ 954,540 a. Compute the equivalent units of production for both direct materials and conversion. b. Compute the cost per equivalent unit for both direct materials and conversion. c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process inventory.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Hi-T Company uses the weighted average method of process costing. Information for the company's first production process follows.
All direct materials are added at the beginning of this process, and conversion costs are added uniformly throughout the process.
Beginning work in process inventory
Completed and transferred out
Ending work in process inventory
Beginning work in process.
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Units
4,000
30,000
9,000
Direct
Materials
Percent
Complete
100%
100%
$ 42,500
98,040
445,000
369,000
Conversion
Percent
Complete
80%
40%
$ 140,540
Complete this question by entering your answers in the tabs below.
814,000
$ 954,540
a. Compute the equivalent units of production for both direct materials and conversion.
b. Compute the cost per equivalent unit for both direct materials and conversion.
c. Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process
inventory.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B ♦ Required C
Compute the equivalent units of production for both direct materials and conversion.
Equivalent Units of Production: Weighted average
Direct Materials
EUP
Completed and transferred out
Total
Cost per Equivalent Unit of Production
Total costs
+ Equivalent units of production
Cost per equivalent unit of production
Units
Required A Required B Required C
Compute the cost per equivalent unit for both direct materials and conversion.
Note: Round "Cost per EUP" to 2 decimal places.
Required A
Completed and transferred out
Direct materials
Conversion
Total Completed and transferred out
Ending work in process
Direct materials
Conversion
Total ending work in process
Total costs accounted for
Percent
Complete
EUP
Direct
Materials
< Required A
Complete this question by entering your answers in the tabs below.
<Required B
Required B >
Conversion
Cost per EUP
Required B required C
Assign costs to the department's output-specifically, to the units transferred out and to the units in ending work in process
inventory.
Note: Round "Cost per EUP" to 2 decimal places.
Cost assignment-Weighted average
Conversion
Percent
Complete
Required C >
Total cost
$
EUP
0
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