Horngren's Financial & Managerial Accounting: The Managerial Chapters, 8th Edition E-M:3-21 Computing EUP, assigning costs, no beginning WIP or costs transferred in Every Color prepares and packages paint products. Every Color has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of May for the Blending Department are as follows: Gallons Beginning Work-in-Process Inventory 0 gallons Started in production 9,000 gallons Completed and transferred out to Packaging in May 4,000 gallons Ending Work-in-Process Inventory (30% of the way through the blending process) 5,000 gallons Costs Beginning Work-in-Process Inventory $ 0 Costs added during May: Direct materials 6,750 Direct labor 1,300 Manufacturing overhead allocated 2,000 Total costs added during May $ 10,050 Requirements 1. Compute the Blending Department’s equivalent units of production for direct materials and for conversion costs. 1. Total EUP for CC 5,500 2. Compute the total costs of the units (gallons) a. completed and transferred out to the Packaging Department. b. in the Blending Department ending Work-in-Process Inventory.

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 6DQ: Rameriz Company is a process manufacturer with two production departments, Blending and Filling. All...

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Horngren's Financial & Managerial Accounting: The Managerial Chapters, 8th Edition

E-M:3-21 Computing EUP, assigning costs, no beginning WIP or costs transferred in

Every Color prepares and packages paint products. Every Color has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of May for the Blending Department are as follows:

Gallons
Beginning Work-in-Process Inventory	0 gallons
Started in production	9,000 gallons
Completed and transferred out to Packaging in May	4,000 gallons
Ending Work-in-Process Inventory (30% of the way through the blending process)	5,000 gallons
Costs
Beginning Work-in-Process Inventory	$ 0
Costs added during May:
Direct materials	6,750
Direct labor	1,300
Manufacturing overhead allocated	2,000
Total costs added during May	$ 10,050

Requirements

1. Compute the Blending Department’s equivalent units of production for direct materials and for conversion costs.

1. Total EUP for CC 5,500

2. Compute the total costs of the units (gallons)
a. completed and transferred out to the Packaging Department.

b. in the Blending Department ending Work-in-Process Inventory.