How much is the cost of WIP, end using FIFO *Dmahirap company adds all materials at the beginning of the process in the first department. Conversioncosts were 75% complete as to 8,000 units in WIP.beg and 50% complete as to 6,000 units in WIP,end.During the month, 12,000 units were completed and transferred to the next department. Analysis of thecosts relating to production for October follows:MaterialsConversionCostP4,800WIP,begCosts added this month | 15,600P9,60014,400

Solution: Dmahirap Company First Department Computation of Equivalent unit (FIFO)…

Answered: How much is the cost of WIP, end using…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Clonex Labs, Incorporated, uses the weighted average method in its process costing system. The following data are available for one department for October: Units Percent Completed Materials Conversion Work in process, October 1 48,000 90 % 60% Work in process, October 31 36,000 75 % 52% The department started 398,000 units into production during the month and transferred 410,000 completed units to the next department. Required: Compute the equivalent units of production for October. Materials Conversion Equivalent units of production
The Samrock Paint Company uses a process-costing system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work in process at the beginning of the month is 30% complete, while at the end it is 25% complete. One gallon of material makes one gallon of product. Data is as follows: Beginning inventory 900 gal Direct materials added 9,300 gal Ending inventory 2,400 gal Conversion costs incurred $39,800 Cost of direct materials added $82,950 Conversion costs, beginning inventory $1,700 Cost of direct materials, beginning inventory $2,900 Use the weighted average method. Prepare a schedule of output in equivelent units and a schedule of application of costs to products. Show the costs of goods completed and cost of ending work in process.
Equivalent Units of Production The Converting Department of Girders Company uses the weighted average cost (WAC) method and had 3,500 units in work in process that were 60% complete at the beginning of the period. During the period, 24,900 units were started and 25,200 units were completed and transferred to the Packing Department. There were 3,200 units in process that were 30% complete at the end of the period. a. Determine the number of units to be accounted for and to be assigned costs for the period. Whole Units Units to be accounted for Units to be assigned costs b. Determine the number of equivalent units production for the period. 27,000 X Feedback. 24,900 X 27,000 X Check My Work (a) Recall that the numberof units to be accounted for is the sum of the units in beginning work in process and the units started during the period. Also know that the number of units to be assigned costs s the sum of the units transferred to the Packing Department during the period and the ending…
Computing EUP Collins Company has the following data for the Assembly Department for August: Conversion costs are added evenly throughout the process. The company uses the Weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario: Units in process at the end of August are 20% complete; materials are added at the beginning of the process. Units in process at the end of August are 80% complete; materials are added at the beginning of the process. Units in process at the end of August are 20% complete, materials are added at the end of the process Units in process at the end of August are 80% complete, materials are added at the halfway point.
ABC Products Company uses process costing to manufacture its products. For June, the company had the following data. Beginning work in process inventory Degree of completion 25% 4,500 units Units started in June 15,000 units Units completed 17,500 units Ending work in process inventory Degree of completion 75% 2,000 units Cost of beginning work in process $5,250 Direct material costs, current $16,500 Conversion costs, current $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Required: Prepare a production cost worksheet using the FIFO method Prepare a production cost worksheet using the Weighted Average Method. Under which circumstances there will be no difference between using FIFO or Weighted Average Method for process costing. Please make your comments only for process costing not as an inventory cost flow approach.
Compute the unit costs for conversion cost for the month of September.
Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information: work in process, April 1 units started during April work in process, April 30 work in process, April 1 costs added during April total costs units Calculate the conversion costing method. 27,000 59,000 34,000 % complete DM 60% 70% The cost of beginning work in process and the costs added during April were as follows: % complete 85% 40% conversion Conversion $191,175 $208.985 $400,160 DM $ 25,310 $190.720 $216,030 unit cost using the weighted average process Total cost $216,485 $399,705 $616,190
How much is the cost of WIP, end using FIFO Dmahirap company add all materials at the beginning of the process in the first department. Conversion costs were 75% complete as to 8,000 units in WIP, beg and 50% complete as to 6,000 units in WIP, end. During the month, 12,000 units were completed and transferred to the next department. Analysis of the costs relating to production for October follows: Materials Conversion WIP, Beg P9,600 P4,800 Cost added this month 15,600 14,400
The Assembling Department of Fletcher Company has the following cost and production data for the month of April. Costs: Work in process, April 1 Direct materials: 100% complete $100,000 Conversion costs: 25% complete 85,700 Cost of work in process, April 1 $185,700 Costs incurred during production in April Direct materials $ 708,000 Conversion costs 300,000 Costs incurred in April $1,008,000 Units transferred out totaled 18,000. Ending work in process was 2,000 units that are 100% complete as to materials and 50% complete as to conversion costs. Instructions Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April. (b) Compute the unit costs for the month. (c) Determine the…
Red Company adds materials at the beginning of the process in Department O. The following data pertains to Department O's work in process during March: Units work in process on March 1: ( 60% complete as to conversion cost ) 3,000 25,000 20,000 Units started in March Units completed in March Units work in process on March 31: ( 75% complete as to conversion cost) 8,000 Under the average costing method, the equivalent units for conversion cost is: а. 21,800 b. 26,000 с. 24,000 d. 25,000
Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: During July: On July 31: Beginning inventories = 750 units, 60% complete Direct materials cost = $5,925 Conversion costs = $4,095 15,000 units started Direct materials added = $150,000 Conversion costs added = $83,520 Ending inventories = 1,500 units, 40% complete Using the FIFO method, the number of units started and completed in July was a) 14,250 b) 15,000 c) 13,500 d) 15,750
Amerisama Company makes a variety of products. Its Texturing Department reports the following information for September of the current year:Units:Completed and transferred out 7,400Unfinished units, work in process, September 30: 3,500*Costs:Direct Materials $110,000Direct Labor 55,000Manufacturing overhead 80,000*100% complete for direct materials and 40% complete for conversion costs incurred.Compute the cost per equivalent unit for conversion costs.$10.09$9.09$12.39$15.34

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