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Marigold Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior brand. Marigold produces the paint in its mixing department and then transfers the paint to the canning department. The following information is presented for the canning department in March, recognizing that the company adds its conversion costs evenly throughout the process. One unit is one gallon of paint. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 1,700 47,500 48,200 1,000 Transferred-In 100% $12,020 DM 100% 100% $2,020 $408,500 $55,800 096 Conversion Costs 60% $1,880 $99,708 30%

Marigold Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior brand. Marigold produces the paint in its mixing department and then transfers the paint to the canning department. The following information is presented for the canning department in March, recognizing that the company adds its conversion costs evenly throughout the process. One unit is one gallon of paint. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 1,700 47,500 48,200 1,000 Transferred-In 100% $12,020 DM 100% 100% $2,020 $408,500 $55,800 096 Conversion Costs 60% $1,880 $99,708 30%

FINANCIAL ACCOUNTING
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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**Marigold Paints Canning Department Process Costing Information** Marigold Paints produces various interior and exterior paints, focusing on its top-selling interior brand. The company manufactures the paint in its mixing department and transfers it to the canning department. Below is the process costing information for March for the canning department, utilizing the FIFO method. Conversion costs are added evenly throughout the process. ### Table: Process Costing Details | **Category** | **Units** | **Transferred-In** | **DM** | **Conversion Costs** | |--------------------------------------------------|-----------|--------------------|--------|---------------------| | Units in beginning WIP Inventory | 1,700 | | 100% | 60% | | Beginning WIP Inventory degree of completion | | | | | | Costs in beginning WIP Inventory | | $2,020 | | $1,880 | | New units started | 47,500 | | | | | Costs added to WIP Inventory this period | | $40,580 | $55,800| $99,708 | | Units completed | 48,200 | | | | | Units in ending WIP Inventory | 1,000 | | 100% | 30% | | Ending WIP Inventory degree of completion | | | | | **Instructions for Completion:** Complete steps 1-5 of the template for the canning department of Marigold Paints using the FIFO method of process costing. Follow the instructions to clearly label: - Equivalent units of production for transferred-in, DM, and conversion costs. - The cost per equivalent unit for transferred-in, DM, and conversion costs. - The total cost of units completed and the total cost of units in ending WIP inventory. Ensure to round cost per equivalent unit answers to 2 decimal places.
Transcribed Image Text:**Marigold Paints Canning Department Process Costing Information** Marigold Paints produces various interior and exterior paints, focusing on its top-selling interior brand. The company manufactures the paint in its mixing department and transfers it to the canning department. Below is the process costing information for March for the canning department, utilizing the FIFO method. Conversion costs are added evenly throughout the process. ### Table: Process Costing Details | **Category** | **Units** | **Transferred-In** | **DM** | **Conversion Costs** | |--------------------------------------------------|-----------|--------------------|--------|---------------------| | Units in beginning WIP Inventory | 1,700 | | 100% | 60% | | Beginning WIP Inventory degree of completion | | | | | | Costs in beginning WIP Inventory | | $2,020 | | $1,880 | | New units started | 47,500 | | | | | Costs added to WIP Inventory this period | | $40,580 | $55,800| $99,708 | | Units completed | 48,200 | | | | | Units in ending WIP Inventory | 1,000 | | 100% | 30% | | Ending WIP Inventory degree of completion | | | | | **Instructions for Completion:** Complete steps 1-5 of the template for the canning department of Marigold Paints using the FIFO method of process costing. Follow the instructions to clearly label: - Equivalent units of production for transferred-in, DM, and conversion costs. - The cost per equivalent unit for transferred-in, DM, and conversion costs. - The total cost of units completed and the total cost of units in ending WIP inventory. Ensure to round cost per equivalent unit answers to 2 decimal places.
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