P4-1A Calculate Equivalent Units, Unit Costs, and Transferred Costs--Weighted Average Method Canfield Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Canfield uses the weighted average method. The following data from the Work-in-Process--Blending Department account for January 2019 are missing a few items: Work-in-Process--Blending Department January 1 inventory (5,000 gallons, 60% processed Direct materials $ 12,000 Conversion costs $ 5,900 Transferred to Bottling Department (60,000 gallons) January charges: Direct materials (61,000 gallons) 153,000 Direct labor 73,600 Manufacturing overhead 42,480 January 31 inventory (______ gallons, 70% processed) Required Assuming Canfield uses the weighted average method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory.

P4-1A Calculate Equivalent Units, Unit Costs, and Transferred Costs--Weighted Average Method Canfield Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Canfield uses the weighted average method. The following data from the Work-in-Process--Blending Department account for January 2019 are missing a few items: Work-in-Process--Blending Department January 1 inventory (5,000 gallons, 60% processed Direct materials $ 12,000 Conversion costs $ 5,900 Transferred to Bottling Department (60,000 gallons) January charges: Direct materials (61,000 gallons) 153,000 Direct labor 73,600 Manufacturing overhead 42,480 January 31 inventory (______ gallons, 70% processed) Required Assuming Canfield uses the weighted average method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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P4-1A

Calculate Equivalent Units, Unit Costs, and Transferred Costs--Weighted Average Method

Canfield Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Canfield uses the weighted average method. The following data from the Work-in-Process--Blending Department account for January 2019 are missing a few items:

Work-in-Process--Blending Department

January 1 inventory (5,000 gallons, 60% processed

Direct materials

$ 12,000

Conversion costs

$ 5,900

Transferred to Bottling Department (60,000 gallons)

January charges:

Direct materials (61,000 gallons)

153,000

Direct labor

73,600

Manufacturing overhead

42,480

January 31 inventory (______ gallons, 70% processed)

Required

Assuming Canfield uses the weighted average method in process costing, calculate the following amounts for the Blending Department:

a. Number of units in the January 31 inventory.

b. Equivalent units for materials and conversion costs.

c. January cost per equivalent unit for materials and conversion costs.

d. Cost of the units transferred to the Bottling Department.

e. Cost of the incomplete units in the January 31 inventory.

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