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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...

See similar textbooks

Related questions

Concept explainers

Question

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.