The processing department at Wildhorse Corporation evaluated the costs associated with manufacturing paper towels for the past month. Beginning and newly added costs for May are as follows. Step 3: Account for costs Total costs DM Conversion Costs Costs in beginning WIP Inventory (from last period) $1,780 $1,480 $300 Costs added to WIP Inventory this period 12,020 8,120 3,900 Total costs to account for $13,800 $9,600 $4,200 (a) Show the T-account for Wildhorse’s WIP Inventory reflecting all of the appropriate costs above. WIP Inventory select an option enter a debit amount select an option enter a credit amount select an option enter a debit amount select an option enter a credit amount select an option enter a debit amount select an option enter a credit amount select an option enter a debit balance select an option

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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Step 3: Account for costs
	Total costs	DM	Conversion Costs
Costs in beginning WIP Inventory (from last period)	$1,780	$1,480	$300
Costs added to WIP Inventory this period	12,020	8,120	3,900
Total costs to account for	$13,800	$9,600	$4,200

(a)

Show the T-account for Wildhorse’s WIP Inventory reflecting all of the appropriate costs above.

WIP Inventory
select an option	enter a debit amount	select an option	enter a credit amount
select an option	enter a debit amount	select an option	enter a credit amount
select an option	enter a debit amount	select an option	enter a credit amount
select an option	enter a debit balance	select an option	enter a credit balance

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Part B:

Assuming Wildhorse uses the FIFO method of process costing, complete Step 4 to determine its cost per equivalent unit for both DM and conversion costs. (Round cost per equivalent unit answers to 2 decimal places, e.g. 15.25.)

		DM		Conversion Costs
Total equivalent units of work done this period (FIFO)		29,000		26,000

STEP 4
Calculate Cost Per Equivalent Unit	DM	Conversion Cost
select an item Correct answer	$enter a dollar amount Correct answer	$enter a dollar amount Correct answer
select an item Correct answer	enter a number of unitsCorrect answer	enter a number of unitsCorrect answer
select a closing name Correct answer	$enter a dollar amount rounded to 2 decimal places	$enter a dollar amount rounded to 2 decimal places

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