Problem 6A-7 CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June: Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Equivalent units of production Materials Conversion Units 64,000 427,000 363,000 128,000 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Cost of ending work in proces verty Cost of units transferred out Percentage Completed Materials Conversion 60% 258 Cost Reconciation 50% Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 Costs to be accounted for Cost of beginning work in process inventory Costs added to production during the period Materials 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places) 30% Cost per equivalent unit 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process n June. (Round intermediate calculations to 3 decimal places) Materials Conversion Conversion 4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units bransferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places)
Problem 6A-7 CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June: Work in process, beginning Started into production Completed and transferred out Work in process, ending Work in process, beginning Cost added during June Equivalent units of production Materials Conversion Units 64,000 427,000 363,000 128,000 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Cost of ending work in proces verty Cost of units transferred out Percentage Completed Materials Conversion 60% 258 Cost Reconciation 50% Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 Costs to be accounted for Cost of beginning work in process inventory Costs added to production during the period Materials 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places) 30% Cost per equivalent unit 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process n June. (Round intermediate calculations to 3 decimal places) Materials Conversion Conversion 4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units bransferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 6A-7 CloverSweet Inc. manufactures a
product that goes through two departments prior
to completion. The information shown in the table
below is available about work in the first
department, the Mixing Department, during June:
Work in process, beginning
Started into production
Completed and transferred out
Work in process, ending
Work in process, beginning
Cost added during June.
Equivalent units of production
Materials Conversion
Cost of ending work in process inventory
Cost of units transferred out
Required:
Assume that the company uses the FIFO method.
1. Determine the equivalent units for June for the first process.
Cost Reconciliation
Costs to be accounted for
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Costs of units transferred out
Total cost accounted for
Units
64,000
427,000
363,000
128,000
$ 24,500
$477,000
$
Materials Conversion
$ 22,000
$124,000
2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)
S
Percentage Completed
Materials Conversion
608
25%
Cost per equivalent unit
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process
n June. (Round intermediate calculations to 3 decimal places.)
Materials Conversion
0
50%
Materials
0
4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units
transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate
calculations to 3 decimal places)
30%
Total
Conversion
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