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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 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 process inventory Cost of units transferred out 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 Units 64,000 Materials Costs accounted for as follows Cost of ending work in process inventory Costs of units transferred out Total cost accounted for 427,000 363,000 128,000 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials 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.) S Percentage Completed Materials Conversion 60% 258 Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 $ 50% Conversion Conversion 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.) 308 Total

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 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 process inventory Cost of units transferred out 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 Units 64,000 Materials Costs accounted for as follows Cost of ending work in process inventory Costs of units transferred out Total cost accounted for 427,000 363,000 128,000 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials 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.) S Percentage Completed Materials Conversion 60% 258 Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 $ 50% Conversion Conversion 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.) 308 Total

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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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 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Materials Conversion Cost of ending work in process inventory Cost of units transferred out Units 64,000 427,000 363,000 128,000 Materials 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 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 Percentage Completed Materials Conversion 60% 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.) $ 50% Materials Conversion $ Conversion 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.) 0 308 Total
Transcribed Image Text: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 Required: Assume that the company uses the FIFO method. 1. Determine the equivalent units for June for the first process. Materials Conversion Cost of ending work in process inventory Cost of units transferred out Units 64,000 427,000 363,000 128,000 Materials 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 2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.) Materials Conversion $ 24,500 $ 22,000 $477,000 $124,000 Percentage Completed Materials Conversion 60% 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.) $ 50% Materials Conversion $ Conversion 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.) 0 308 Total
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