Magic Company adds materials at the beginning of the process in Department A. The following information on physical units forDepartment A for the month of August is available.Work in process, August 1 (65% complete with respect to conversion)Started in AugustCompletedWork in process, August 31 (71% complete with respect to conversion)Required:a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.a. Using the weighted-average methodb. Using the FIFO methodEquivalent UnitsMaterials17,700118,900118,90017,700ConversionCosts

Name: Magic Company adds materials at the beginning of the process in Depar
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Description: Magic Company adds materials at the beginning of the process in Department A. The following information on physical units forDepartment A for the month of August is available.Work in process, August 1 (65% complete with respect to conversion)Started

Working:Calculation of equivalent units:Under weighted average method = Units completed and…

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process, August 1 ( 65% complete with respect to conversion) din August ed process, August 31 (71 % complete with respect to conversion) 17,700 118,900 118,900 17,700 d: ute the equivalent units for materials costs and for conversion costs using the weighted-average r

process, August 1 ( 65% complete with respect to conversion) din August ed process, August 31 (71 % complete with respect to conversion) 17,700 118,900 118,900 17,700 d: ute the equivalent units for materials costs and for conversion costs using the weighted-average r

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for
Department A for the month of August is available.
Work in process, August 1 (65% complete with respect to conversion)
Started in August
Completed
Work in process, August 31 (71% complete with respect to conversion)
Required:
a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.
a. Using the weighted-average method
b. Using the FIFO method
Equivalent Units
Materials
17,700
118,900
118,900
17,700
Conversion
Costs

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Q. 2
1. The number of units in work in process inventory at the end of the period. 2. Equivalent units of production for direct materials and conversion 3. Costs per equivalent unit for direct materials and conversion. 4. Cost of the units started and completed during the period.
PR 17-2A Cost of Production Report Obj. 2, 4 Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT Work in Process-Roasting Department Date July Item 1 Bal., 30,000 units, 10% completed 31 Direct materials, 155,000 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 149,000 units 31 Bal.,? units, 45% completed Instructions Answer Check Figure: Conversion cost per equivalent unit, $0.76 Debit Credit 620,000 90,000 33,272 PICTIO ? ACCOUNT NO. Balance Debit Credit 121,800 741,800 831,800 865,072 1. Prepare a cost of production report, and identify the missing amounts for Work in Process -Roasting Department. ? 2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the…
Question 1 of 1 \table[[Manufacturing Costs, Production Data], [Beginning work in process, $50, 193, Beginning work in process, 23, 400 units], [Costs added during month,,Units completed and transferred out,84, 240], [Direct materials, 299, 520, Units started in production, 99, 840], [Direct labor, 54, 756, Ending work in process,39,000 units], [Manufacturing overhead, 106, 704,, ]] Beginning work in process and ending work in process were 10% and 20% complete with respect to conversion costs, respectively. Prepare a production cost report for the Welding Department for February 2022. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) (3) Work in process, February 1 23400 SUPPORT Started into production 99840 larr Check for Understanding Chapter 16 Question 1 of 1 i Completed and 10 - transferred out Work in process, February 1 Started and completed Total Work in process, February 28 tal units (B) Costs to be accounted for
7. Using the following terms, complete the production cost report shown below: Ending work in process Total costs to account for Cost per equivalent unit Units started into production Manufacturing Overhead Beginning work in process Total units accounted for Raw Materials Inventory Transferred in costs Incurred during the period Completed and transferred out Total costs accounted for Finished Goods Inventory Equivalent units Total units to account for Materials are added at the beginning of the production process and ending work in process inventory is 80% complete with regard to conversion costs. Use the information provided to complete a production cost report using the weighted-average method. Cost to Account For Beginning inventory: materials $ 25,000 Beginning inventory: conversion 30,500 Direct materials 2,000 Direct labor 45,000 Applied overhead…
Data Section: Work in process, beginning Units started during the month Work in process, ending Costs to account for. Beginning work in process Materials added Conversion costs incurred Total costs to be accounted for Beg. Work in process Started & Completed Ending Work in process Total Whole Units $ $ $ S Units 50,000 220,000 30,000 Total 100,000 176,000 597,600 873,600 Direct Mat. % Added During the Month Cost per equivalent unit Percent Conversion 30% 80% Direct Mat. Equiv. Units Direct Mat. Conversion% Added During the Month HINT: To find started and completed: Completed units - beginning inventory Started during the month - ending inventory Conversion Equiv. Units Conversion Beginning Inventory Cost assignment Direct Materials Conversion Total Amount reported on the balance sheet as Finished goods inventory Work in Process inventory
Required: Prepare a quantitative comparison of the traditional and activity-based cost assignments.
Subject: Accounting
am. 24.