Process Costing Sample Problem Consider the following data for Assembly Division of ABC Company. The Assembly Division of ABC Company uses weighted-average method of process costing. Physical Units (watches) Direct Materials Conversion Costs Beg. WIP (May 1, 2020)*a 80 P 493,360 P 91,040 Started in May 2020 500 Completed during May 2020 460 Ending WIP (May 31, 2020)"b 120 Total cost added during May 2020 3,220,000 1,392,000 Additional information: *a Degree of completion: direct materials, 90%; conversion costs, 40% *b Degree of completion: direct materials, 60%; conversion costs, 30% Required: 1. Compute for the equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 2. Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion cost, and assign total costs to units completed (and transferred out) and to units in ending WIP.
Process Costing Sample Problem Consider the following data for Assembly Division of ABC Company. The Assembly Division of ABC Company uses weighted-average method of process costing. Physical Units (watches) Direct Materials Conversion Costs Beg. WIP (May 1, 2020)*a 80 P 493,360 P 91,040 Started in May 2020 500 Completed during May 2020 460 Ending WIP (May 31, 2020)"b 120 Total cost added during May 2020 3,220,000 1,392,000 Additional information: *a Degree of completion: direct materials, 90%; conversion costs, 40% *b Degree of completion: direct materials, 60%; conversion costs, 30% Required: 1. Compute for the equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 2. Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion cost, and assign total costs to units completed (and transferred out) and to units in ending WIP.
Process Costing Sample Problem Consider the following data for Assembly Division of ABC Company. The Assembly Division of ABC Company uses weighted-average method of process costing. Physical Units (watches) Direct Materials Conversion Costs Beg. WIP (May 1, 2020)*a 80 P 493,360 P 91,040 Started in May 2020 500 Completed during May 2020 460 Ending WIP (May 31, 2020)"b 120 Total cost added during May 2020 3,220,000 1,392,000 Additional information: *a Degree of completion: direct materials, 90%; conversion costs, 40% *b Degree of completion: direct materials, 60%; conversion costs, 30% Required: 1. Compute for the equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 2. Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion cost, and assign total costs to units completed (and transferred out) and to units in ending WIP.
Transcribed Image Text:Process Costing Sample Problem
Consider the following data for Assembly Division of ABC Company. The Assembly
Division of ABC Company uses weighted-average method of process costing.
Physical
Units
(watches)
Direct
Conversion
Costs
Materials
Beg. WIP (May 1, 2020)*a
80
P 493,360 P 91,040
Started in May 2020
500
Completed during May 2020
460
Ending WIP (May 31, 2020)*b
120
Total cost added during May 2020
3,220,000
1,392,000
Additional information:
*a Degree of completion: direct materials, 90%; conversion costs, 40%
*b Degree of completion: direct materials, 60%; conversion costs, 30%
Required:
1. Compute for the equivalent units for direct materials and conversion costs. Show
physical units in the first column of your schedule.
2. Summarize total costs to account for, calculate cost per equivalent unit for direct
materials and conversion cost, and assign total costs to units completed (and
transferred out) and to units in ending WIP.
Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
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.
