Q.2 Amsterdam Corporation produces medical grade isotopes. The isotopes are produced in a single continuous process and Amsterdam uses the weighted average process costing method of accounting for production The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production. Amsterdam Corporation prepared the following "unit reconciliation for the month of April: UNIT RECONCILIATION Beginning Work in Process Started into Production Total Units into Production To Finished Goods Ending Work in Process Total Units Reconciled QUANTITY SCHEDULE 7,500 9.000 16,500 12,000 4.500 16.500 EQUIVALENT UNITS CALCULATIONS: CONVERSION DIRECT MATERIALS 12,000 3,150 15,150 DIRECT LABOR 12,000 2,250 14,250 FACTORY OVERHEAD 12,000 2,250 14,250 Ending WP Completion Status: Materials = 70% Conversion -50% The above beginning work in process inventory had an assigned cost of $4,500,000, divided between direct materials (50%), direct labor (30%), and factory overhead (20%). Additional costs incurred during April were $15,000,000, divided between direct materials (15%), direct labor (20%), and factory overhead (65%). Prepare a schedule showing the calculation of cost per equivalent unit.
Q.2 Amsterdam Corporation produces medical grade isotopes. The isotopes are produced in a single continuous process and Amsterdam uses the weighted average process costing method of accounting for production The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production. Amsterdam Corporation prepared the following "unit reconciliation for the month of April: UNIT RECONCILIATION Beginning Work in Process Started into Production Total Units into Production To Finished Goods Ending Work in Process Total Units Reconciled QUANTITY SCHEDULE 7,500 9.000 16,500 12,000 4.500 16.500 EQUIVALENT UNITS CALCULATIONS: CONVERSION DIRECT MATERIALS 12,000 3,150 15,150 DIRECT LABOR 12,000 2,250 14,250 FACTORY OVERHEAD 12,000 2,250 14,250 Ending WP Completion Status: Materials = 70% Conversion -50% The above beginning work in process inventory had an assigned cost of $4,500,000, divided between direct materials (50%), direct labor (30%), and factory overhead (20%). Additional costs incurred during April were $15,000,000, divided between direct materials (15%), direct labor (20%), and factory overhead (65%). Prepare a schedule showing the calculation of cost per equivalent unit.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Q.2
Amsterdam Corporation produces medical grade isotopes. The isotopes are produced in a single
continuous process and Amsterdam uses the weighted-average process costing method of accounting
for production.
The production process requires constant utilization of facilities and equipment, as well as direct labor
by skilled technicians. As a result, direct labor and factory overhead are both deemed to be introduced
uniformly throughout production.
Amsterdam Corporation prepared the following "unit reconciliation for the month of April:
UNIT RECONCILIATION
Beginning Work in Process
Started into Production
Total Units into Production
To Finished Goods
Ending Work in Process
Total Units Reconciled
QUANTITY
SCHEDULE
7,500
2.000
16,500
12,000
4.500
16.500
EQUIVALENT UNITS CALCULATIONS:
CONVERSION
DIRECT
MATERIALS
12,000
3,150
15,150
DIRECT LABOR
12,000
2,250
14,250
FACTORY
OVERHEAD
12,000
2.250
14,250
Ending WP Completion Status:
Materials = 70%
Conversion -50%
The above beginning work in process inventory had an assigned cost of $4,500,000, divided between
direct materials (50%), direct labor (30%), and factory overhead (20%).
Additional costs incurred during April were $15,000,000, divided between direct materials (15%), direct
labor (20%), and factory overhead (65%).
Prepare a schedule showing the calculation of cost per equivalent unit.
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