Question 3: Process CostingCannondale Bicycle Company manufactures various lines of bicycles. Because of the highvolume of each type of product, the company employs a process cost system to determineunit costs. Bicycle parts are manufactured in the Moulding Department and transferred tothe Assembly Department where they are assembled. After assembly, the bicycles are sentto the Packing Department. Cost and production figures for the Assembly Department arepresented below for the month of June:Production Data (in unit)70,000Beginning WIP Inventory (70% complete as to material;40% complete as to conversion)Started in JuneCompleted and transferred outEnding WIP Inventory (75% complete as to material; 25%complete as to conversion)460,000450,00080,000Cost Data (in dollar)MaterialConversion$36,550$391,850$13,500Beginning WIP InventoryCurrent period$287,300Required:(a) Determine the cost per equivalent unit for the Assembly Department's directmaterials and conversion costs, and the total unit cost for, the current period, undertheWeighted-Average methodFIFO methodi.ii.nce fo..docxSAQ Which side..docxTopic 6 Decision..pptSAQ B33°C A Cost Data (in dollar)MaterialConversionBeginning WIP InventoryCurrent period$36,550$391,850$13,500$287,300Required:(a) Determine the cost per equivalent unit for the Assembly Department's directmaterials and conversion costs, and the total unit cost for the current period, underthei.Weighted-Average methodii.FIFO method(b) Assign total costs to units completed (and transferred out) to Packaging Departrentand to units in ending work in process in the Assembly Department.nce fo..docxSAQ Which side..docxTopic 6 Decision..pptSE33°C

Equivalent units in ending WIP = Units of ending WIP * % of completion

Question 3: Process Costing Cannondale Bicycle Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system to determine unit costs. Bicycle parts are manufactured in the Moulding Department and transferred to the Assembly Department where they are assembled. After assembly, the bicycles are sent to the Packing Department. Cost and production figures for the Assembly Department are presented below for the month of June: Production Data (in unit) 70,000 Beginning WIP Inventory (70% complete as to material; 40% complete as to conversion) Started in June Completed and transferred out Ending WIP Inventory (75% complete as to material; 25% complete as to conversion) 460,000 450,000 80,000 Cost Data (in dollar) Material Conversion Beginning WIP Inventory Current period $36,550 $391,850 $13,500 $287,300 Required: (a) Determine the cost per equivalent unit for the Assembly Department's direct materials and conversion costs, and the total unit cost for, the current period, under the Weighted-Average method FIFO method i. ii.

Question 3: Process Costing Cannondale Bicycle Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system to determine unit costs. Bicycle parts are manufactured in the Moulding Department and transferred to the Assembly Department where they are assembled. After assembly, the bicycles are sent to the Packing Department. Cost and production figures for the Assembly Department are presented below for the month of June: Production Data (in unit) 70,000 Beginning WIP Inventory (70% complete as to material; 40% complete as to conversion) Started in June Completed and transferred out Ending WIP Inventory (75% complete as to material; 25% complete as to conversion) 460,000 450,000 80,000 Cost Data (in dollar) Material Conversion Beginning WIP Inventory Current period $36,550 $391,850 $13,500 $287,300 Required: (a) Determine the cost per equivalent unit for the Assembly Department's direct materials and conversion costs, and the total unit cost for, the current period, under the Weighted-Average method FIFO method i. ii.

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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