Question 6 Coco Company manufactures bicycle frames in two departments:cutting and welding. Coco uses the weighted average method. Manufacturing costs are added uniformly throughout process. The following are cost and production data for the cutting department for October: Production: Units in process, October 1, 40% complete Units completed and transferred out Units in process, October 31, 60% complete Costs: 4,000 27,200 8,000 Work in process, October 1 Cost added during October RM32,000 RM608,000 Required: Prepare a production report for the cutting department. Question 7 Gorgeous Company had the following production and cost information for it fabrication department during April (with materials added at the beginning of the fabrication process). Production: Units in process, April 1, 50% complete with respect to conversion Units completed Units in process, April 30, 60% complete 10,000 65,200 12,000 RM Costs: Work in process, April 1 Materials 40,980 Conversion costs 28,920 69,900 Total Current costs: Materials 125,000 Conversion costs 210,000 335,000 Total Gorgeous uses the weighted average method. Required: a) Prepare an equivalent units schedule. b) Calculate the unit cost. (Note: Round answers to two decimal places) c) Calculate the cost of units transferred out and the cost of EWIP.
Question 6 Coco Company manufactures bicycle frames in two departments:cutting and welding. Coco uses the weighted average method. Manufacturing costs are added uniformly throughout process. The following are cost and production data for the cutting department for October: Production: Units in process, October 1, 40% complete Units completed and transferred out Units in process, October 31, 60% complete Costs: 4,000 27,200 8,000 Work in process, October 1 Cost added during October RM32,000 RM608,000 Required: Prepare a production report for the cutting department. Question 7 Gorgeous Company had the following production and cost information for it fabrication department during April (with materials added at the beginning of the fabrication process). Production: Units in process, April 1, 50% complete with respect to conversion Units completed Units in process, April 30, 60% complete 10,000 65,200 12,000 RM Costs: Work in process, April 1 Materials 40,980 Conversion costs 28,920 69,900 Total Current costs: Materials 125,000 Conversion costs 210,000 335,000 Total Gorgeous uses the weighted average method. Required: a) Prepare an equivalent units schedule. b) Calculate the unit cost. (Note: Round answers to two decimal places) c) Calculate the cost of units transferred out and the cost of EWIP.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Question 6
Coco Company manufactures bicycle frames in two departments:cutting and welding.
Coco uses the weighted average method. Manufacturing costs are added uniformly
throughout process. The following are cost and production data for the cutting department
for October:
Production:
Units in process, October 1, 40% complete
Units completed and transferred out
Units in process, October 31, 60% complete
4,000
27,200
8,000
Costs:
Work in process, October 1
Cost added during October
RM32,000
RM608,000
Required:
Prepare a production report for the cutting department.
Question 7
Gorgeous Company had the following production and cost information for it fabrication
department during April (with materials added at the beginning of the fabrication process).
Production:
Units in process, April 1, 50% complete with respect to conversion
Units completed
Units in process, April 30, 60% complete
Costs:
10,000
65,200
12,000
RM
Work in process, April 1
Materials
40,980
Conversion costs
28,920
69,900
Total
Current costs:
Materials
125,000
Conversion costs
210,000
335,000
Total
Gorgeous uses the weighted average method.
Required:
a) Prepare an equivalent units schedule.
b) Calculate the unit cost. (Note: Round answers to two decimal places)
c) Calculate the cost of units transferred out and the cost of EWIP.
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