Required: 1-a. Calculate the equivalent units of production. 1-b. Calculate the cost per equivalent unit. Note: Round your answers to 2 decimal places. 1-c. How much cost should have been assigned to the ending work in process inventory? Note: Round your intermediate calculations to 2 decimal places. 1-d. How much cost should have been assigned to the units completed and transferred to finished goods? Note: Round your intermediate calculations to 2 decimal places. 1-a. Equivalent units of production 1-b. Cost per equivalent unit 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out Transferred In Costs Materials Conversion $ $ Total 0 0
Required: 1-a. Calculate the equivalent units of production. 1-b. Calculate the cost per equivalent unit. Note: Round your answers to 2 decimal places. 1-c. How much cost should have been assigned to the ending work in process inventory? Note: Round your intermediate calculations to 2 decimal places. 1-d. How much cost should have been assigned to the units completed and transferred to finished goods? Note: Round your intermediate calculations to 2 decimal places. 1-a. Equivalent units of production 1-b. Cost per equivalent unit 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out Transferred In Costs Materials Conversion $ $ Total 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Topic Video
Question
Please provide all correct answers?!
Transcribed Image Text:**Required:**
1-a. Calculate the equivalent units of production.
1-b. Calculate the cost per equivalent unit.
*Note: Round your answers to 2 decimal places.*
1-c. How much cost should have been assigned to the ending work in process inventory?
*Note: Round your intermediate calculations to 2 decimal places.*
1-d. How much cost should have been assigned to the units completed and transferred to finished goods?
*Note: Round your intermediate calculations to 2 decimal places.*
**Table:**
| | Transferred In Costs | Materials | Conversion | Total |
|----------------------------------|----------------------|-----------|------------|-------|
| 1-a. Equivalent units of production | | | | |
| 1-b. Cost per equivalent unit | | | | |
| 1-c. Cost of ending work in process inventory | | | | $0 |
| 1-d. Cost of units completed and transferred out | | | | $0 |
![**Case 4-19 (Algo) Second Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4]**
Ruth Scarpino, president of Provost Industries, expressed concerns:
"I think we goofed by hiring the new assistant controller. Just look at this report he prepared for last month for the Finishing Department. I can't understand it."
**Finishing Department Costs:**
- **Work in process inventory, April 1:**
- Units: 1,200
- Materials: 100% complete
- Conversion: 88% complete
- Cost: $8,663*
- **Costs transferred in during the month from the preceding department:**
- Units: 2,700
- Cost: $30,295
- **Materials cost added during the month:** $12,465
- **Conversion costs incurred during the month:** $26,490
- **Total departmental costs:** $77,913
**Finishing Department Costs Assigned To:**
- **Units completed and transferred to finished goods:**
- Units: 3,300
- Unit Cost: $23.61 per unit
- **Work in process inventory, April 30:**
- Units: 600
- Materials: 0% complete
- Conversion: 50% complete
- **Total departmental costs assigned:** $77,913
*Consists of cost transferred in ($4,298), materials cost ($2,055), and conversion cost ($2,310).
**Discussion:**
Harrop, the operations manager, explained the struggle of the new assistant controller with the system, noting a delay in adapting back to the process costing.
Scarpino questioned the high unit cost for April, set at $23.610.
Harrop suggested a report review might reveal material price increases in April as a possible explanation.
**Company Details:**
Provost Industries manufactures ceramic products through Molding and Finishing departments using the weighted-average method for process costing.
**Required Tasks:**
1-a. Calculate the equivalent units of production.
1-b. Calculate the cost per equivalent unit.
- **Note:** Round answers to 2 decimal places.
1-c. Determine the cost assigned to the ending work in process inventory.
- **Note:** Round intermediate calculations to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9737efd-391f-457a-98f6-aa044a0527f1%2Ff044c0b2-48ab-4140-a865-42b91d1f1b1e%2F12aou5l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Case 4-19 (Algo) Second Department-Weighted-Average Method [LO4-2, LO4-3, LO4-4]**
Ruth Scarpino, president of Provost Industries, expressed concerns:
"I think we goofed by hiring the new assistant controller. Just look at this report he prepared for last month for the Finishing Department. I can't understand it."
**Finishing Department Costs:**
- **Work in process inventory, April 1:**
- Units: 1,200
- Materials: 100% complete
- Conversion: 88% complete
- Cost: $8,663*
- **Costs transferred in during the month from the preceding department:**
- Units: 2,700
- Cost: $30,295
- **Materials cost added during the month:** $12,465
- **Conversion costs incurred during the month:** $26,490
- **Total departmental costs:** $77,913
**Finishing Department Costs Assigned To:**
- **Units completed and transferred to finished goods:**
- Units: 3,300
- Unit Cost: $23.61 per unit
- **Work in process inventory, April 30:**
- Units: 600
- Materials: 0% complete
- Conversion: 50% complete
- **Total departmental costs assigned:** $77,913
*Consists of cost transferred in ($4,298), materials cost ($2,055), and conversion cost ($2,310).
**Discussion:**
Harrop, the operations manager, explained the struggle of the new assistant controller with the system, noting a delay in adapting back to the process costing.
Scarpino questioned the high unit cost for April, set at $23.610.
Harrop suggested a report review might reveal material price increases in April as a possible explanation.
**Company Details:**
Provost Industries manufactures ceramic products through Molding and Finishing departments using the weighted-average method for process costing.
**Required Tasks:**
1-a. Calculate the equivalent units of production.
1-b. Calculate the cost per equivalent unit.
- **Note:** Round answers to 2 decimal places.
1-c. Determine the cost assigned to the ending work in process inventory.
- **Note:** Round intermediate calculations to 2 decimal places.
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