Smart Toys Corporation makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. Smart Toys uses the weighted-average method of process costing. The following information for October 2017 is available. the icon to view the cost information.) Read the requirements3. Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs (1) (2) Total costs to account for Now calculate cost per equivalent unit for direct materials and conversion costs. (Round the cost per equivalent unit amounts to the nearest cent.) Direct Conversion Materials Costs (3) Divide by (4) Cost per equivalent unit Requirement 2. Assign total costs to units completed (and transferred out) and to units in ending work in process. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for 1: Data Table Equivalent Units Physical Direct Conversion Units Materials Costs Work in process, October 1 45,000a 45,000 36,000 Started in October 30,000 Completed and transferred out during October 50,000 50,000 50,000 Work in process, October 31 25,000b 25,000 12,500 aDegree of completion: direct materials, 100%; conversion costs, 80%. bDegree of completion: direct materials, 100%; conversion costs, 50%. 2: Data Table Total Costs for October 2017 Work in process, beginning Direct materials $9,000 Conversion costs 40,000 $49,000 Direct materials added during October 60,000 Conversion costs added during October 80,000 Total costs to account for $189,000 3: Requirements 1. Calculate cost per equivalent unit for direct materials and conversion costs. 2. Summarize the total costs to account for, and assign them to units completed (and transferred out) and to units in ending work in process.

Smart Toys Corporation makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. Smart Toys uses the weighted-average method of process costing. The following information for October 2017 is available. the icon to view the cost information.) Read the requirements3. Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs (1) (2) Total costs to account for Now calculate cost per equivalent unit for direct materials and conversion costs. (Round the cost per equivalent unit amounts to the nearest cent.) Direct Conversion Materials Costs (3) Divide by (4) Cost per equivalent unit Requirement 2. Assign total costs to units completed (and transferred out) and to units in ending work in process. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for 1: Data Table Equivalent Units Physical Direct Conversion Units Materials Costs Work in process, October 1 45,000a 45,000 36,000 Started in October 30,000 Completed and transferred out during October 50,000 50,000 50,000 Work in process, October 31 25,000b 25,000 12,500 aDegree of completion: direct materials, 100%; conversion costs, 80%. bDegree of completion: direct materials, 100%; conversion costs, 50%. 2: Data Table Total Costs for October 2017 Work in process, beginning Direct materials $9,000 Conversion costs 40,000 $49,000 Direct materials added during October 60,000 Conversion costs added during October 80,000 Total costs to account for $189,000 3: Requirements 1. Calculate cost per equivalent unit for direct materials and conversion costs. 2. Summarize the total costs to account for, and assign them to units completed (and transferred out) and to units in ending work in process.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Smart Toys uses the weighted-average method of process costing. The following information for October 2017

is available.

the icon to view the cost information.)

Read the requirements3.

Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs.

Begin by summarizing the total costs to account for.

	Total	Direct	Conversion
	Production Costs	Materials	Costs
(1)
(2)
Total costs to account for

Now calculate cost per equivalent unit for direct materials and conversion costs. (Round the cost per equivalent unit amounts to the nearest cent.)

		Direct	Conversion
		Materials	Costs
(3)
Divide by	(4)
Cost per equivalent unit

Requirement 2. Assign total costs to units completed (and transferred out) and to units in ending work in process.

	Total	Direct	Conversion
	Production Costs	Materials	Costs
Completed and transferred out
Work in process, ending
Total costs accounted for

1: Data Table

	Equivalent Units
Physical	Direct	Conversion
Units	Materials	Costs

Work in process, October 1	45,000a	45,000	36,000
Started in October	30,000
Completed and transferred out during October	50,000	50,000	50,000
Work in process, October 31	25,000b	25,000	12,500

aDegree of completion: direct materials, 100%; conversion costs, 80%.

bDegree of completion: direct materials, 100%; conversion costs, 50%.

2: Data Table

Total Costs for October 2017
Work in process, beginning
Direct materials	$9,000
Conversion costs	40,000	$49,000
Direct materials added during October		60,000
Conversion costs added during October		80,000
Total costs to account for		$189,000

3: Requirements

1.	Calculate cost per equivalent unit for direct materials and conversion costs.
2.	Summarize the total costs to account for, and assign them to units completed (and transferred out) and to units in ending work in process.

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