Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 800 units into production and completed 900 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Beginning work-in-process Costs added in October Total costs Direct Conversion Materials Costs $8,700 $ 8,700 Required: 1. Calculate each of the following amounts using weighted-average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion. Required 1 Required 2 $ 3,125 6,000 $ 9,125 c. Cost of goods completed and transferred out during the period. d. Cost of Work-in-Process Inventory at the end of the period. 2. Repeat requirement 1 using the FIFO method. Complete this question by entering your answers in the tabs below. a. Equivalent units b. Equivalent unit costs c. Cost of goods completed and transferred out d. Cost of work-in-process Repeat requirement 1 using the FIFO method. (Round "Cost per equivalent unit" answers to 2 decimal places.) Direct Materials Conversion
Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 800 units into production and completed 900 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process. Following is a summary of production costs incurred during October: Beginning work-in-process Costs added in October Total costs Direct Conversion Materials Costs $8,700 $ 8,700 Required: 1. Calculate each of the following amounts using weighted-average process costing: a. Equivalent units of direct materials and conversion. b. Equivalent unit costs of direct materials and conversion. Required 1 Required 2 $ 3,125 6,000 $ 9,125 c. Cost of goods completed and transferred out during the period. d. Cost of Work-in-Process Inventory at the end of the period. 2. Repeat requirement 1 using the FIFO method. Complete this question by entering your answers in the tabs below. a. Equivalent units b. Equivalent unit costs c. Cost of goods completed and transferred out d. Cost of work-in-process Repeat requirement 1 using the FIFO method. (Round "Cost per equivalent unit" answers to 2 decimal places.) Direct Materials Conversion
Chapter1: Financial Statements And Business Decisions
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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:Smith Electronic Company's chip-mounting production department had 300 units of unfinished product, each 50% completed on
September 30. During October of the same year, this department put another 800 units into production and completed 900 units and
transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were
recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50%
complete. Direct labor and factory overhead (i.e., conversion) costs are added uniformly throughout the process.
Following is a summary of production costs incurred during October:
Beginning work-in-process
Costs added in October
Total costs
Direct
Materials
Required 1 Required 2
$8,700
$8,700
Conversion
Costs
Required:
1. Calculate each of the following amounts using weighted-average process costing:
a. Equivalent units of direct materials and conversion.
b. Equivalent unit costs of direct materials and conversion.
c. Cost of goods completed and transferred out during the period.
d. Cost of Work-in-Process Inventory at the end of the period.
2. Repeat requirement 1 using the FIFO method.
a. Equivalent units
b. Equivalent unit costs
c. Cost of goods completed and transferred out
d. Cost of work-in-process
$ 3,125
6,000
$9,125
mplete this question by entering your answers in the tabs below.
Repeat requirement 1 using the FIFO method. (Round "Cost per equivalent unit" answers to 2 decimal places.)
Direct
Materials
Conversion
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