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 900 units into production and completed 1,000 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: Direct MaterialsConversion CostsBeginning work-in-process $ 3,712Costs added in October$ 9,9006,400Total costs$ 9,900$ 10,112Calculate each of the following amounts using weighted-average process costing using FIFO method Production Quantity InformationStep 1: AnalyzeFlow of PhysicalUnitsStep 2:CalculateEquivalentUnitsConversionCostsDirectPhysical UnitsMaterialsInputBeginning work-in-process inventory300Completion percentageDirect materials, 0%Conversion, 50%Started this periodTotal units to account for300OutputCompletedEnding work-in-process inventoryCompletion percentageDirect materials, 100%Conversion, 70%Total units accounted forTotal work performed to dateBeginning work-in-process inventoryTotal work performed this period (FIFO equivalent units)Unit Cost DeterminationConversionCostsStep 3: Determine Total Costs to Account for FlowDirect MaterialsTotalBeginning work-in-process inventoryCurrent costTotal costs to account forStep 4: Compute Unit CostsCost per equivalent unitCost AssignmentCompleted andTransferred OutEnding Work-in-ProcessStep 5: Assign Total Manufacturing CostsTotalUnits completed and transferred outBeginning work-in-processCurrent cost to completeMaterialsConversionTotal from beginning work-in-processUnits started and finishedTotal cost completed and transferred outEnding work-in-processMaterialsConversionTotal costs accounted for Repeat requirement 1 using the FIFO method. (Round "Cost per equivalent unit" answers to 2 decimal places.)DirectConversionMaterialsa. Equivalent unitsb. Equivalent unit costsC.Cost of goods completed and transferred outd.Cost of work-in-process

Process Costing Process costing is the technique used in the assignment of costs to the units which…

Answered: Smith Electronic Company’s…

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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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 900 units into production and completed 1,000 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: