Splish Enterprises is aptly named because of its signature Item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Splish's main processing department reported the following activity and costs. Units DM Conversion Costs Units in beginning WIP Inventory 300 Beginning WIP Inventory degree of completion 100% 30% Costs in beginning WIP Inventory $245 $445 New units started 20,100 Costs added to WIP Inventory this period $5,671 $3,955 Units completed 19,400 Units in ending WIP Inventory 1,000 Ending WIP Inventory degree of completion 100% 60% All DM resources are added to Splish's processing department at the beginning of processing. Conversion costs are added evenly throughout the process. Splish uses the weighted-average method of process costing. (a) Complete Steps 1-5 of the template for Splish Enterprises this year using the weighted-average method of process costing, clearly labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.) Equivalent units of production for both DM and conversion costs. The cost per equivalent unit for both DM and conversion costs. The total cost of units completed and the total cost of units in ending WIP Inventory. Total equivalent units of work done Cost per equivalent unit Total cost of units completed $ $ Cost of units in ending WIP Inventory $ DM $ Conversion Cost
Splish Enterprises is aptly named because of its signature Item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Splish's main processing department reported the following activity and costs. Units DM Conversion Costs Units in beginning WIP Inventory 300 Beginning WIP Inventory degree of completion 100% 30% Costs in beginning WIP Inventory $245 $445 New units started 20,100 Costs added to WIP Inventory this period $5,671 $3,955 Units completed 19,400 Units in ending WIP Inventory 1,000 Ending WIP Inventory degree of completion 100% 60% All DM resources are added to Splish's processing department at the beginning of processing. Conversion costs are added evenly throughout the process. Splish uses the weighted-average method of process costing. (a) Complete Steps 1-5 of the template for Splish Enterprises this year using the weighted-average method of process costing, clearly labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.) Equivalent units of production for both DM and conversion costs. The cost per equivalent unit for both DM and conversion costs. The total cost of units completed and the total cost of units in ending WIP Inventory. Total equivalent units of work done Cost per equivalent unit Total cost of units completed $ $ Cost of units in ending WIP Inventory $ DM $ Conversion Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Splish Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years
ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had
a finely tuned operation. This year, Splish's main processing department reported the following activity and costs.
Units
DM
Conversion Costs
Units in beginning WIP Inventory
300
Beginning WIP Inventory degree of completion
100%
30%
Costs in beginning WIP Inventory
$245
$445
New units started
20,100
Costs added to WIP Inventory this period
$5,671
$3,955
Units completed
19,400
Units in ending WIP Inventory
1,000
Ending WIP Inventory degree of completion
100%
60%
All DM resources are added to Splish's processing department at the beginning of processing. Conversion costs are
added evenly throughout the process. Splish uses the weighted-average method of process costing.
(a)
Complete Steps 1-5 of the template for Splish Enterprises this year using the weighted-average method of process
costing, clearly labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.)
Equivalent units of production for both DM and conversion costs.
The cost per equivalent unit for both DM and conversion costs.
The total cost of units completed and the total cost of units in ending WIP Inventory.
DM
Total equivalent units of work done
Cost per equivalent unit
Total cost of units completed
Cost of units in ending WIP Inventory
$
Conversion Cost
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