Prepare a cost reconciliation schedule.Cost reconciliation scheduleCosts accounted forTransferred out$Work in process, July 31MaterialsConversion costsTotal costs The Cutting Department of Sanderson Company has the following production and cost data for July.Production1. Transferred out 15,000 unitsEnding work in process, 5,000 units that are 60% complete as to conversion costs and 100% complete as to materials at July2.31.CostsBeginning work in process$ 0Materials70,000Labor21,600Manufacturing overhead25,200Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.Determine the equivalent units of production for materials and conversion costs.MaterialsConversion costCompute unit costs. (Round answer to 2 decimal places, e.g. 52.75.)Material cost$per unitConversion cost$per unit

Equivalent units: It is a concept of cost accounting where units that are used in the production…

Answered: The Cutting Department of Sanderson…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Peridot Company's grinding department had the following data for the month of January: Production: Units in process, January 1, 75% complete Units completed and transferred out Units in process, January 31, 45% complete Costs: Work in process, January 1 13,000 tons 39,000 tons 20,000 tons Costs added during January $6,265 $20,135 Determine the cost to be assigned to ending work-in-process (EWIP) using the weighted average method. (Note: Round the unit cost to two decimal places.) a. $4,950 Ob. $7,565 ○ c. $8,984 Od. $3,790
ABC Company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are added proportionately. The production quantity schedule for April is reproduced below: Work in process on April 1 (60% complete as to conversion costs) 1,000 Units started during April 5,000 Total units to account for 6,000 Units completed and transferred out 4,000 Work in process on April 30 (20% complete as to conversion costs) 2,000 Total units accounted for 6,000 Costs pertaining to the month of April are as follows: Beginning inventory costs: (DM, $54,600; Conversion, $35,560) $90,160 Costs incurred during April (DM, $468,000; Conversion $574,060) $1,042,060 Question #1: Using the weighted average method, the equivalent unit materials cost for April is? Question #2: Using the weighted average method, the 4,000 units completed during April will be transferred out at an EUP unit cost of?
Lazada Inc. adds materials at the beginning of the process in department USB. Conversion costs were 70% complete as to the 9,500 work-in-process units on September 1 and 40% incomplete as to the 7,000 work-in-process units on September 30. During September, 12,000 units were completed and transferred to the next department. An analysis of the cost relating to work-in-process on September 1 and to production activity for September is as follows: Work-in-process, September 1Materials P10,000Conversion Costs P12,000Costs incurred during SeptemberMaterials P45,000Conversion Costs P60,000The total cost per equivalent unit for September under FIFO is:
At Greytown Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion, and production data for its Painting Department in selected months are as follows: Beginning Work In Process Ending Work In Process Percentage Units Completed Percentage Month Units Completed and Transferred Out Units Completed July -0- — 11,000 1,500 90% Sept. 2,500 20% 9,000 5,000 70% Instructions Compute the equivalent units of production for materials and conversion costs for September.
The Cutting department of Heart Corporation in the month of March started with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 1,000 units that are 100% complete as to materials and 60% complete as to conversion costs. Instructions: Compute the equivalent units of production for materials and conversion costs for the month of March. Compute the equivalent units of production for materials and conversion costs for the month of March.
Pearl Company has the following production information for October: 60,000 units transferred out and 20,000 units in ending work in process that are 100 percent complete for materials and 60 percent complete for conversion costs. Materials cost is $12 per equivalent unit and conversion cost is $16 per equivalent unit. Determine the cost assigned to the units transferred out and the units in ending work in process using the weighted-average method.
Production information shows the following costs and units for the smoothing department in August. Cost Units Work in process Beginning balance: materials $1,550 Beginning units 640 Beginning balance: conversion 2,700 Transferred in 1,810 Materials 7,760 Transferred out 1,870 Labor 14,510 Overhead 6,890 All materials are added at the beginning of the period. The ending work in process is 10% complete as to conversion. What is the value of the inventory transferred to finished goods and the value of the WIP inventory at the end of the month?

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