The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating Materials are Introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied. Selected data relating to the Weaving Department during May are given below. Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete) Kilograns started into production during May Kilograms completed and transferred to Coating Kilograms in process, May 31 (materials 65% complete; conversion 30% complete) Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. Cost per equivalent unit Materials 507 400 Equivalent units of production 2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places) Materials Conversion Conversion 484 300 Cost of ending work in process inventory Materials Conversion 3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar) S S 106,500 424,000 Total 66,000 $ 10,900 $123,540 $715,678 $457,629 4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar) Cost Reconciliation Costs to be accounted for Cost of beginning work in process inventory Costs added to production during the period Total cost Costs accounted for as follows Transferred to the Coating Department Work in process, May 31 Materials Conversion Total ending Work in process Total cost S $ 0 0 0
The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating Materials are Introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into the Coating Department, where specialty plastic coating is applied. Selected data relating to the Weaving Department during May are given below. Production data: Kilograms in process, May 1 (materials 100% complete; conversion 80% complete) Kilograns started into production during May Kilograms completed and transferred to Coating Kilograms in process, May 31 (materials 65% complete; conversion 30% complete) Cost data: Work in process inventory, May 1: Materials cost Conversion cost Cost added during May: Materials cost Conversion cost The company uses the weighted-average method. Required: 1. Compute the equivalent units of production. Cost per equivalent unit Materials 507 400 Equivalent units of production 2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places) Materials Conversion Conversion 484 300 Cost of ending work in process inventory Materials Conversion 3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar) S S 106,500 424,000 Total 66,000 $ 10,900 $123,540 $715,678 $457,629 4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar) Cost Reconciliation Costs to be accounted for Cost of beginning work in process inventory Costs added to production during the period Total cost Costs accounted for as follows Transferred to the Coating Department Work in process, May 31 Materials Conversion Total ending Work in process Total cost S $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:The WireOne Company manufactures high-quality coated electrical wire in two departments, Weaving and Coating Materials are
Introduced at various points during work in the Weaving Department. After the weaving is completed, the materials are transferred into
the Coating Department, where specialty plastic coating is applied.
Selected data relating to the Weaving Department during May are given below:
Production data:
Kilograms in process, May 1 (materials 100% complete; conversion 80% complete).
Kilograms started into production during May
Kilograms completed and transferred to Coating
Kilograms in process, May 31 (materials 65% complete; conversion 30% complete)
Cost data:
Work in process inventory, May 1:
Materials cost
Conversion cost
Cost added during May:
Materials cost
Conversion cost
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
Materials
Materials
507 400
Equivalent units of production
2. Compute the costs per equivalent unit for May. (Round your answers to 2 decimal places.)
Cost of ending work in process inventory
Cost of units completed and transferred out
Conversion
484,300
Conversion
Materials
Conversion
Cost per equivalent unit
3. Determine the cost of ending work in process inventory and of the units transferred to the Coating Department. (Round
intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar.)
$
D
$
Total
0
106,500
424,000
7
66,000
0
$ 80,940
$123,540
$715,678
$457,620
4. Prepare a cost reconciliation between the costs determined in (3) above and the cost of beginning inventory and costs added
during the period. (Round intermediate calculations to 2 decimal places, and final answers to the nearest whole dollar)
Cost Reconciliation
Costs to be accounted for
Cost of beginning work in process inventory
Costs added to production during the period
Total cost
Costs accounted for as follows:
Transferred to the Coating Department
Work in process, May 31
Materials
Conversion
Total ending Work in process
Total cost
$
$
0
0
0
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