Tony manufactures a product that goes through two departments prior to completion: the Mixing Department followed by the Packaging Department. The following information is available about work in the Mixing Department during June. Percent Completed Units Materials Conversion Work in process, beginning 74,000 70% 40% Started in production 367,000 Completed and transferred out 357,000 Work in process, ending 84,000 75% 25% Materials Conversion Work in process, beginning $28,000 $9,800 $299,600 $209,440 Cost added during June Assume that the company uses the weighted-average method. 1. Determine the equivalent units of production for June for the Mixing Department. Materials Conversion Equivalent units of production 2. Compute the cost per equivalent unit for June for the Mixing Department. Cost per equivalent unit Materials Conversion 3.Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. Cost of ending work in process inventory Cost of units completed and transferred out 4. Prepare a cost reconciliation report for the Mixing Department for June Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory Cost of units completed and transferred out Total costs accounted for
Tony manufactures a product that goes through two departments prior to completion: the Mixing Department followed by the Packaging Department. The following information is available about work in the Mixing Department during June. Percent Completed Units Materials Conversion Work in process, beginning 74,000 70% 40% Started in production 367,000 Completed and transferred out 357,000 Work in process, ending 84,000 75% 25% Materials Conversion Work in process, beginning $28,000 $9,800 $299,600 $209,440 Cost added during June Assume that the company uses the weighted-average method. 1. Determine the equivalent units of production for June for the Mixing Department. Materials Conversion Equivalent units of production 2. Compute the cost per equivalent unit for June for the Mixing Department. Cost per equivalent unit Materials Conversion 3.Determine the total cost of ending work in process inventory and the total cost of units transferred to the Packaging Department. Cost of ending work in process inventory Cost of units completed and transferred out 4. Prepare a cost reconciliation report for the Mixing Department for June Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory Cost of units completed and transferred out Total costs accounted for
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Tony manufactures a product that goes through two departments prior to
completion: the Mixing Department followed by the Packaging Department. The
following information is available about work in the Mixing Department during June.
Percent Completed
Units
Materials Conversion
Work in process, beginning
74,000
70%
40%
Started in production
367,000
Completed and transferred out 357,000
Work in process, ending
84,000
75%
25%
Materials Conversion
Work in process, beginning
$28,000
$9,800
$299,600 $209,440
Cost added during June
Assume that the company uses the weighted-average method.
1. Determine the equivalent units of production for June for the Mixing Department.
Materials Conversion
Equivalent units of production
2. Compute the cost per equivalent unit for June for the Mixing Department.
Cost per equivalent unit
Materials Conversion
3.Determine the total cost of ending work in process inventory and the total cost of
units transferred to the Packaging Department.
Cost of ending work in process inventory
Cost of units completed and transferred out
4. Prepare a cost reconciliation report for the Mixing Department for June
Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period
Total cost to be accounted for
Costs accounted for as follows:
Cost of ending work in process inventory
Cost of units completed and transferred out
Total costs accounted for
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