Wildhorse Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior brand. Wildhorse produces the paint in its mixing department and then transfers the paint to the canning department. The following information is presented for the canning department in March, recognizing that the company adds its conversion costs evenly throughout the process. One unit is one gallon of paint. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 1,300 41,800 42,200 900 Transferred-In 100% DM 100% $13,440 $2,020 100% $401,280 $44,990 0% Conversion Costs 60% $1,720 $83,380 30%
Wildhorse Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior brand. Wildhorse produces the paint in its mixing department and then transfers the paint to the canning department. The following information is presented for the canning department in March, recognizing that the company adds its conversion costs evenly throughout the process. One unit is one gallon of paint. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 1,300 41,800 42,200 900 Transferred-In 100% DM 100% $13,440 $2,020 100% $401,280 $44,990 0% Conversion Costs 60% $1,720 $83,380 30%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Paints makes various interior and exterior paints for its customers, but its current focus is on its top-selling interior
brand. Wildhorse produces the paint in its mixing department and then transfers the paint to the canning department. The
following information is presented for the canning department in March, recognizing that the company adds its conversion costs
evenly throughout the process. One unit is one gallon of paint.
Units in beginning WIP Inventory
Beginning WIP Inventory degree of completion
Costs in beginning WIP Inventory
New units started
Costs added to WIP Inventory this period
Units completed
Units in ending WIP Inventory
Ending WIP Inventory degree of completion
Units
1,300
41,800
42,200
900
Transferred-In
100%
DM
100%
$13,440 $2,020
100%
$401,280 $44,990
0%
Conversion Costs
60%
$1,720
$83,380
30%
Transcribed Image Text:Complete Steps 1-5 of the template for the canning department of Wildhorse Paints this year using the FIFO method of
process costing, clearly labeling the following. (Round cost per equivalent unit answers to 2 decimal places, e.g. 15.25.)
●
●
●
Equivalent units of production for all three cost categories: transferred-in, DM, and conversion costs.
The cost per equivalent unit for all three cost categories: transferred-in, 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
Transferred-in
Cost of units in ending WIP Inventory
tA
$
41800
||
DM
40900
Conversion Cost
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