Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department). WIP inventory-Finishing Beginning inventory (11,100 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) Finishing conversion costs Current work (100,200 units started) Mixing costs Finishing costs The ending inventory has 15,100 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs. Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for: Required: Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.) Completed and transferred out Units in ending inventory Mixing Finishing Total units accounted for Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Mixing Finishing Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for Physical Units $ $ 11,100 100,200 111,300 15,100 15,100 Total Mixing Department Mixing Department 0 $ 0 $ Equivalent Units $ 132,150 3,022 0 991,980 517,803 Finishing Department 0 $ Finishing Department 0 $ 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Please Provide Formulas To Understand.

Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the
following information for Finishing operations for February (no new material is added in the Finishing Department).
WIP inventory-Finishing
Beginning inventory (11,100 units, 20% complete with respect to
Finishing costs)
Transferred-in costs (from Mixing)
Finishing conversion costs
Current work (100,200 units started)
Mixing costs
Finishing costs
The ending inventory has 15,100 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent
complete for Mixing Department costs.
Flow of units:
Units to be accounted for:
Beginning WIP inventory
Units started this period
Total units to account for
Units accounted for:
Required:
Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)
Completed and transferred out
Units in ending inventory
Mixing
Finishing
Total units accounted for
Flow of costs:
Costs to be accounted for:
Costs in beginning WIP inventory
Current period costs
Total costs to be accounted for
Cost per equivalent unit
Mixing
Finishing
Costs accounted for:
Costs assigned to units transferred out
Costs of ending WIP inventory
Total costs accounted for
Physical Units
$
$
11,100
100,200
111,300
15,100
15,100
Total
Mixing
Department
Mixing
Department
0 $
0 $
Equivalent Units
$ 132,150
3,022
0
991,980
517,803
Finishing
Department
0 $
Finishing
Department
0 $
0
0
0

Expert Solution

Step 1: Introduction:

WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding equivalent units transferred out and equivalent units in ending WIP.

Equivalent units transferred out calculated by multiplying units transferred out with 100%.

Equivalent units in ending WIP is calculated by multiplying units in ending WIP with their stage of completion

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions