In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To calculate the number of units transferred to Finished Goods

Question

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Answer 1

Question

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

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Students have asked these similar questions

Accurate Value Hardware began in 2019 with a credit balance of $87,000in the allowance for sales returns account. Sales and cash collections from customers during the year were $963,000 and $715,000, respectively. Accurate Value estimates that 7.5% of all sales will be returned. In 2019, customers returned merchandise for a credit of $36,000 to their accounts. Accurate Value's 2019 income statement would report net sales of__.

The financial statements of Sunland Manufacturing Company report net sales of $1277500 and accounts receivable of $71000 and $69000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

Accounting answer

Answer 2

Question

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

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Answer 3

Question

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

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Answer 4

Question

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

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Answer 5

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

Answer 6

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

Answer 7

Chapter 20, Problem 6APSA

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Answer 8

Expert Solution

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Answer 13

Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

Answer 14

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

Answer 15

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Answer 16

Expert Solution

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Answer 21

Conclusion

Conclusion:

	Direct Material	Conversion
Number of Equivalent units on FIFO basis during May	195750	182750

Answer 22

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

Answer 23

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Answer 24

Expert Solution

Answer to Problem 6APSA

Solution:

	Direct Material	Conversion
Cost per Equivalent units on FIFO basis during May	2.58	2.17

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Answer 29

Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

Answer 30

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

Answer 31

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Answer 32

Expert Solution

Answer to Problem 6APSA

Solution:

	Cost Assigned to FG	Cost Assigned to WIP
Cost Assigned in May	902593	101578

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
		DIRECT MATERIAL
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST $

OPENING BALANCE	37,500	60%	22,500	74,075

COST INCURRED DURING THE MONTH				505,035
				579,110
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	40%	15,000
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
CLOSING WORK IN PROGRESS	51,250	60%	30,750
			195,750

Per Unit cost of Equivalent units				2.58

COST OF OPENING UNITS			15,000	112,775.00
COST OF UNITS COMPLETED AND TRANSFERRED				387,000
COST OF WORK IN PROGRESS				79,335
TOTAL				579,110


		CONVERSION COST			TOTAL MATERIAL AND CONVERSION
DETAILS	NO OF UNITS	% COMPLETE	EQUIVALENT UNIT	COST	TOTAL MATERIAL AND CONVERSION

OPENING BALANCE	37,500	40%	15,000	28,493	102,568

COST INCURRED DURING THE MONTH				396,568	901,603
				425,061	1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED	37,500	60%	22,500
UNITS COMPLETED AND TRANSFERRED	150,000	100%	150,000
WORK IN PROGRESS	51,250	20%	10,250
			182,750

Per Unit cost of Equivalent units			=396568/182750	2.17

OPENING UNITS COMPLETED AND TRANSFERRED				77,318	190,093
COST OF UNITS COMPLETED AND TARNSFERRED				325,500	712,500
COST OF WORK IN PROGRESS				22,243	101,578
TOTAL				425,061	1,004,171

Answer 37

Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

	Direct Material	Conversion	Total
Units completed and Transferred	499775	402818	902593
Work In Progress	79335	22243	101578

Answer 38

Ch. 20 - Prob. 1DQ Ch. 20 - Prob. 2DQ Ch. 20 - Prob. 3DQ Ch. 20 - Prob. 4DQ Ch. 20 - Prob. 5DQ Ch. 20 - Prob. 6DQ Ch. 20 - Prob. 7DQ Ch. 20 - Prob. 8DQ Ch. 20 - Prob. 9DQ Ch. 20 - Prob. 10DQ

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To calculate the number of units transferred to Finished Goods

Concept explainers

Videos

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Answer to Problem 6APSA

Explanation of Solution

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Answer to Problem 6APSA

Explanation of Solution

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Answer to Problem 6APSA

Explanation of Solution

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Answer to Problem 6APSA

Explanation of Solution

Want to see more full solutions like this?

Chapter 20 Solutions

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To calculate the number of units transferred to Finished Goods

Concept explainers

Videos

Introduction: In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To calculate the number of units transferred to Finished Goods

Answer to Problem 6APSA

Explanation of Solution

Introduction: In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Answer to Problem 6APSA

Explanation of Solution

Introduction: In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Answer to Problem 6APSA

Explanation of Solution

Introduction: In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost. To Calculate: To Assign cost to Units transferred to FG and to ending WIP.

Answer to Problem 6APSA

Explanation of Solution

Want to see more full solutions like this?

Chapter 20 Solutions

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.