MANAGERIAL ACCOUNTING W/CONNECT
15th Edition
ISBN: 9781259732454
Author: Garrison
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 4, Problem 13P
To determine
The Cost perequivalent unit for each element of cost
Expert Solution
Answer to Problem 13P
Solution: The statement showing the cost per equivalent unit for element is as under:
| Equivalent Units: | ||||||||
| Transferred in Cost | Material Cost | Conversion Cost | ||||||
| % Completion | Units | % Completion | Units | % Completion | Units | |||
| Units completed and transferred
Ending Work in Process Total Equivalent units |
100%
100% |
50.00
1.00 |
100%
80% |
50.00
0.80 |
100%
70% |
50.00
0.70 |
||
| 51 | 50.8 | 50.7 | ||||||
Explanation of Solution
The total cost of Transferred-in cost shall be the sum total of transferred in cost included in beginning work in process and added during the current period. The transferred-in cost per equivalent units shall be computed by dividing the total transferred-in cost by equivalent units of respective cost.
Requirement3:
To determine
The Cost of Ending work in process inventory in respect of material, conversion and in total
Expert Solution
Answer to Problem 13P
Solution: The statement showing the cost of ending work in process is as under:
| Ending Work in Process (1 unit)
|
Equivalent unit | Cost per EU | Total Cost | |||||
| Transferred-in cost | 1.00 | 1630 | 1630 | |||||
| Material cost | 0.80 | 120 | 96 | |||||
| Conversion Cost | 0.70 | 850 | 595 | |||||
| Total cost of Ending Work in process: | 2,321 | |||||||
Explanation of Solution
The total cost of ending work in process shall be computed by multiplying the equivalent units of each element in ending work in
Requirement4:
To determine
The Cost of goods completed and transferred out
Expert Solution
Answer to Problem 13P
Solution: The statement showing the cost of units completed and transferred out shall be as under:
| Units Completed and Transferred out (50 units)
|
Equivalent unit | Cost per EU | Total Cost | ||||
| Transferred-in cost | 50 | 1630 | 81500 | ||||
| Material cost | 50 | 120 | 6000 | ||||
| Conversion Cost | 50 | 850 | 42500 | ||||
| Total Cost of Units completed and transferred out: | 130000 | ||||||
Explanation of Solution
The total cost of units completed and transferred out shall be computed by multiplying the equivalent units of each element in units completed (which is equal to completed units only) by cost per equivalent unit of respective element. The Summation of each element cost is the total cost of ending work in process.
Requirement5:
To determine
To show: The
Expert Solution
Answer to Problem 13P
Solution: The reconciliation statement showing the cost to account for and accounted in ending work in process and completed units is as follows:
| RECONCILIATION STATEMENT | |||||||
| TOTAL COST TO ACCOUNT FOR:
|
|||||||
| Transferred-in | Material | Conversion | |||||
| Beginning work in Process | 1,670 | 90 | 605 | ||||
| Cost Added during May | 81,460 | 6,006 | 42,490 | ||||
| Total Cost to account for: | 83,130 | 6,096 | 43,095 | ||||
| Total Cost to account for: | 132,321 | ||||||
| TOTAL COST ACCOUNTED FOR:
|
|||||||
| Units Completed and Transferred out (50 units)
|
|||||||
| Equivalent unit | Cost per EU | Total Cost | |||||
| Transferred-in cost | 50 | 1630 | 81500 | ||||
| Material cost | 50 | 120 | 6000 | ||||
| Conversion Cost | 50 | 850 | 42500 | ||||
| Total Cost of Units completed and transferred out: | 130000 | ||||||
| Ending Work in Process (1 unit)
|
|||||||
| Equivalent unit | Cost per EU | Total Cost | |||||
| Transferred-in cost | 1.00 | 1630 | 1630 | ||||
| Material cost | 0.80 | 120 | 96 | ||||
| Conversion Cost | 0.70 | 850 | 595 | ||||
| Total cost of Ending Work in process: | 2,321 | ||||||
| Total Cost accounted for: | 132,321 | ||||||
| Difference (Total cost to account for-Total cost accounted) | Nil | ||||||
Explanation of Solution
The total cost to account for is the total cost of beginning work in process and cost added during the period in the process. The total cost accounted for is the cost assigned to ending work in process and units completed and transferred out.
The reconciliation means there shall be not be any difference between the total cost to account for and total accounted in the period.
Conclusion
To conclude, it must be said that the equivalent units in each inventory shall multiplied with respective cost per equivalent unit and cost of each element is added up to arrive at the total cost of ending work in process and completed units.
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Chapter 4 Solutions
MANAGERIAL ACCOUNTING W/CONNECT
Ch. 4.A - EXERCISE 4A-1 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-2 Cost per Equivalent Unit-FIFO Method...Ch. 4.A - EXERCISE 4A-3 Assigning Costs to Units-FIFO Method...Ch. 4.A - EXERCISE 4A-4 Cost Reconciliation Report-EIFO...Ch. 4.A - EXERCISE 4A-5 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-6 Equivalent Units of Production-FIFO...Ch. 4.A - EXERCISE 4A-7 Equivalent Units of Production and...Ch. 4.A -
EXERCISE 4A-8 Equivalent Units of Production—FIFO...Ch. 4.A - EXERCISE 4A-9 Equivalent Units; Equivalent Units...Ch. 4.A - PROBLEM 4A-10 Equivalent Units of Production;...
Ch. 4.A - Prob. 11PCh. 4.A - Prob. 12CCh. 4.B - Prob. 1ECh. 4.B - EXERCISE 4B-2 Step-Down Method LO4-11 Madison Park...Ch. 4.B - Prob. 3ECh. 4.B - EXERCISE 4B-4 Direct Method LO4-10 Refer to the...Ch. 4.B - Prob. 5PCh. 4.B - PROBLEM 4B-6 Step-Down Method versus Direct...Ch. 4.B - CASE 4B-7 Step-Down Method versus Direct Method...Ch. 4 - Prob. 1QCh. 4 - In what ways are job-order and process costing...Ch. 4 - Why is cost accumulation simpler in a process...Ch. 4 - How many Work in Process accounts are maintained...Ch. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 1AECh. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Prob. 10F15Ch. 4 - Prob. 11F15Ch. 4 - Prob. 12F15Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Prob. 14F15Ch. 4 - Prob. 15F15Ch. 4 - Prob. 1ECh. 4 - EXERCISE 4-2 Computation of Equivalent...Ch. 4 - Prob. 3ECh. 4 - EXERCISE 4-4 Assigning Costs to...Ch. 4 - EXERCISE 4-5 Cost Reconciliation...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 -
EXERCISE 4-9 Equivalent Units and Cost per...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - PROBLEM 4-16 Comprehensive...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19CCh. 4 - (
CASE 4-20 Ethics and the Manager, Understanding...
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