Explanation Given: Following information are given; Number of units completed and transferred out = 34500 units Ending work in process inventory for materials = 8000 units Ending work in process inventory for conversion = 3200 units Cost per equivalent unit for materials = $3.20 Cost per equivalent unit for conversion = $2.427 or $2.48 Formula used: Following formula will be used for calculating total cost accounted for; Total cost accounted for = (Cost of ending work in process + Cost of units completed and transferred out) Calculation: As per formula it is clear that first of all we should calculate cost of ending work in process and cost of units completed & transferred out. Cost of ending work in process will be calculated as follow; Cost of ending work in process inventory for materials = ($3 .20 &*#x00A0;8000) = $25600 Cost of ending work in process inventory for conversion = ($2 .427 &*#x00A0;3200) = $7766 .40 Note: When we multiply 3200 units with $2 .43 then answer may be different, So i multiply 3200 units by $2 .427 Thus cost of ending work in process = ( $25600 + $7766

17th Edition

ISBN: 9781260709568

Author: Garrison, Ray

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Chapter 4, Problem 15F15

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Total cost accounted for.

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Jones Manufacturing Co. Ltd. makes a product by way of three consecutive processes. Inspection takes place during the processing operation, at which point bad units are separated from good units and sold as scrap at $20 each. Normal losses are estimated to be 5% of input during the period. The following data relates to process 2 for the month of October. During October, 20,000 units valued at $400,000 were transferred from process 1 to process 2. Other costs incurred during the month were: Direct material added Direct labour Production overheads $272,000 $254,000 $ 120,400 At inspection, 3000 units were rejected as scrap. These units had reached the following degree of completion: Transfer from process 1 Direct material added Conversion costs 100% 80% 50% Work-in-progress at the end of October was 4,000 units and had reached the following degree of completion: Transfer from process 1 Direct material added 100% 60% 40% Conversion costs There were no unfinished goods in process 2 at the…

Chapter 4 Solutions

Managerial Accounting

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;...

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