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Saline Solutions usos process costing to account for production of its unique compound BG at its River Plant The River Plant has two departments Rand S Raw materials are added at two points in the production of BG. First, rubber pellets are added at the beginning of production in Department R Next, aliquid thinner is added in Department R when the product is 60 percent complete with respect to conversion costs. Once the basic compound is completed in Department R, it is transferred to Department S for mixing and packaging The following information is available from the River Plant for May (No new material is added in Departments) Department S Production and Costs: May $ 506,814 Beginning inventory (68,000 units, complete with respect to Department 5 costs) Total cost (Department Rand Department 5) costi Beginning inventory Current work (580,000 units started) Department it costs Department 5 costs $3,476,660 1,256,266 The ending inventory has 88,000 units, which are 100 percent complete for Department R costs Required a. Assume that Saline Solutions used weighted average process costing and that the cost per equivalent unit for May for materials in Department is $6.10 and for conversion costs it is $210. Prepare a production cost report for Saline Solutions Department for the month of May b. What is the cost of product transferred out of Department S for May? c. What is the cost of ending inventory in Department Sfor May? Complete this question by entering your answers in the tabs below. Required A Required B Required c Assume that Saline Solutions used weighted average process costing and that the cost per equivalent unit for May for materials in Department 5 is $6.10 and for conversion costs it is $2.10. Prepare a production cost report for Saline Solutions Department S for the month of May. (Round "Cost per equivalent unit to 2 decimal places.) Physical Units Total Equivalent Units Direct Conversion Materials Costs Flow of units Units to be accounted for Beginning WIP inventory Units started this period Total units to account for Units accounted for Completed and transferred out Unitsin ending inventory Packaging Total units accounted for Flow of costs Costs to be accounted for Costs in beginning WP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Materials Conversion Costs accounted for Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for

Answer 1

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Solution Required A. Physical Units Equivalent Units Conversion Direct Materials Costs Total 68,000 580,000 648,000 Flow of units: Units to be accounted for: Beginning WIP Inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending inventory Mixing Packaging Total units accounted for 560,000 560,000 560,000 88,000 88,000 52,800 612,800 648,000 648,000 $506,814) $4,732,866 $5,239,680 $476,200 $3,476,600| $3,952,800 $30,614 $1,256,266 $1,286,880 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 Materials Conversion Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for $6.10 $2.10 $4,592,000 $647,680 $5,239,680 $3,416,000 $536,800 $3,952,800 $1,176,000 $110,880 $1,286,880 Required B. Cost of product transferred out | $4,592,000 Required C. Cost of ending inventory $647,680

Solution Required A Physical Equivalent Units Direct Conversion Materials Costs Units Total 8 9 10 11 68000 580000 =SUM(C9:C10) 12 Flow of units: Units to be accounted for: Beginning WIP Inventory Units started this period Total units to account for Units accounted for: Completed and transferred out Units in ending inventory Mixing Packaging Total units accounted for =C13100% =C13100% =C11-88000 88000 13 14 15 16 =C14100% -C146096 -SUM(E13:16) -SUM(F13:F16) -SUM(C13:C16) 18 20 506814 =E23-E22 =F22+E22 3476600 =D21+D22 |=E17*6.1 =D21-E21 1 256266 |=F21+F22 23 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 Materials Conversion Costs accounted for: Costs assigned to units transferred out Costs of ending WIP inventory Total costs accounted for =E23/E17 =F23/F17 -F28+529 513°E25 =E29+F29 1-E15E25 =D28+029 =E284E29 13°526 =F16°F26 =F28+F29 32 33 Required B. Cost of product transferred out -028

C D E 36 Required C. Cost of ending inventory =D29 38 39