Question

Eire Products is a specialty lubricants company. The Lake Plant producesa single product in three departments: Filtering, Blending, and Packaging. Additional materials are added in the Blending Process when units are 50 to 55 percent complete with respect to conversion. Information for operations in June in the Blending process appear as follows. process on June 1 consisted of 9,000 barrels with the following costs Degree of Completion Amount Filtering costs transferred in Costs added in Blending Direct materials Conversion costs $ 10,540 100% 0 % 30% 0 18,335 18,335 $28,875 Work in process June 1 During June, 116,000 barrels were transferred in from Filtering at a cost of $151,960. The following costs were added in Blending in June. Direct materials $387,500 538,265 Conversion costs $925,765 Total costs added Blending finished 115,000 barrels in June and transferred them to Packaging. At the end of June, there were 10,000 barrels in work in process inventory. The units were 60 percent complete with respect to conversion costs The Blending Department uses the weighted-average method of process costing. The Filtering Department at Eire uses the FIFO method of process costing. The cost analyst in Blending has learned that if the Filtering Department at Eire had used the weighted average method, the amount of costs transferred in from Filtering would have been $10,340 in the beginning work in process and $149,660 for the amount transferred in this month. Required: Prepare a production cost report for June for the Blending Department. (Round "Cost per equivalent unit" to 2 decimal places.) EIRE PRODUCTS Blending Department Production Cost Report-Weighted-Average Prior Department Costs Physical units Total Costs Materials Conversion Flow of Production Units Units to be accounted for Beginning WIP inventory Units started this period Total units to be accounted for Costs to be accounted for Costs in beginning WIP inventory Current period costs Total costs to be accounted for Cost per equivalent unit Prior department costs Materials Conversion Costs accounted for: Costs assigned to units transferred out Prior department costs Materials Conversion Total costs of units transferred out Costs assigned to ending WIP inventory Prior department costs Materials Conversion Total ending WIP inventory Total costs accounted for

Answer 1

Solution Required Production cost report (Weighted-average method) EIRE PRODUCTS Blending Department Production Cost Report-Weighted-Average Prior Physical Total Costs Materials Conversion Department Units Costs Flow of Production Units Units to be accounted for: Beginning WIP Inventory Units started this period Total units to be accounted for 9,000 116,000 125,000 Units accounted for Units completed and transferred out: From Beginning Inventory Started and completed currently Total transferred out 9,000 106,000 115,000 115,000 115,000 115,000 Units in Ending WIP Inventory 10,000 10,000 10,000 6,000 Total units accounted for 125,000 125,000 125,000 121,000 Costs to be accounted for: Costs in beginning WIP inventory $28,875 $10,540 $0 $18,335 Current period costs $1,077,725 $1,106,600 $151,960 $387,500 $538,265 Total costs to be accounted for $162,500 $556,600 $387,500 Costs per equivalent unit Prior department costs $1.30 Materials $3.10 $4.60 Conversion Costs accounted for: Costs assigned to units transferred out $149,500 $356,500 $529,000 $149,500 Prior department costs $356,500 Materials Conversion $529,000 Total costs of units transferred out $1,035,000 Costs assigned to ending WIP inventory Prior department costs Materials $13,000 $13,000 $31,000 $31,000 $27,600 $27,600 Conversion $71,600 $1,106,600 Total ending WIP inventory Total costs accounted for $387,500 $162,500 $556,600

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A C E F G 1 Solution 2 Required: Production cost report(Weighted-average method 4 5 EIRE PRODUCTS 6 Blending Department Production Cost Report-Weighted-Average 7 Prior Physical Total Costs Department Materials Conversion Units Costs 8 Flow of Production Units Units to be accounted for: 10 9000 11 Beginning WIP Inventory Units started this period 116000 SUM(C11:C12) 12 13 Total units to be accounted for 14 Units accounted for 15 16 Units completed and transferred out: 17 From Beginning Inventory Started and completed currently -C11 - 115000-C17 -SUM(C17:C18) 18 SC$19 100% -SC$20 100 % -E19+E20 -SC$19.100 % SC$19 100 % -SC$20 100% SCS20 60 % =F19+F20 19 Total transferred out 20 Units in Ending WIP Inventory Total units accounted for 10000 C19+C20 21 -G19+ G20 22 23 Costs to be accounted for: -SUM(E24:G24) -SUM(E25:G25) 151960 SUM(D24:D25) -SUM(E24:E25) 24 Costs in beginning WIP inventory Current period costs Total costs to be accounted for 18335 538265 =SUM F24:F25)=SUM(G24:G25) 10540 25 |387500 26 27 28 Costs per equivalent unit: Prior department costs -E26/E21 29 =F26/F21 30 Materials G26/G21 31 Conversion 32

В D E F G 33 Costs accounted for: 34 Costs assigned to units transferred out: -SUM(E35:G35) -SUM(E36:G36) -SUM(E37:G37) -SUM(D35:D37) -ES19 E29 35 Prior department costs =FS19 F30 36 Materials -GS19 G31 37 Conversion 38 Total costs of units transferred out Costs assigned to ending WIP inventory: 39 -SUM(E40:G40) ES20 E29 -SUM(E41:G41) -SUM(E42:G42) -SUM(D40:D42) D38+D43 40 Prior department costs =FS20 F30 41 Materials -GS20 G31 42 Conversion 43 Total ending WIP inventory -SUM(E35:E43) -SUM(F35:F43) -SUMG35:G43) 44 Total costs accounted for