Required:
1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September.
2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September.
3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September.
4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing, materials, conversion, and in total for September.
5. Prepare a cost reconciliation report for the Casing and Curing Department for September.
Solution
Mixing | Material | Conversion | |
Equivalent Units of Production | 51.0 | 50.8 | 50.7 |
.
Mixing | Material | Conversion | |
Cost per equivalent Unit | $ 1,630.000 | $ 120.000 | $ 850.000 |
.
Mixing | Material | Conversion cost | Total | |
Ending Inventory | $ 1,630 | $ 96 | $ 595 | $ 2,321 |
.
Mixing | Material | Conversion cost | Total | |
Units Completed and transferred | $ 81,500 | $ 6,000 | $ 42,500 | $ 130,000 |
.
Cost Reconciliation | |
Costs to be accounted for: | |
Beginning Wip cost | $ 2,365 |
Cost transferred in | $ 81,460 |
Cost incurred during period | $ 48,496 |
Total cost to be accounted for | $ 132,321 |
Costs accounted for as follows: | |
Cost of Units Transferred Out | $ 130,000 |
Cost of Ending Wip | $ 2,321 |
Total cost accounted for | $ 132,321 |
Working
Statement of Equivalent Units(Weighted average) | |||||||
Mixing | Material | Conversion cost | |||||
Units | Complete % | Equivalent units | Complete % | Equivalent units | |||
Transferred | 50 | 100% | 50 | 100% | 50.0 | 100% | 50 |
Closing WIP | 1 | 100% | 1 | 80% | 0.8 | 70% | 0.70 |
Total | 51 | 51.0 | Total | 50.8 | Total | 50.7 |
.
Cost per Equivalent Units (Weighted average) | ||||
COST | Mixing | Material | Conversion cost | TOTAL |
Beginning WIP Inventory Cost | $ 1,670.00 | $ 90 | $ 605 | $ 2,365 |
Cost incurred during period | $ 81,460.00 | $ 6,006 | $ 42,490 | $ 129,956 |
Total Cost to be accounted for | $ 83,130 | $ 6,096 | $ 43,095 | $ 132,321 |
Total Equivalent Units | 51.0 | 50.8 | 50.7 | |
Cost per Equivalent Units | $ 1,630.000 | $ 120.000 | $ 850.000 |
.
Statement of cost (Weighted average) | |||||
Cost | Equivalent Cost/unit | Ending WIP | Transferred | ||
Units | Cost Allocated | Units | Cost Allocated | ||
Mixing | $ 1,630.00 | 1 | $ 1,630.00 | 50 | $ 81,500 |
Material | $ 120.00 | 1 | $ 96.00 | 50 | $ 6,000 |
Conversion cost | $ 850.00 | 1 | $ 595.00 | 50 | $ 42,500 |
TOTAL | $ 132,321 | TOTAL | $ 2,321 | TOTAL | $ 130,000 |
Required: 1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and...
Required: 1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September. 2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. 3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. 4. Compute the Casing and Curing Department's cost of units transferred out to the...
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