Question

Case 4-19 Second Department-weighted-Average Method [LO4-2, LO4-3, LO4-4] "I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can't understand it." $ 8,663* Finishing Department costs: Work in process inventory, April 1, 200 units; materials 100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 2,700 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs 30,295 12,465 26,490 $ 77,913 $ 77,913 Finishing Department costs assigned to: Units completed and transferred to finished goods, 3,300 units at $23.610 per unit Work in process inventory, April 30, 600 units; materials % complete; conversion 50% complete Total departmental costs assigned $ 77,913 *Consists of cost transferred in, $4,298; materials cost, $2,055, and conversion cost, $2,310. "He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly." "It's not just the format of his report that I'm concerned about. Look at that $23.610 unit cost that he's come up with for April. Doesn't that seem high to you?" said Ms. Scarpino. "Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation," replied Mr. Harrop. "I'll get someone else to redo this report and then we can see what's going on." Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. The company uses the weighted average method in its process costing. Required: 1-a. Calculate the equivalent units of production. 1-b. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places.) 1-c. How much cost should have been assigned to the ending work in process inventory? (Round your intermediate calculations to 2 decimal places.) 1-d. How much cost should have been assigned to the units completed and transferred to finished goods? (Round your intermediate calculations to 2 decimal places.)

Answer 1

Answers @ The equivalent units of production : Transferred in costs, Equivalent units or production = Transferred to finished goods + Transfered incost. = 3,300 + 600 = 3900 Transferred in materials, Equivalent units of production = Transferred to finished goods = 3,300 Transformed in conversion, Equivalent units of production = Transferred to finished goods +(600x 50%) = 3,300+(300) = 3600

10 cost per equivalent unit ºs Transferred in costs, total costs: cost die begi ming hop + costs added during the privind = 4,298 + 30,895 = 34593 cost per equivalent unit = 34593 3900 - $8.87 Transferred in materials, total costs = 2,055 +12,465 = $14.520 Cost per Equivalent unit = 145.20 3,300 =$4.4 Transferred in conversion total costs = 2,310+26,490 = 28800

cost per equivalent unit = ale 3600 © Ending work in proccy inventory Transfered in costs, Cost of Ending wip = equivalent whits x cost per equivalent aunit 1 = 600x 8.87 $ 53 da Transferred in materials cost of Ending wip = cost per equivalent unit = $4.4 Transferred in conversion, cost of Ending wip = 300x 8 - 2400 dunits completed & transferred out: costs . Costs & Goody completed = 330049.87 = $29271

Transformed in materiale; cost or goods completed = 3300 x 4.4 = $14620 Transferred in conversion) cast di goods completed = 3300X8 = 2400 @ Equivalent units of production Transferred in costs (4) materiale conversiones Talal ($) 3900 3300 | 3000 10800 21.27 8.87 1 44 18 5322 2400 7722 Cost per Equivalent unit 10 cost of Ending work in I procey inventory cost of units completed & transferred out comes 29.27114520 26400 70191