Question

The assembly division of Walton Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation) Penuirement marize the total costs to account for calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed and transferred out) and to unis in ending work in process Egin by summarizing the total costs to account for Conversion Total Production Costs Direct Materials Cests Total cost to account for Next, calculate cost per equivalent unit for direct materials and conversion costs Direct Conversion Costs Materials Divide by Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to unitsin ending work in process (WIP) Begin by calculating the total from beginning inventory then calculate the total costs accounted for Total Choose from any list or enter any number in the input fields and then continue to the next question ASPEG HK

Answer 1

Solution Units 60 Beginning Work in process units Started in May 2017 478 Completed in May 2017 443 Started & completed in May 2017 (443 60) 383 Ending Work in process units (60+478-443) 95 Computation of Equivalent units Physical Equivalent Units Units Materials Conversion Flow of Production Units to account for: Work-in process, beginning Started in production during May Total units to account for 60 478 538 Units accounted for Units completed and transferred out during current period: From Beginning work in process 60 12 45 Started and completed 383 383 383 Work-in process, ending Total units accounted for 95 38 19 538 433 447 Computation of total cost to account for Total Direct Conversion Production Materials Costs Costs $350,150 $3,849,600 $4,199,750 Costs in beginning work-in process Total costs added during May 2017 Total costs to account for $249,750 $2,598,000 $2,847,750 $100,400 $1,251,600 $1,352,000 Computation of cost per equivalent unit for direct materials and conversion costs Direct Conversion Materials Costs Total costs added during May 2017/ Current period costs Divide by Number of Equivalent units of work done Cost per equivalent unit $2,598,000 $1,251,600 433 447 $6,000 $2,800 Assign total costs to unit completed (and transferred out) and to units in ending work in process Total Direct Conversion Production Materials Costs Costs Completed and transferred out $100,400 $350,150 Costs from beginning WIP inventory $249,750 Current costs added to complete beginning WIP $198,000 $72,000 $126,000 Inventory $226,400 $1,072,400 $1,298,800 $53,200 $1,352,000 $321,750 $2,298,000 Total from beginning inventory $548,150 $3,370,400 $3,918,550 Current costs of units started and completed Total costs of units completed and transferred out $2,619,750 Costs assigned to ending WIP inventory $281,200 $228,000 $4,199,750 Total costs accounted for $2,847,750

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А Е 1 Solution 2 Units Beginning Work in process units 60 5 Started in May 2017 Completed in May 2017 Started & completed in May 2017 (443-60) Ending Work in process units (60478-443) 478 6 443 7 -E6-E4 -E4+E5-E6 Computation of Equivalent units 10 11 12 Physical Equivalent Units 13 Conversion Units Materials 14 Flow of Production 15 Units to account for: 16 Work-in process, beginning Started in production during May Total units to account for -E4 -E5 C16+C17 17 18 19 Units accounted for 20 Units completed and transferred out during current period: 21 22 From Beginning work in process Started and completed Work-in process, ending Total units accounted for -E4 -E7 -E8 -SUM(C21:C24) C22 (100-80)% C23 100 % -C24 40% -SUMID21:D24) C22 (100-25)96 -C23 100 % -C24 20 % -SUME21:E24) 23 24 25 26 27 Computation of total cost to account for 28 Total Direct Conversion Production Materials Costs 29 Costs -SUM(D30:E30) -SUM(D31:E31) -SUM(с30:с31) 100400 1251600 -SUM(E30:E31) 30 Costs in beginning work-in process Total costs added during May 2017 Total costs to account for 249750 2598000 =SUM(D30:D31) 31 32

A E F 33 Computation of cost per equivalent unit for direct mate 34 35 Direct Conversion Materials Costs 36 Total costs added during May 2017/Current period costs Divide by Number of Equivalent units of work done Cost per equivalent unit 37 2598000 -D25 -D37/D38 1251600 38 -E25 39 -E37/E38 40 Assign total costs to unit completed (and transferred ou 41 42 Total Direct Conversion Production Materials Costs 43 Costs Completed and transferred out Costs from beginning WIP inventory 44 45 -SUM(D45:E45) 249750 100400 Current costs added to complete beginning WIP -SUM(D46: E46) -SUM(D47:E47 ) -SUM(D48:E48) Total costs of units completed and transferred outSUM(D49:E49) -SUM(D50:E50) -SUM(D51:E51) -E22 E39 -SUM(E45:E46) -E23 E39 -SUM (E47: E48 ) -E24 E39 -E49+E50 46 -D22 D39 -SUM(D45:D46) -D23 D39 -SUM(D47:D48) -D24 D39 D49+D50 Inventory 47 Total from beginning inventory Current costs of units started and completed 48 49 50 Costs assigned to ending WIP inventory Total costs accounted for 51 52