Question

Portland Tile produces ceramic tiles using two sequential production departments; Tile Forming and Tile Finishing. The company uses a weighted average process costing system. Data for the Tile Forming Department Month ended Oct 31 Information about units: Units in WIP, Oct 1 4,000 Units started during Oct. 18,000 Completed and transferred to Finishing Units in WIP, Oct 31 (80% complete) 2,000 - Direct materials are added at the beginning of the forming process. Information about costs: Beginning inventory consists of $800 of direct material costs and $1,000 of direct labor costs. Direct materials used in Oct. total $6,000, and direct labor costs incurred total $8,100. Overhead is applied at a rate of 100% of direct labor costs. Data for the Tile Finishing Department Month ended Oct 31 Information about units: Units in WIP, Oct 1 4,000 Units started during Oct. Completed and transferred out Units in WIP, Oct 31 (20% complete) 5,000 Direct materials are added at the end of the finishing process. Information about costs: Beginning inventory consists of S9,360 of transferred in costs, 80 of direct material costs and S4,067 of direct labor costs. Direct materials added in Oct. total 36,900, and direct labor costs incurred total $16,200. Overhead is applied at a rate of 50% of direct labor costs.

Answer 1

Solution 1. Given that Data for the tile forming department Month ended Oct 31. Given information about Units units in klip, oct I 42000 units started during oct 18,000 Total cost = 22,000 units in WIP, Oct 31 (80%, complete ) = 2000 Equivalent completed units in closing - 2,000X80 - (1600] Equivalent units in closing wip incomplete form 100-80) = 2000 x 200 - 400 Completed and trans-fened to finishing department Total cost – Equivalent unit in closing wpincompte form 700 22,000 - 400 = 21600] i completed & tranferred (21600] to finishing department

production report at forming department units onits in wip Oct 1 Units Started during oct 18 Total cost 4,000 L8,000 units in Wip, Oct 31 (801.complete) Equivalent completed units in closing Equivalent units in closing wipincomplete completed and transferred to 22000 2,000 1600 981.com ptore 400 2011, incomplet 21600 frishing de port ment 2. given data for the tile finishing department. Month ended oct 31. . Units in wip oct I = 4,000 Units Started in oct = completed and transferred to fininshing department - 21600) Total = 41000+ 21600 - 25600 units in wip oct 31 609. complete)- 5,000 Equivalent completed units in closing = 5,000 x 20 100 Equivalent units in closing wipincompted 5,000 X80 = 14,000 OD

Equivalent units of production - Potal - Equivalent 3 units in closing wip in complete forms = 25600 - 4,000 - 21600] units. Production report at Finishing department. units in wip units started in oct 4000 21600 25,600 1ooo 20%. Completed Total units Equivalent completed units in closing Equivalent units in closingwip in complete forms Equivalent units of production 806 incompleted 4,000 21,600