Question

The Fruit of the Womb Company makes 2 types of baby apparel: Bibs and Bonnets. The Company uses two processes: Cutting and Sewing. In the Cutting Department, materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the cutting process. The bibs and bonnets are then transferred to the Sewing department. During the month of March, the following costs were in incurred in the Cutting Department: Bibs Bonnets Production Data Work in process - March 1 Units Completed and Transferred Out Work in process - March 31 Work in process - % complete 80,000 36,000 40% 15,000 19,000 75% Cost Data Direct Materials Labor Overhead $131,500 $230,000 $.45.000 $84,000 $72,000 $12,500 Required: Calculate the equivalent units of production for materials and conversion costs. Calculate the unit costs of production Show the assignment of costs of units transferred out and in process. b.

Answer 1

Answer a. Equivalent units of productions Material Bibs Bonnets Conversion 116000 94400 34000 29250 Answer b. Equivalent unit cost of productions Material Bibs Bonnets Conversior Total 1.13 $ 2.91 $ 2.47 $ 2.89 $ 4.05 per unit 5.36 per unit EUP Answer c Cost Assignment and Reconciliation Bibs Cost of units transferred out Direct materials Conversion Total costs transferred out EUP Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for Cost per El Total cost 80000 $ 1.13 $ 90,400 80000 $ 2.91 $ 232,800 $ 323,200 Cost per EUP Total cost 36000 $ 1.13 $ 40,680 14400 $ 2.91 $ 41,904 $ 82,584 $ 405,784 EUP Answer c Cost Assignment and Reconciliation Bonnets Cost of units transferred out Direct materials Conversion Total costs transferred out Cost per El Total cost 15000 $ 2.47 $ 37,050 15000 $ 2.89 $ 43,350 $ 80,400 Cost per EUP Total cost 19000 $ 2.47 $ 46,930 14250 $ 2.89 $ 41,183 $ 88,113 $ 168,513 EUP Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for Calculations for Bibs Equivalent Units of Production (EUP). Weighted Average Method 5 Costs EUP-Materi Conversi EUP-Co Units Materials als on nversion Units completed and transferred out 80000 100% 80000 100% 80000 Units of ending work in process 36000 100% 36000 40% 14400 Equivalent units of production 116000 116000 94400 Conversio Cost per Equivalent Unit of Production Materials Beginning WIP Added cost $ 131,500 $275,000 Total costs 131500 Costs 275000 - Equivalent units of production EUP 116000 EUP 94400 Cost per equivalent unit of production (rounded to 2 decimals) 1.13 $ 2.91 Unit cost of production 1.13 + 2.91 $ 4.05 Total Costs to Account for: Costs of begininning work in process Costs incurred this period Material $131,500 Conversion $275,000 Total costs to account for: $406,500 Total costs accounted for $405,784 Difference due to rounding cost/unit $ 716 Cost Assignment and Reconciliation Cost per Cost of units transferred out FUP EUP Total cost Direct materials 80000 $ 1.13 $ 90,400 Conversion 80000 $ 2.91 $ 232,800 Total costs transferred out $ 323,200 Cost per Costs of ending work in process EUP EUP EUP Total cost Direct materials 36000 $ 1.13 $ 40,680 Conversion 14400 $ 2.91 $ 41,904 Total cost of ending work in process $ 82,584 Total costs accounted for $ 405,784 FUP Calculations for Bonnets Equivalent Units of Production (EUP)- Weighted Average Method EUP—Materi Conversi EUP—Co Units Materials als on nversion Units completed and transferred out 15000 100% 15000 100% 15000 Units of ending work in process 19000 100% 19000 75% | 14250 Equivalent units of production 34000 34000 29250 Conversio Cost per Equivalent Unit of Production Materials Beginning WIP Added cost $ 84,000 $ 84,500 Total costs Costs 84000 Costs 84500 = Equivalent units of production EUP 34000 EUP 29250 Cost per equivalent unit of production (rounded to 2 decimals) 2.47 $ 2.89 Unit cost of production 2.47 + $ 2.89 = $ 5.36 Total Costs to Account for: Costs of begininning work in process Costs incurred this period Material $ 84,000 Conversion $ 84,500 Total costs to account for: $168,500 Total costs accounted for $168,513 Difference due to rounding cost/unit $ (13) Cost Assignment and Reconciliation Cost per Cost of units transferred out EUP Total cost Direct materials 15000 $ 2.47 $ 37,050 Conversion 15000 $ 2.89 $ 43,350 Total costs transferred out $ 80,400 Cost per Costs of ending work in process EUP Total cost Direct materials 19000 $ 2.47 $ 46,930 Conversion 14250 $ 2.89 $ 41,183 Total cost of ending work in process $ 88,113 Total costs accounted for $ 168,513 CUP