Question

ACCTG 231 - Spring 2020 Comprehensive Problem 2 To receive credit for any answer, your computations must be clearly presented with each component well-labeled (identified). Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department. Below is information related to Intense Co.'s Mixing Department during the current period: • The Mixing Department began the period with 10,000 units of beginning inventory, costing $132,000. o The $132,000 consisted of $90,000 of materials cost and $42,000 of conversion costs. o The 10,000 units were 60% complete with regard to materials and 40% complete with regard to conversion. During the period an additional 90,000 units were started in the Mixing Department. Costs added to production during the period consisted of $385,000 of materials and $560,000 of conversion costs. • As of the end of the period, 20,000 units were still unfinished. The units were 75% complete with regard to materials and 30% complete with regard to conversion costs. Required For the Mixing Department for the Intense Co.:/ Using the weighted average method, compute equivalent units of production for materials and for conversion for the current period. (4 points) Compute the cost per equivalent unit for materials and for conversion costs for the current period. (2 points) Assign costs to units transferred out to the Finishing Department and to units remaining in ending inventory. (2 point) 4. Prepare a Cost Reconciliation Report for the Mixing Department. (4 points)

Answer 1

1-4)Mixing Deptt. Process cost summary:
				(4)Total Cost
	Phy.	DM	CONV.	Reconciliation
WIP OP	10000	10000	10000
STARTED & COMPL.	70000	70000	70000
TRANSFERRED OUT	80000
WIP CL	20000	15000	6000
(1)EQUIVALENT UNITS		95000	86000
COST OF WIP OP		90000	42000	132000
COST INCURRED		385000	560000	945000
COST TO ACCOUNT FOR		475000	602000	1077000
(2)COST PER EQUIVALENT UNIT		5.00	7.00
(3)Cost of Transf. Out (80000*Cost)		400000	560000	960000
(3)Cost of WIP CL		75000	42000	117000
COST ACCOUNTED FOR				1077000