Question

Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started units during November. The following production activity unit and cost information refers to the assembly departme November production activities. Units Assembly Department Beginning work in process Units transferred out Ending work in process 2,500 9,500 3,200 Percent of Direct Materials 60% 100% Percent of Conversion 40% 100% 35% 85% $2,483 (consists of $964 for direct materials and $1,519 for conversion) Beginning work in process inventory-Assembly dept Costs added during the month: Direct materials Conversion $11,256 $19,721 Required: Assign costs to the assembly department's output-specifically, the units transferred out to the painting department and remain in process in the assembly department at month-end. Use the FIFO method. (Do not round intermediate calcul CARLBERG COMPANY FIFO method Costs of units transferred out Cost of beginning work in process inventory Costs to complete beginning work in process Direct materials Conversion Total costs to complete Cost of units started and completed this period Direct materials Conversion Total cost of units started and completed Total costs of units transferred out Cost of ending work in process inventory Direct materials Conversion Total costs of ending work in process Total costs assigned . < Prev

Answer 1

solution: 2483 1050 3075 4125 CARLBERG COMPANY FIFO method Costs of units transferred out Cost of beginning work in process inventory Costs to complete beginning work in process Direct materials Conversion Total costs to complete Cost of units started and completed this period Direct materials Conversion Total cost of units started and completed Total costs of units transferred out Cost of ending work in process inventory Direct materials Conversion Total costs of ending work in process Total costs assigned 7350 14350 21700 28308 2856 2296 5152 33460

Wokring: 1.Equivalent units of production - FIFO a*b Beginning inventory units started and completed=9500-2500 Ending inventory Equivalent units of service (production) Units % Material a 2,500 40% 7,000 100% 3,200 85% EUP- Material % conversion EUP- conversion atc 1,000 60% 1,500 7,000 100% 7,000 2,720 35% 1,120 10,720 9,620 2.Cost per equivalent unit of production Costs incurred this period = Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Material 11256 10,720 EUP 1.05 conversion 19,721 9,620 2.05 EUP 3.Cost of units transferred out: EUP a Cost per EUP Total cost b a*b cost in beginning work in process=8500+4900 2,483.00 cost to complete beginning work in process Material conversion 1,000 1,500 1.05 2.05 1,050.00 3,075.00 4,125.00 Units started and completed Material conversion Total costs of goods transferred out 7,000 7,000 1.05 2.05 7,350 14,350 21,700 28,308 3. Costs of ending goods in process EUP Cost per EUP Total cost la b a *b 2,720 1.05 2,856 1,120 2.05 2,296 Material conversion Total cost of ending goods in process 5,152