Question

alan Suces inc. produces the me de sauce to department to readed at the begingo d spices) are added when the production. The following production data pertas d De WIP very comple) Started July Good is completed and transferred out Ending WIP livestory0% comple) departe wing onder Common e dem 250.000 22.000 Beginning WIP Inventory Tomas S 300 S Other Ingrediens $3,400 Conversion Current Period Tomas Other Ingredients S 13.000 $40.000 $7,400 a. On the following page complete se t d e the cost of de Spaghetsauce and assign those cost to the people b. Based on the information from para piese swer the following quo 1. What are the local units to be assigned cose 2. What are the equivalent number of units for Other Ingredients? 3. What are the equivalent number of units for Conversion? 4. What are the per un cost of conversion (round to 3 decimal places) 5. What are the total cost of beginning WIP in process transferred out? 6. What are the total dollars of ending work in process?

Answer 1

Requirement (a) Italian Sauces, Inc Cost of Production Report- FIFO For the month ended July 31 Equivalent Units Other Ingredients Physical units Conversion costs Tomatoes UNITS e.u e.u e.u Units to account for Units in Beginning WIP 20000 Units started 250000 Total units to acount for Req b(1) 270000 Units accounted for Transferred to Casting Dept. Out of Beginning WIP 20000 0% 0% 20% 0 4000 Out of current production 201000 100% 100% 100% 201000 201000 201000 205000 221000 Total 201000 201000 Abnormal Loss 100% 12000 100% 12000 100% 12000 12000 Inventory in Process, Jul 31 37000 100% 37000 0% 30% 11100 0 228100 Total units acccounted for 270000 250000 213000 Req b(3) Req b(2) Other Ingredients Total Costs COSTS Tomatoes Conversion costs Costs to account for: 1,07,000 $ 2,28,100 0.469 Req b(4) $ Current production costs 13,000 $ 40,000 $ 1,60,000 $ 2,13,000 $ Equivalent units 2,50,000 $ $ $ 0.188 $ Cost per equivalent unit 0.052 Costs accounted for: Transferred to Casting Dept. in Jul 96,164 $ (205000*0.469) $ 10,452 1,44,362 37,746 $ (201000*0.052) (201000*0.188) 2,254 $ 5,629 $ (12000 0.469) $ 624 $ Abnormal Loss 8,507 (12000*0.052) (12000*0.188) $ 7,131 Req b(6) Inventory in Process, Jul 31 1,924 $ 5,207 $ (0*0.188) (11100*0.469) (37000*0.052) 40,000 $ 1,07,000 $ Total costs acccounted for 13,000 $ 1,60,000 క్లేక్ీ క్లీక్ష

Costs for transferred to Casting Dept. $ Current production cost 1,44,362 (+) Beginning WIP costs (800+3400+7400) 11,600 $ 1,55,962 Req b(5) Requirement (b) 1. The total units to be assigned cost is 270,000 units 2. The equivalent number of units for Other ingredients is 213,000 units 3. The equivalent number of units for Conversion costs is 228,100 units. 4. The per unit cost of conversion is $0.469 5. The total cost of beginning WIP in process transferred out is $ 155,962 6. The total dollars of ending WIP is $ 7,131