Question

Fincher Farms uses process costing to account for the production of canned vegetables. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning work in process is 30 percent complete; ending work in process is 40 percent complete. The following is an excerpt from the production report for Fincher Farms. Assume the company uses Weighted-Average Method. Required: Find the missing amounts. FINCHER FARMS Process Costing Production Report (Weighted Average Method) For the month ended January 31, 2016 Physical Units 40,000 Units to be accounted for Beginning work in process Started into production Total units Equivalent Units Physical Units Direct Materials Conversion Cost 260,000 Units accounted for Completed and transferred Ending work in process Total units 260,000 80,000 340,000

Answer 1

Fincher Farms Process Costing Production Report (Weighted-Average Method) For the month ended January 31, 2018 Physical Units Units to be accounted for Beginning work in process Started into production Total units 40000 300000 340000 Equivalent Units Direct Materials Conversion Cost Physical Units Units accounted for Completed and transferred 260000 Ending work in process 80000 Total units 340000 260000 80000 340000 260000 32000 292000 Started into Production (Physical Units) 340,000 - 40,000 = 300,000 Ending Work in Process (Physical Units) 340,000 - 260,000 = 80,000 Completed and Transferred (Conversion Cost) 260,000 x 100% = 260,000 Ending Work in Process (Conversion Cost) 80,000 x 40% = 32,000