Question

eBook Print Question 3 Not complete Marked out of 2.00 P Flag question Calculate Equivalent Units, Unit Costs, and Transferred Costs-Weighted Average Method Canfield Manufacturing, Inc., operates a plant that produces its own regionally-marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Canfield uses the weighted average method. The follow Sunnort Work in Process-Blending Department January 1 inventory (5,000 gallons, 60% processed) Direct material $12,000 Conversion costs 5,900 Transferred to Bottling Department (60,000 gallons) January charges: Direct material (61,000 gallons) 153,000 Direct labor 73,600 Manufacturing overhead 42,480 January 31 inventory [? gallons, 70% processed] Required Assuming Canfield uses the weighted average method in process costing, calculate the following amounts for the Blending Department: a. Number of units in the January 31 inventory. b. Equivalent units for materials and conversion costs. c. January cost per equivalent unit for materials and conversion costs. d. Cost of the units transferred to the Bottling Department. e. Cost of the incomplete units in the January 31 inventory. Round average cost per equivalent unit to two decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number. Canfield Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2019

Answer 1

Answer:

Ending inventory = Beginning inventory + Additions during the period - Completed = 5000 + 61000 - 60000 = 6,000

January conversion cost (added in current period) = 73600 + 42480 = $116,080

Flows of units and Equivalent Units Calculation, January 2019 Equivalent Units % Work done Direct % Work materials done Conversion cost Complete/ Transferred Ending Inventory Total 60,000 6,000 10,000 a. 100% 100% b. 60,000 6,000 66,000 100% 70% 60,000 4,200 64,200 b. Product Cost Report Direct materials Conversion cost $17,900 $269,080 $286,980 $12,000 $153,000 $165,000 66,000 $2.50 c. $5,900 $116,080 $121,980 64,200 $1.90 C. Beginning Inventory Current Total cost to Account for - Total Equivalent Units Average Cost / Equivalent unit Complete / Transferred: Direct Materials Conversion cost Cost of Goods Manufactured Ending Inventory Direct Materials Conversion cost Cost of Ending Inventory Total cost Allocated $150,000 $114,000 $264,000 d. $15,000 $7,980 $22,980 e. $286,980