Question

Chapter 20 Units of production data for the two decartments of Continental Cabled Wire Company for une of the current fiscal year are as follows: Drawing Department Winding Department Work in process, June 1 7,500 units, 25% 1.900 units, 65% completed completed Completed and transferred to next processing department during June 104,100 units 103.400 units Work in process, June 30 5,800 units, 80% 2,500 units, 30% completed completed a. If all direct materials are placed in process at the beginning of production determine the direct materials and conversion equivalent units of production for lune for the Drawing Department. b. If all direct materials are placed in process at the beginning of production determine the direct materials and conversion equivalent units of production for June for the Winding Department. Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2016: ACCOUNT Work in Process-Blending Department ACCOUNT NO Balance Date Item Debit Credit Debit Credit Mar. 1 Bal, 6,500 units, 3/5 completed 24,310 31 Direct materials, 260,000 units 858,000 882,310 31 Direct labor 167,400 1,049,710 31 Factory overhead 41,800 1,091,510 31 Goods transferred, 261,000 units 31 Bal 2 units, 4/5 completed Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process-Blending Department when cometing cost per equivalent units, round to two decimal places.

Answer 1

Answer to 1st Question

Drawing Department	Material Equivalent	Conversion Equivalent
Completed	104,100	104,100
Add : Closing Balance	5,800	4,640
Less : Opening Balance	(7,600)	(1,900)
Direct equivalent units of production	102,300	106,840

Winding Department	Material Equivalent	Conversion Equivalent
Completed	103,400	103,400
Add : Closing Balance	2,600	780
Less : Opening Balance	(1,900)	(1,235)
Direct equivalent units of production	104,100	102,945

Answer to 2nd Question :

a) Good transferred 261000 units at 1,069,840

b) Balance 5500 Units closing balance 21,670

Working Notes :-

Direct Material Cost (858000/260000) = 3.3

Closing balance Unit (6500+260000-261000) = 5500

Conversion Equivalent Unit Produced
Goods Transferred	261,000
Closing Balance (5500*4/5)	4,400
Opening Balance (6500*3/5)	(3,900)
Conversion Equivalent Unit Produced	261,500

Total cost incurred for conversion	209,200.00
Conversion cost per Unit (209200/261500)	0.80

Closing Balance
Material Cost (5500*3)	18,150
Labour & Overhead Cost (5500*4/5*0.8)	3,520
Value of Closing Balance	21,670

Cost of Production
Opening Balance	24,310
Direct material	858,000
Direct Labor	167,400
Factory Overhead	41,800
Clsoing Balnce	(21,670)
Cost of Production	1,069,840