Bisson Furniture uses a process cost system to account for its
chair factory. Beginning inventory consisted of 5,000 units (100%
complete as to material, 55% complete as to labor) with a cost of
$124,800 materials and $104,500 conversion. 58,000 units were
started into production during the month with material costs of
$1,537,000 and $2,124,375 of conversion costs. The ending inventory
of 6,000 chairs was 100% complete as to materials and 40% complete
as to labor.
Required: HINT: Use the excel
template found on blackboard “Equivalent Units of Production” to
help you.
Part 1: Using the weighted average costing method:
**WHAT GOES WHERE IT IS YELLOW??
Homework Answers
| Production Cost Report | |||||
| Weighted Average Method | |||||
| Physical | % of Completion | ||||
| Units (a) | % (b) | Materials (a*b) | % (c ) | Conversion (a*c) | |
| Beginning inventory | 5,000 | 100% | 5,000 | 55% | 2,750 |
| Add: Units started into the production | 58,000 | ||||
| Total units accounted for | 63,000 | ||||
| Less: Ending inventory | 6,000 | ||||
| Units completed and transferred out | 57,000 | ||||
| Physical | % of Completion | ||||
| Units accounted for: | Units (a) | % (b) | Materials (a*b) | % (c ) | Conversion (a*c) |
| Units completed and transferred out | 57,000 | 100% | 57,000 | 100% | 57,000 |
| Ending Inventory | 6,000 | 100% | 6,000 | 40% | 2,400 |
| Total units accounted for | 63,000 | ||||
| Physical | % of Completion | ||||
| Equivalent units of production: | Units (a) | % (b) | Materials (a*b) | % (c ) | Conversion (a*c) |
| Units in beginning inventory | 5,000 | 100% | 5,000 | 55% | 2,750 |
| Units started and completed | 57,000 | 100% | 57,000 | 100% | 57,000 |
| Units in ending WIP inventory | 6,000 | 100% | 6,000 | 40% | 2,400 |
| Equivalent units of production (a) | 68,000 | 68,000 | 62,150 | ||
| Costs to be accounted for: | Total | Materials | Conversion | ||
| Costs in beginning WIP ($124,800 + $104,500) | $229,300 | $124,800 | $104,500 | ||
| Current period costs ($1,537,000 + $2,124,375) | $3,661,375 | $1,537,000 | $2,124,375 | ||
| Total costs to be accounted for (b) | $3,890,675 | $1,661,800 | $2,228,875 | ||
| Cost per equivalent unit: | |||||
| Cost per equivalent unit (b / a) | $57.22 | $24.44 | $35.86 | ||
| Costs accounted for: | Total | Materials | Conversion | ||
| Costs assigned to units transferred out ($57.22 * 57,000 units); ($24.44 * 57,000 units); ($35.86 * 57,000 units) | $3,261,301 | $1,392,979 | $2,044,181 | ||
| Costs assigned to WIP ending inventory ($57.22 * 6,000 units); ($24.44 * 6,000 units); ($35.86 * 2,400 units) | $343,295 | $146,629 | $86,071 | ||
| Total costs accounted for | $3,604,596 | $1,539,609 | $2,130,252 | ||
Add Answer to:
Bisson Furniture uses a process cost system to account for its
chair factory. Beginning inventory consisted...
Bisson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted...
Bisson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor) with a cost of $124,800 materials and $104,500 conversion. 58,000 units were started into production during the month with material costs of $1,537,000 and $2,124,375 of conversion costs. The ending inventory of 6,000 chairs was 100% complete as to materials and 40% complete as to labor. Required: HINT: Use the excel...
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weighted-average process costing method to account for costs of
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obtained for the Assembling Department for the month of April.
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Kansas Supplies is a manufacturer of plastic parts that uses the
weighted-average process costing method to account for costs of
production. It produces parts in three separate departments:
Molding, Assembling, and Packaging. The following information was
obtained for the Assembling Department for the month of April.
Work in process on April 1 had 103,000 units made up of the
following.
Amount
Degree of Completion
Prior department costs transferred in from the Molding
Department
$
135,960
100
%
Costs added by...
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Kansas Supplies is a manufacturer of plastic parts that uses the
weighted-average process costing method to account for costs of
production. It produces parts in three separate departments:
Molding, Assembling, and Packaging. The following information was
obtained for the Assembling Department for the month of April.
Work in process on April 1 had 75,000 units made up of the
following.
Amount
Degree of Completion
Prior department costs transferred in from the Molding
Department
$
192,000
100
%
Costs added by...
Adams Company uses the weighted average method in its process-costing system. Operating department for the last month appear below pertaining to the physi conversion costs (CC) h appear below pertaining to the physical flow of units, direct materials (DM), and og in its process-costing system. Operating data for the first processing % of completion DM 8 0% of completion: CC 50% Beginning WIP inventory Started into production during the month Ending WIP inventory Units 1.100 9.800 2.100 90% 3 How...
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