Question

automatically. Ch 16 Quiz in Connect i Saved Microsoft Auto Update is ready ! 2 Required information [The following information applies to the questions displayed below.] Part 2 of 2 During April, the first production department of a process manufacturing system completed its work on 335,000 units of a product and transferred them to the next department. Of these transferred units, 67,000 were in process in the production department at the beginning of April and 268,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 89,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. 8 00:57:28 The production department had $960,300 of direct materials and $768,231 of conversion costs charged to it during April. Also, its April beginning inventory of $185,754 consists of $148,455 of direct materials cost and $37,299 of conversion costs. 1. Compute the direct materials cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 2. Compute the conversion cost per equivalent unit for April. (Round "Cost per EUP" to 2 decimal places.) 3. Using the weighted average method, assign April's costs to the department's output-specifically, its units transferred to the next department and its ding work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Answer 1

Solution:

D B A B E F G Units % Materials 335000 100% 890001 85% 424000 EUP- Materials % Conversion EUP- Conversion 335000 100% 335000 75650 35% 31150 410650 366150 Materials Conversion $148,455 $37,299 $960,300 $768,231 $1,108,755 Costs $805,530 410650 EUP 366150 $2.70 $2.20 Costs EUP 12 1 Required 1. & 2. 2 Equivalent Units of Production (EUP) - Weighted Average Method 3 4 Units completed and transferred out 5 Ending Work in Process - Units 6 Total units 7 Cost per equivalent unit of production 8 Cost of Beginning Inventory 9 Costs incurred during April 10 Total costs 11 = Equivalent units of production 12 Cost per equivalent unit of production (rounded to 2 decimals) 14 Total costs accounted for: 15 Direct Material - prior Period 16 Conversion - Prior Period 17 Direct Material - Current Period 18 Conversion - Current Period 19 Total Cost to Account for 20 Total costs accounted for: 21 Difference due to rounding cost/unit 22 Required 3. 23 Cost Assignment and Reconciliation 24 Cost of units transferred out 25 Direct materials 26 Conversion 27 Total cost transferred out 28 Costs of ending work in process 29 Direct materials 30 Conversion 31 Total cost of ending work in process 32 Total costs accounted for $148,455 $37,299 $960,300 $768,231 $1,914,285 $1,914,285 $0.00 Working EUP Cost per EUP Total cost 335000 $2.70 $904,500 335000 $2.20 $737,000 $1.641,500 $433,350 $353,100 EUP Cost per EUP Total cost 75650 $2.70 $204,255 31150 $2.20 $68,530 $272.785 $98,847 +$23,012 $1,914,285 $981,493 +$121,859

Working:

G B с D E F % Conversion 1 0.35 EUP-Materials =B4*C4 =B5*C5 =SUM(D4:05) Materials 148455 960300 =SUM(D8:09) =D6 =D10/D11 EUP- Conversion =B4E4 =B5 E5 =SUM(F4:F5) Conversion 37299 768231 =SUM(F8:F9) =F6 =F10/F11 Costs EUP A 1 Required 1. & 2. 2 Equivalent Units of Production (EUP) - Weighted Average Method 3 Units % Materials 4 Units completed and transferred out 335000 1 5 Ending Work in Process - Units 89000 0.85 6 Total units =SUM(B4:35) 7 Cost per equivalent unit of production 8 Cost of Beginning Inventory 9 Costs incurred during April 10 Total costs Costs 11 = Equivalent units of production EUP 12 Cost per equivalent unit of production (rounded to 2 decima 14 Total costs accounted for: 15 Direct Material - prior Period =D8 16 Conversion - Prior Period =F8 17 Direct Material - Current Period =D9 18 Conversion - Current Period =F9 19 Total Cost to Account for =SUM(B15:B18) 20 Total costs accounted for: =F32 21 Difference due to rounding cost/unit =B19-B20 22 Required 3. 23 Cost Assignment and Reconciliation 24 Cost of units transferred out EUP Cost per EUP 25 Direct materials =D4 =D12 26 Conversion =F4 =F12 27 Total cost transferred out 28 Costs of ending work in process EUP Cost per EUP 29 Direct materials =D5 =D12 30 Conversion =F5 =F12 31 Total cost of ending work in process 32 Total costs accounted for Working Total cost =B25*C25 =B26C26 =D25+D26 $433,350 $353,100 Total cost =B29*C29 =B30*C30 =D29+D30 $98,847 +$23,012 $981,493 + $121,859 =E27+E31