Question

Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,700 chairs. During the month, the firm completed 78,500 chairs, and transferred them to the Finishing Department. The firm ended the month with 11,200 chairs in ending inventory. There were 16,000 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 20% complete as to conversion costs, while ending work in process was 80% complete as to conversion costs.

Beginning inventory:

      Direct materials                    $24,800

      Conversion costs                  $35,900

Manufacturing costs added during the accounting period:

      Direct materials                  $184,250

      Conversion costs                 $278,058

What are the equivalent units of production for conversion costs IF the Weighted Average method had been used
What are the direct materials equivalent units if FIFO is used?
What is the cost per unit for direct materials if FIO is used?
What is Total Cost per unit if FIFO is used
What is the total cost of those units that were in our beginning inventory (amount that is transferred to the next department)?
This is the Assembly department and the next department is the Finishing Department. What are the total transferred in costs for the Finishing department?
What is the ending Inventory for the Assembly department?

Answer 1

х X 2-- Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View ♡ X J1 А B с D E F H 1 J 1 2 COMFORT CHAIR COMPANY FOR ASSEMBLY DEPARTMENT PRODUCTION COST REPORT 3 4 5 6 Beginning WIP Started during the month UNITS 16,000 73,700 89,700 7 8 9 10 Units Transferred out Units Completed during the month 11 78,500 11,200 89,700 12 13 14 Statement of Equivalent Unit 15 16 MATERIALS 16,000.00 CONVERSION 3.200.00 17 100% 20% UNITS 16,000 73,700 89,700 18 19 20 Units Introduced Beginning Inventory Total Units Introduced Units to Account for Further Processed & Transferred From Beginning Inventory From Current Year Input (89,700-11.200-16,000) Ending Inventory Total Units Accounted for 21 16,000 22 62,500 0% 100% 100% 80% 100% 80% 12,800.00 62,500.00 8.960.00 84,260.00 62,500.00 11,200.00 73,700.00 23 11,200 24 89,700 25 26 27 If the Weighted Average Method has been used: Direct Materials Conversion Cost 100% 80% 28 78,500 11,200 89,700 Sheet29 Sheet30 Sheet31 78,500.00 8,960.00 87,460.00 29 Sheet23 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet32 Ready BO. 100% - 6:30 AM 21-Sep-20

х 95 Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Page Layout Data Review View ♡ X X A48 A B с D E F H 1 J 30 31 COST OF MATERIALS (S) 32 33 Cost added during the month No. of Equivalent Units 34 184,250.00 73,700.00 2.50 35 Cost of Materials per unit 36 37 CONVERSION COST (S) 38 39 Conversion Cost No. of Equivalent Units 40 278,058.00 84,260.00 3.30 41 Conversion cost per unit 42 43 44 Cost to Account For Beginning WIP Current Year's Input Materials 24,800.00 184,250.00 209,050.00 Conversion Cost 35,900.00 278,058.00 313,958.00 Total 60,700.00 462,308.00 523,008.00 45 46 Total Cost to Account For 47 48 49 50 51 52 53 54 55 56 57 58 Sheet23 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 Ready BO. 100% - 6:31 AM 21-Sep-20

х Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ X Page Layout fe A78 A B с D E F G H 1 J 59 60 Cost Accounted For 61 62 Cost Transferred Out For 16,000 units : 63 64 EUP C.P.U AMOUNT (S) 65 From Opening WIP Direct Materials Conversion Cost ($35,900 + (12,800 x $3.30)) Total Cost of Units Transferred of Opening WIP 16,000 16,000 AMOUNT 24,800 78,140 66 67 102,940.00 68 69 70 71 72 Add: From Current Month's Input : Direct Materials Conversion Cost Total Cost of Units Transferred from Current Month's Input 62,500 62,500 2.50 3.30 156,250.00 206,250.00 73 74 362,500.00 75 76 Total Cost of Units Transferred to Finishing Department 465,440.00 77 78 Cost of Ending WIP For 11,200 Units : 79 80 EUP AMOUNT (S) 81 Direct Materials Conversion Cost 11.200 8,960 C.P.U 2.50 3.30 AMOUNT 28,000.00 29,568.00 82 Cost Apportioned to Ending WIP 57,568.00 83 84 85 Total Cost Accounted For 523,008.00 86 87 Sheet23 Sheet24 88 KN Ready Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Sheet31 Sheet32 BO 100% - 6:32 AM 21-Sep-20

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