Question

17. (16 points) The Hacking Department uses a process cost accounting system and a weighted-average During June, $205,000 of direct materials costs and $165,000 in conversion cost flow assumption. costs were charged to the department. The beginning work in process inventory was $98,000 on June 1, comprised of $65,000 of direct materials costs and $33,000 of conversion costs. Other data for the month of June Beginning work in process inventory, 6/1 Units completed and transferred out Ending work in process inventory, 6/30 35,000 units 90,000 units 30,000 units Ending work in process inventory is 100% complete as to materials, and 30% complete as to conversion costs. Required: For the Hacking Department for the month of June, calculate the the ending work in process inventory and the units transferred out, and complete the cost reconciliation completed for you costs per equivalent unit and the costs of cells have been Show your calculations by neatly completing the tables provided on the following poge. Some

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					35,000
Add: Units Started in Process					85,000
Total Units to account for:					120,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed					90,000
Ending Work in Process					30,000
Total Units to be accounted for:					120,000
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units started and completed			90000	100%	90,000	100%	90,000
Ending Work in Process			30000	100%	30,000	30%	9,000
Total Equivalent units			120000		120,000		99,000
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Beginning work in Process				65,000		33,000
Cost Added during May				205,000		165,000
Total Cost to account for:				270,000		198,000
Total Cost to account for:						468,000
COST PER EQUIVALENT UNIT:
				Material		Conversion
Total cost added during the year				270,000		198,000
Equivalent Units				120,000		99,000
Cost per Equivalent unit				2.25		2
TOTAL COST ACCOUNTED FOR:
Units started and Transferred out (90000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				90,000	2.25	202500
Conversion Cost				90,000	2	180000
Total Cost of Units completed and transferred out:						382500
Ending Work in process (30000 units)
				Equivalent unit	Cost per EU	Total Cost
Material				30,000	2.25	67500
Conversison Cost				9,000	2	18000
Total cost of Ending Work in process:						85,500
Total cost accounted for:						468,000
			Material	convrsion
Cost per equivalent unit			2.25	1
Ending work in process			$85,500
Cost of Goods transferred out: $ 382,500
Cost reconciliation Statement:
Cost to be accounted for:
Cost of Beginning Wip				98000
Current cost incurred				370000
Total cost to be accounted for				468000
Cost accounted for:
Cost of goods completed				382,500
Cost of Ending WIP				85,500
Total cost accounted for:				468,000