Question

Williams Manufacturing makes a safety device for the trucking industry. The company uses a process costing system and has only a single work-in-process department. The following information pertains to operations for the month of May: Percentage Units CompleteCosts Beginning WIP Inventory, May 1 1,400 Direct materials Conversion costs Units started in May Costs incurred in May: Direct materials Conversion costs 30% 80% $2,376 23,000 $93,645 $825.531 Ending WIP inventory, May 31 1000 Direct materials Conversion costs 75% 60% Required: Use the above information to complete the following Complete a Production Report for Wiliams Manufacturing Company using the Weighted Average Method. Also, show the flow of costs through the WIP T-Account making sure you are using proper account names, etc... Complete a Production Report for Wiliams Manufacturing Company using the FIFO Method. Also, show the flow of costs through the WIP T-Account making sure you are using proper account names, etc... UBMISSİON : uinl if narassany) with each T-Account. Points will be taken

Answer 1

Production Re Weighted Average Method) Unit Information Units to account for Units in beginning work in process inventory Units started in during the period Total Units to account for 1400 23000 24400 9 10 Equivalent Units Units accounted for Units Completed & Transferred Out (24400-1000) Units in ending work in process inventory (1000*75%) Total Units accounted for Equivalent units 12 Materials Conversion 23400 1000 600 (1000*60%) 24400 16 24150 24000 18 COST INFORMATION Costs to account for Costs in beginning work in process inventory Costs incurred during the period Total Costs to account for Total Materials Conversion 376 93645 94021 20 2376 825531 827907 919176 921928 Total Costs to account for Divided by Equivalent Units Cost per Equivalent Unit 94021 24150 3.89 827907 24000 34.50 38.39

28 29 30 31 32 Costs accounted for Costs Completed &Transferred out Costs remaining in ending work in process inventory Total Costs accounted for 898310 23618 921928.00 91101 2920 94021.00 807209 20698 827907.00 Work In Progress 34. 35 36 37 38 39 40 41 42 43 Beginning Inventory 898310 Finished Goods Inventory Direct Material Conversion 376 2376 Costs added during May Direct Material Conversion 93645 825531 23618 Ending Inventory Note; As drop down list is not given I have entered the wordings. If you have any doubt please ask

Production R FIFO Met 46 47 48 49 Unit Information Units to account for; Units in beginning work in process inventory Units started in during the period Total Units to account for 51 52 53 54 Units accounted for Units Completed & Transferred Out (24400-1000) Units in ending work in process Inventory Total Units accounted for Equivalent units 1000 57 58 59 Material Conversion Equivalent units of production Units % of Material EUP-Material % of Conversion :UP-Conversion 61 1,400 22,000 1,000 95,000 70.00% 100.00% 75.00% 980 22.000 750 23,730 20. 00% 100.00% 60.00% 280 Units to complete beginning goods in process Units started and completed (23400-1400) Units of ending goods in process Equivalent units of production 64 22,000 67 22,880

71 72 73 74 75 76 Direct Materials Conversion Cost per EUP Costs incurred this period Divided by equivalent units of production (EUP) Cost per EUP 93,645 23,730 3.95 825,531 22,880 36.08 Costs Charged to Production Costs of beginning goods in process 79 80 81 Direct materials Conversion Costs incurred this period 376 2,376 2,752 93,645 825,531 83 84 85 86 87 Direct materials Conversion Total costs to account for 919,176 921,928 Cost assignment and reconciliation Costs transferred out Cost of beginning goods in process Cost to complete beginning goods in process 89 90 91 92 2,752 Direct materials Conversion 3,867 10,103 13,970

93 94 95 96 97 98 Cost of units started and completed this period 86,818 793,780 Direct materials Conversion Total cost of goods finished this period Costs of ending goods in process 880,598 Direct materials Conversion Total costs accounted for 2,960 21,649 24,608 921,928 100 101 102 103 104 105 106 107 108 109 110 Work In Progress Beginning Inventory 897,320 Finished Goods Inventory 376 2,376 Direct Material Conversion 0 Costs added during May Direct Material 93,645 825,531 24608 Conversion Ending Inventory