ADM 3346 Lecture 5: Chapter 17

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greenscorpion188

7 Feb 2017

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Each unit receives the same or similar amounts of: dm cost, dl costs, moh. # units of ouput from the production process. Each unit of product is assigned the same average cost. Conversion costs are added equally along the production process: conversion costs are all other costs than direct materials which include manufacturing labour, indirect materials and all other indirect costs. Takes the quantity of each input in units completed and in unfinished units of wip and . Converts the quantity of input into the amount of completed output units that could be produced with that quantity of input. 60 units @ 25% completed = 15 eu. Weighted average cost= all costs in the wip account total equivalent units of work done to date. Calculates the average eu cost of the work done to date regardless of when the work was done.

Related Questions

Carolina Manufacturing builds dog creates. Each dog create passes through the Assembly Department and the Quality Dept. You only need to look at the Assembly Department for this problem. The process accounting system at Carolina. has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Conversion costs are added evenly during the process. When the Assembly Dept finished work on each dog crate, it is immediately transferred to Quality.

Carolina uses the Weighted Average Cost Method of process costing. Data for the Assembly Department during July 2018 is:

Physical Units Direct Conversion
(Dog Crates) Materials Costs

Work-in-process, July 1* 7,000 $1,325,000 $505,500
Started during July 2018 25,000
Completed during July 2018 31,000
Work-in-process July 30** ?
Total costs added during
July 2018 $4,750,000 $2,678,000

*Degree of completion: DM 60%; CC 70%
**Degree of completion: DM 80%; CC 90%

You will need to complete the following:

a) Compute equivalent units in the Assembly Dept.

b) For each cost category, calculate the cost per equivalent unit.

c) Assign total costs to units completed and transferred out and to units in ending Work in Process

d) Prepare the journal entry to move costs from WIP-Assembly Department to the WIP- Quality Department

blushmole199

Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials, and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted−average costing.

Data for the Assembly Department for June 2017 are:

Work in process, beginning inventory 380 units
Direct materials (100% complete)
Conversion costs (60% complete)
Units started during June 950 units
Work in process, ending inventory: 150 units
Direct materials (100% complete)
Conversion costs (80% complete)

Costs for June 2017:
Work in process, beginning inventory:
Direct materials $91,000
Conversion costs $137,500
Direct materials cost added during June $604,000
Conversion costs added during June $401,000

What are the equivalent units for direct materials and conversion costs, respectively, for June? (Round final answers to the nearest unit.)

cerisecrow273

Be Safe, Inc. manufactures car seatsin its Dallas plant. Each car seat passes through the Assembly Deptand the Testing Dept. This problem focuses on the Assembly Dept.the process-costing system at Be Safe, Inc. has a singledirect-cost category (direct materials) and a single indirect-costcategory (conversion costs). Direct materials are added at thebeginning of the process. Conversion costs are added evenly duringthe process. When the Assembly Dept finished work on each car seat,it is immediately transferred to Testing.

Be Safe, Inc. uses the FirstIn First Out Method of process costing.Data for the Assembly Dept for September 2014 is:

PhysicalUnits Direct Conversion

(CarSeats) Materials Costs

Work-in-process, Sep1* 5,000 $1,250,000 $402,750

Started during Sep2014 20,000

Completed during Sep 2014 22,500

Work-in-process Sep30** 2,500

Total costs added during

Oct2009 $4,500,000 $2,337,500

*Degree of completion: DM ?%; CC60%

**Degree of completion: DM ?%; CC70%

1.For each cost category; compute equivalent units in theAssembly Dept. Show

physical units in the first column of the schedule.

2. For each cost category, summarize total Assembly Dept costsfor Sep 2014 and

calculate the cost per equivalent unit.

3. Assign total costs to units completed and transferred out andto units in ending Work in Process

4. Prepare the journal entry to move costs from WIP-AssemblyDept to theWIP-

Testing Department.

blushmanatee276

ADM 3346 Lecture 5: Chapter 17

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