Work in Processââ¬âForming
Beginninginventory, October 1 26,482 Directmaterials 169,798 Conversioncosts 162,400 Endinginventory ?
The Forming Departmenthad 10,350 partially complete units in beginning work in processinventory. The department started work on 76,250 units during themonth and ended the month with 8,600 units still in work inprocess. These unfinished units were? 60% complete as to directmaterials but? 20% complete as to conversion work. The beginningbalance of $26,482 consisted of $21,470 of direct materials and$5,012 of conversion costs.
Requirement
Journalize the transfer of costs to the Finishing Department.?(Hint?: Complete the? five-step process costing procedureto determine how much cost to? transfer.)
We need to begin the? five-step process costing procedure byfirst summarizing the units to account for and computing theequivalent units.
Smithson Roping
Forming Department
Physical Flow of Units and Equivalent Units
Flow of
Equivalent Units
Physical
Direct
Conversion
Flow of Production
Units
Materials
Costs
Units to account for:
Units accounted for:
Total equivalent units
The next step is calculating the cost per equivalent unit.?(Round the cost per equivalent unit to the nearest?cen
Smithson Roping
Forming Department
Cost per Equivalent Unit
Direct
Conversion
Materials
Costs
Total
Cost per equivalent unit
Now we can calculate the total cost of the units completed andtransferred out and the ending work in process. ?(Enterquantities? first, then the cost per equivalent unit amounts in thesame order as calculated in the preceding step. Round your answersto the nearest whole? dollar.)
Smithson Roping
Forming Department
Assignment of Costs
Assign costs:
Direct Materials
Conversion Costs
Total
x (
+
)
x
x
Total cost accounted for
Work in Processââ¬âForming | |
| Beginninginventory, October 1 | 26,482 |
| Directmaterials | 169,798 |
| Conversioncosts | 162,400 |
| Endinginventory | ? |
The Forming Departmenthad 10,350 partially complete units in beginning work in processinventory. The department started work on 76,250 units during themonth and ended the month with 8,600 units still in work inprocess. These unfinished units were? 60% complete as to directmaterials but? 20% complete as to conversion work. The beginningbalance of $26,482 consisted of $21,470 of direct materials and$5,012 of conversion costs.
Requirement
Journalize the transfer of costs to the Finishing Department.?(Hint?: Complete the? five-step process costing procedureto determine how much cost to? transfer.)
We need to begin the? five-step process costing procedure byfirst summarizing the units to account for and computing theequivalent units.
Smithson Roping | |||
Forming Department | |||
Physical Flow of Units and Equivalent Units | |||
Flow of | Equivalent Units | ||
Physical | Direct | Conversion | |
Flow of Production | Units | Materials | Costs |
Units to account for: | |||
Units accounted for: | |||
Total equivalent units | |||
The next step is calculating the cost per equivalent unit.?(Round the cost per equivalent unit to the nearest?cen
Smithson Roping | |||
Forming Department | |||
Cost per Equivalent Unit | |||
Direct | Conversion | ||
Materials | Costs | Total | |
Cost per equivalent unit | |||
Now we can calculate the total cost of the units completed andtransferred out and the ending work in process. ?(Enterquantities? first, then the cost per equivalent unit amounts in thesame order as calculated in the preceding step. Round your answersto the nearest whole? dollar.)
Smithson Roping | |||||||||
Forming Department | |||||||||
Assignment of Costs | |||||||||
Assign costs: | Direct Materials | Conversion Costs | Total | ||||||
x ( | + | ) | |||||||
x | |||||||||
x | |||||||||
Total cost accounted for | |||||||||
Related questions
Units: | |||||||
| Work inprocess, December 1 (80% of the way through the process) | 5,000 | units | |||||
| Transferred-in from the Polishing and Cutting Department duringDecember | 32,000 | units | |||||
| Completedduring December | ? | units | |||||
| Work inprocess, December 31 (70% of the way through the process) | 8,000 | units | |||||
| Costs: | |||||||
| Work in process, December 1 (transferred-in costs, $32,000; directmaterials | |||||||
| costs,$20,400; and conversion costs, $37,220) | $89,620 | ||||||
| Transferredin from the Polishing and Cutting Department during December | 97,500 | ||||||
| Directmaterials added during December | 75,800 | ||||||
| Conversioncosts added during December | 90,800 | ||||||
Requirement 1. Summarize flow of physical units and computetotal equivalent units for three cost? categories: transferred-in,direct? materials, and conversion costs.
Brookman Semiconductors | ||||||
Photolithography Department | ||||||
Flow of Physical Units and Computation of Equivalent Units | ||||||
Flow of | Equivalent Units | |||||
Physical | Transferred- | Direct | Conversion | |||
Flow of Production | Units | in | Materials | Costs | ||
Units to account for | ||||||
Units accounted for: | ||||||
Total equivalent units | ||||||
Requirement 2. Summarize total costs to account for and computethe cost per equivalent unit for each cost category. ?(Round thecost per equivalent unit to the nearest? cent.)
Brookman Semiconductors | ||||
Photolithography Department | ||||
Cost per Equivalent Unit | ||||
Transferred- | Direct | Conversion | ||
in | Materials | Costs | Total | |
Cost per equivalent unit | ||||
Requirement 3. Assign total costs to units completed andtransferred to Finished Goods Inventory and units in December 31Work in Process Inventory. ?(Enter quantities? first, then the costper equivalent unit amounts in the same order as calculated in thepreceding step. Round your answers to the nearest whole?dollar.)
???
Brookman Semiconductors | |||||||||||
Photolithography Department | |||||||||||
Assignment of Costs | |||||||||||
Transferred- | Direct | Conversion | Total | ||||||||
in | Materials | Costs | Costs | ||||||||
Assignment of total costs: | |||||||||||||
x ( | + | + | ) | ||||||||||
x | |||||||||||||
x | |||||||||||||
x | |||||||||||||
Total cost accounted for | |||||||||||||
| Litres: | ||
| Beginning work in process inventory | 2,800 | litres |
| Started production | 4,620 | litres |
| Completed and transferred out to Packagingin March | 6,420 | litres |
| Ending work in process inventory (80% ofthe way through | ||
| the fermenting process) | 1,000 | litres |
| Costs: | ||
| Beginning work in process inventory($2,200 of direct | ||
| materials and $1,462 of conversioncost) | $3,662 | |
| Costs added during March: | ||
| Direct materials | 10,414 | |
| Direct labour | 950 | |
| Manufacturing overhead | 1,920 | |
| Total costs added during March | $13,284 |
1. | Fill in the time line for the Fermenting Department. |
2. | Summarize the flow of physical units and compute the totalequivalent units. |
3. | Summarize total costs to account for and compute the cost perequivalent unit for direct materials and conversion costs. |
4. | Assign total costs to unitsâ (litres): |
| a. Completed and transferred out to thePackaging Department b. In the Fermenting Department ending work inprocess inventory | |
5. | Whatis the average cost per litre transferred out of Fermenting intoâpackaging? Why would JohnsonJohnson âVineyard's managers want toknow thisâ cost? |
Requirement 1. Fill in the time line for the FermentingDepartment.
Start |
| Complete | Complete | |||||||||
Transferred out to Packaging | ||||||||||||
Requirement 2. Summarize the flow of physical units and computethe total equivalent units.
Johnson Vineyards | |||
Fermenting Department | |||
Flow of Physical Units and Computation of Equivalent Units | |||
Flow of | Equivalent Units | ||
Physical | Direct | Conversion | |
Flow of Production | Units | Materials | Costs |
Units to account for: | |||
Units accounted for: | |||
Total equivalent units | |||
Requirement 3. Summarize total costs to account for and computethe cost per equivalent unit for direct materials and conversioncosts. â(Round the cost per equivalent unit to the nearestâcent.)
Johnson Vineyards | |||
Fermenting Department | |||
Cost per Equivalent Unit | |||
Direct | Conversion | ||
Materials | Costs | Total | |
Cost per equivalent unit | |||
Requirement 4. Assign total costs to unitsâ (litres):
Now we can calculate the total cost of the units for a.completed and transferred out to the Packaging Department and b.the Fermenting Department ending work in process. â(Enterquantitiesâ first, then the cost per equivalent unit amounts in thesame order as calculated in the preceding step. Round your answersto the nearestâ cent.)
Johnson Vineyards | |||||||||
Fermenting Department | |||||||||
Assignment of Costs | |||||||||
Assign costs: | Direct Materials | Conversion Costs | Total | ||||||
a. | x ( | + | ) | ||||||
b. | |||||||||
x | |||||||||
x | |||||||||
Total cost accounted for | |||||||||
Requirement 5. What is the average cost per litre transferredout of Fermenting intoâ Packaging? Why would Johnson âVineyard'smanagers want to know thisâ cost?
First identify the labels to compute the average cost per litretransferredâ out, then compute the average cost per unit. â(Roundyour answer to the nearestâ cent.)
Avg. cost | ||||
/ | = | per litre |
/ | = |
Why would Johnson âVineyard's managers want to know thisâcost?
Managers will want to know this cost to compare it to their.................budgeted target costs cost per equivalent unitdirect material costs . They may also use the cost information when..................
.
