X. Preparation of a process cost reportusing the ____________ costing method
A. Step 1 accounts for the_______________ units in a production process, department, or workcell during an accounting period.
B. Step 2 accounts for production duringthe period in terms of units:
1. Completed and _____________out.
2. In _____________ inventory.
3. In total accounted for, whichmust match the total in Step 1.
C. Step 3 accumulates all directmaterials costs and conversion costs for __________ inventory andthe current period in the Total Costs column
D. Step 4 computes the cost perequivalent unit for direct materials costs and conversion costs by____________ the total of these costs by their respectiveequivalent units.
E. Step 5 assigns direct materialsand conversion costs to the:
1. Units ______________ andtransferred out.
2. Units in ____________inventory.
X. Preparation of a process cost reportusing the ____________ costing method
A. Step 1 accounts for the_______________ units in a production process, department, or workcell during an accounting period.
B. Step 2 accounts for production duringthe period in terms of units:
1. Completed and _____________out.
2. In _____________ inventory.
3. In total accounted for, whichmust match the total in Step 1.
C. Step 3 accumulates all directmaterials costs and conversion costs for __________ inventory andthe current period in the Total Costs column
D. Step 4 computes the cost perequivalent unit for direct materials costs and conversion costs by____________ the total of these costs by their respectiveequivalent units.
E. Step 5 assigns direct materialsand conversion costs to the:
1. Units ______________ andtransferred out.
2. Units in ____________inventory.
Related questions
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 | |||||||||
| Equivalent units of production (EUP) weighted averagemethod | |||||
| Units | % Materials | EUP â Materials | % Conversion | EUP Conversion | |
| (Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1 | |||||
| (Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1 | |||||
| Total units | |||||
| Cost per equivalent unit of production | Materials | Conversion | |||
| (Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1 | |||||
| (Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1 | |||||
| Totalcosts | Costs | Costs | |||
| Divide Equivalent units production | EUP | EUP | |||
| Cost per equivalent unit of production | Materials | Conversion | |||
| Totalcosts | Costs | Costs | |||
| DivideEquivalent units of Production | EUP | EUP | |||
| Costper equivalent unit of production | |||||
| Total costs accounted for: | |||||
| Cosof units transferred out: | EUP | Cost per EUP | Total cost | ||
| Directmaterials | |||||
| Conversion | |||||
| Totalcosts transferred out |
Costs of endingWIP EUP Cost perEUP Total Cost
Directmaterials _____ $______ ______
Conversion ______ $_______ _______
Total cost of ending WIP
Total costs accounted for
| Total costs to account for: | |||||
| (Cost transferred out/costs incurred this period/cost ofending work in process/ cost of beg. work in process) - Select1 | |||||
| (Cost transferred out/costs incured this period/cost ofending work in process/ cost of beg. work in process) - Selecet1 | |||||
| Total costs accounted for: | |||||
| Total costs accounted for: | |||||
| Difference due to rounding costs/unit: | |||||
| Unit reconciliation: | |||||
| (Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period) | |||||
| (Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period) | |||||
| (extra row - ignore) | |||||
| Total units to acount for: | |||||
| Total units accounted for: | |||||
| Units completed & transferred out | |||||
| Ending Work in process - units | |||||
| Total units accounted for: |
Tamar Co. manufactures a single product in one department. Alldirect materials are added at the beginning of the manufacturingprocess. Conversion costs are added evenly throughout the process.During May, the company completed and transferred 25,200 units ofproduct to finished goods inventory. Its 3,600 units of beginningwork in process consisted of $20,400 of direct materials and$248,940 of conversion costs. It has 2,700 units (100% completewith respect to direct materials and 80% complete with respect toconversion) in process at month-end. During the month, $677,100 ofdirect material costs and $2,350,260 of conversion costs werecharged to production.
1. Prepare the company's process cost summary for May usig theweighted- average method. (Charts before question)
2~
Prepare the journal entry dated May31 to transfer the cost of completed units to finished goodsinventory. (Do not roundintermediate calculations. Round your final answer to the nearestwhole dollar.)
JournalEntry Worksheet
- Record the transfer of goods tofinished goods inventory.
