ACCT 1208 Midterm: EXAM
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Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April.
Work in process on April 1 had 75,000 units made up of the following:
Amount | Degree of Completion | |||||
Prior department costs transferred in from the Molding Department | $ | 192,000 | 100 | % | ||
Costs added by the Assembling Department | ||||||
Direct materials | $ | 120,000 | 100 | % | ||
Direct labor | 43,200 | 60 | % | |||
Manufacturing overhead | 27,600 | 50 | % | |||
$ | 190,800 | |||||
Work in process, April 1 | $ | 382,800 | ||||
During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs:
Direct materials | $ | 576,000 | |
Direct labor | 216,000 | ||
Manufacturing overhead | 113,400 | ||
Total costs added | $ | 905,400 | |
Assembling finished 300,000 units and transferred them to the Packaging Department.
At April 30, 150,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at April 30 was as follows:
Direct materials | 90 | % |
Direct labor | 70 | |
Manufacturing overhead | 35 | |
Required:
a. Prepare a production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)
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Exercise 16-15 Weighted average: Completing a process costsummary LO C3
The following partially completed process cost summary describesthe July production activities of Ashad Company. Its productionoutput is sent to its warehouse for shipping. All direct materialsare added to products when processing begins. Beginning goods inprocess inventory is 20% complete with respect to direct labor andoverhead. Ending work in process inventory is 60% complete withrespect to conversion. |
Equivalent units of production | Direct Materials | Direct Labor | Factory Overhead | |||
Units transferred out | 127,000 | 127,000 | 127,000 | |||
Units of ending goods in process | 15,000 | 9,000 | 9,000 | |||
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Equivalent units of production | 142,000 | 136,000 | 136,000 | |||
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Costs | Direct Materials | Direct Labor | Factory Overhead | |||
Costs of beginning goods in process | $ | 38,500 | $ | 1,400 | $ | 2,800 |
Costs incurred this period | 856,100 | 168,600 | 337,200 | |||
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Total costs | $ | 894,600 | $ | 170,000 | $ | 340,000 |
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Units in beginning goods in process (all completed during July) | 8,000 |
Units started this period | 134,000 |
Units completed and transferred out | 127,000 |
Units in ending goods in process | 15,000 |
Prepare its process cost summary using the weighted-averagemethod. (Round "Cost per EUP" to 2 decimalplaces.) |
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