ACC 312 Study Guide - Midterm Guide: Regional Policy Of The European Union, Weighted Arithmetic Mean
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Work in ProcessInventoryââ¬âPlating | |
March 1 balance | 35,350 |
Transferred-in from Shaping | 43,200 |
Direct materials | 25,200 |
Direct labour | 22,000 |
Manufacturing overhead | 35,500 |
The direct materialsâ (rubber pads) are added at the end of theplating process. Conversion costs are incurred evenly throughoutthe process. Work in process of the Plating Department on March 1consisted of 1,200 racks. The $35,350 beginning balance of Work inProcesslong dashâPlating includes $21,600 ofâ transferred-in costand $13,750 of conversion cost. Duringâ March, 2,400 racks weretransferred in from the Shaping Department. The Plating Departmenttransferred 2,100 racks to finished goods inventory in March and1,500 were still in process on March 31. This ending inventory wasâ50% of the way through the plating process.
ip SurgeProtectors | |||
AssemblyDepartment | |||
Flow of Physical Unitsand Computation of Equivalent Units | |||
Flowof | EquivalentUnits | ||
Physical | Direct | Conversion | |
Flow ofProduction | Units | Materials | Costs |
Start | ?% Completed | ?% Completed | |
Requirement 2. Prepare the March productioncost report for the Plating Department.
Before we can start the production cost report we must firstcompute the Platingâ Department's equivalent units. â(Forentries with a zeroâ balance, make sure to enterâ "0" in theappropriateâ cell.)
Classic Accessories | ||||
Plating Department | ||||
Equivalent Unit Computations (Weighted-Average) | ||||
Flow of | Equivalent Units | |||
Physical | Transferred- | Direct | Conversion | |
Flow of Production | Units | in | Materials | Costs |
Units accounted for: | ||||
Total equivalent units |
Now we will begin the production cost report by completing thefirst half of the report. Compute the cost per equivalent unit.â(For entries with a zeroâ balance, make sure to enterâ "0"in the appropriateâ column.)
Classic Accessories | ||||
Plating Department | ||||
Production Cost Report (Weighted-Average) | ||||
Transferred- | Direct | Conversion | ||
in | Materials | Costs | Total | |
Cost per equivalent unit |
Complete the March production cost report by assigning the coststo units completed and transferred out and to ending inventory.â(Enter quantitiesâ first, then the cost per equivalentunit amounts in the same order as calculated in the preceding step.For entries with a zeroâ balance, make sure to enterâ "0" in theappropriateâ cell(s). Round your answers to the nearest wholeâdollar.)
Complete the March production cost report by assigning the coststo units completed and transferred out and to ending inventory.â(Enter quantitiesâ first, then the cost per equivalent unitamounts in the same order as calculated in the preceding step. Forentries with a zeroâ balance, make sure to enterâ "0" in theappropriateâ cell(s). Round your answers to the nearest wholeâdollar.)
âââ
Classic Accessories | |||||||||||
Plating Department | |||||||||||
Production Cost Report (Weighted-Average Method) | |||||||||||
Transferred- | Direct | Conversion | Total | ||||||||
in | Materials | Costs | Costs |
Save Accounting Table... | + | |||
Copy to Clipboard... | + |
Assignment of total costs: | |||||||||||||
x ( | + | + | ) | ||||||||||
x | |||||||||||||
x | |||||||||||||
x | |||||||||||||
Total cost accounted for |
Requirement 3. Journalize all transactions affecting the PlatingDepartment duringâ March, including the entries that have alreadybeen posted.
Record the journal entry for the cost of the units transferredin from the Shaping Department. â(Record debitsâ first, thencredits. Explanations are notâ required.)
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Record the directâ materials, directâ labour, and manufacturingoverhead assigned to the Plating Department.
ââ
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Prepare the journal entry to record the cost of units completedand transferred out.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Units to be accounted for: | |
Work in process, April 1 (materials 90% complete; conversion 80% complete) | 9,700 |
Started into production | 31,900 |
Total units to be accounted for | 41,600 |
Units accounted for as follows: | |
Transferred to next department | 27,600 |
Work in process, April 30 (materials 75% complete; conversion 50% complete) | 14,000 |
Total units accounted for | 41,600 |
Cost Reconciliation | ||
Cost to be accounted for: | ||
Work in process, April 1 | $ | 33,853 |
Cost added during the month | 110,428 | |
Total cost to be accounted for | $ | 144,281 |
Cost accounted for as follows: | ||
Work in process, April 30 | $ | 36,365 |
Transferred to next department | 107,916 | |
Total cost accounted for | $ | 144,281 |
Management would like some additional information about Cooperative San Joséâs operations. |
Required: |
1. | What were the equivalent units for the month? |
2. | What were the costs per equivalent unit for the month? The beginning inventory consisted of the following costs: materials, $22,989; and conversion cost, $10,864. The costs added during the month consisted of: materials, $74,928; and conversion cost, $35,500. (Round your answers to 2 decimal places.) |
3. | How many of the units transferred to the next department were started and completed during the month? |
4. | The manager of the Mixing Department stated, âMaterials prices jumped from about $2.10 per unit in March to $2.60 per unit in April, but due to good cost control I was able to hold our materials cost to less than $2.60 per unit for the month.â Should this manager be rewarded for good cost control? |
Yes No |
Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system. |
A hastily prepared report for the Mixing Department for April appears below: |