ACCT 344 WEEK 2 HOMEWORK
ACCT 344 Week 2 Homework
ACCT 344 Week 2 Homework
1. Questions: Kali Manufacturing Inc. began the year with the following. Beginning work-in-process 20,000 20% completeTransferred to finished goods 60,000
Ending inventory 10,000 70% complete
Materials added at the beginning of the process
Required: Calculate the equivalent units for
a. material costs under the weighted average process cost method;
b. conversion costs under the weighted average process cost method;
c. material costs under the FIFO process cost method; and
d. conversion costs under the FIFO process cost method.
2. Questions: Glass Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for the current month are as follows…………………………Required Prepare a cost of production report for current month. Use Weighted Average process costing.
PRODUCT DESCRIPTION
ACCT 344 Week 2 Homework,
| Calculate the equivalent units for |
| a. material costs under the weighted average process cost method; |
| b. conversion costs under the weighted average process cost method; |
| c. material costs under the FIFO process cost method; and |
| d. conversion costs under the FIFO process cost method. |
| A. Equivalent Units for Materials = (60,000 + 10,000) * 1 = 70,000 (Total Materials Added at Beginning of Process) B. Equivalent Units for Labor = 60,000 + (10,000 * .70) = 67,000 C. Equivalent Materials = (20,000 * 0.00) + (40,000 + 10,000 * 1) = 50,000 D. Equivalent Units for Conversion = (20,000 * .8) + (40,000 + 10,000 * 70) = 63,000 |
| Summary of units in process | |||
| Beginning | 2,000 | ||
| Units started | 8,000 | ||
| In process | 10,000 | ||
| Completed | -5,500 | ||
| Ending | 4,500 | ||
| Equivalent units in process | Materials | Conversion | |
| Units completed | 5,500 | 5,500 | |
| Add: Equivalent units in ending inventory | 4,500 | 2,700 | |
| Equivalent units of Production | 10,000 | 8,200 | |
| Total costs to be accounted for | Materials | Conversion | Total |
| Beginning WIP | $15,000 | $6,450 | $21,450 |
| Current costs | $54,000 | $141,150 | $195,150 |
| Total costs in process | $69,000 | $147,600 | $223,290 |
| Costs per equivalent unit | $ 6.90 | $ 18.00 | $24.90 |
| Points Received: | 10 of 10 |
| Comments: |
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