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SOLUTION

:
1. ANS:
Landers Company
Schedule of Equivalent Units for
Fifo and Weighted Average
May 31, 20X5
FIFO
Beginning Work In Process

10,000

Units Started
Units to Acct. For
Beginning Work In Process
Started & Completed

120,000
130,000
10,000
90,000

Ending Work in Process
Units Accounted For

30,000
130,000

(a)
BWIP
S&C
EWIP
EUP

FIFO
Mat.
0
90,000
30,000
120,000

DIF: Moderate

CC
7,500
90,000
9,000
106,500

Weighted Average
Beginning Work In
Process
Units Started
Units to Acct. For
Transferred Out
Ending Work in
Process
Units Accounted For

(b) Weighted Average
Mat.
TO
EI
EUP

100,000
30,000
130,000

10,000
120,000
130,000
100,000
30,000
130,000

CC
100,000
9,000
109,000

OBJ: 6-3,6-4

2. ANS:
Landers Company
Schedule of Average Cost Per Unit
FIFO and Weighted Average
May 31, 20X5
(a) FIFO
Mat.
Costs $33,000
Eq Units 120,000
$.275/eq unit
Total cost/eq. unit

DIF: Moderate

CC
$109,695
106,500
$ 1.03/eq
unit
$ 1.305/eq
unit

(b) Weighted Average
Mat.
CC
$ 35,100
$111,725
130,000
109,000
$ .27/eq
$ 1.025/eq
unit
unit
$ 1.295/eq
unit

OBJ: 6-3,6-4

Cost Accounting Foundations and Evolutions

Kinney, Raiborn

270 $ 17.27 = 9.305 = Total costs transferred out 117.000 x $1.725 $ 11.03 = $ Total costs accounted for (b) Weighted Average Completed 100.03) = $ Started and Completed 90.520 $146.855 8.3.130 7.025 = Total costs accounted for DIF: Difficult 4.825 $129.450 $129.225 $ 17.500 $ 8.500 x $1.275 = 9.325 $146.000 x $ .000 x $1.305 Ending Work in Process 30.100 9.250 9.000 x $1.000 x $1.295 = Ending Work in Process 30.000 x $ . 20X5 (a) FIFO Beginning Work in Process To complete (7.6-4 Cost Accounting Foundations and Evolutions Kinney. Raiborn . ANS: Landers Company Schedule of Assigned Costs FIFO and Weighted Average May 31.825 OBJ: 6-3.

600 500 18.200 OBJ: 6-3.4.6-4 Cost Accounting Foundations and Evolutions Kinney.000 Conversion Costs 3.100 2.600 400 18.600 400 18. 17.100 Materials 100 16.000 Cooking Department Materials Beginning Work in Process Transferred from Cooking Ending Work in Process TOTAL EUP 0 12. Cooking Department Materials Transferred Out Ending Work in Process TOTAL EUP 17.600 2.400 15.600 1.150 12.600 400 17.400 19.500 Conversion Costs 17.600 500 17.540 Packaging Department Transferred In Transferred Out Ending Work in Process TOTAL EUP b.440 18.000 Conversion Costs 17.100 Materials. Raiborn . 17.440 17. ANS: a.190 Packaging Department Transferred In Beginning Work in Process Transferred from Cooking Ending Work in Process TOTAL EUP DIF: Difficult 0 16.100 1.100 Conversion Costs 200 16.600 400 17.

00 CC 20.000 units x $5.000 = 10.000 Unit Cost $184.000 End WIP MAT CC 20.042 CC = 2.000 5.Eq-Begin 20.000 End WIP Dept 1 = 5.70 20.975 COGM = $344.500 . ANS: a.160 Dept 1 = 5.5.000 2.200) 20.000 (1.000 $34.000 $50.000 units x $8.450 = $4.000 = $14.000 Eq-End WIP 25.00 CC = 2.000 COGM = $344.6-4 Cost Accounting Foundations and Evolutions Kinney. Raiborn .000 = $8.70 20.00 23.$50.000 20.000 (2.717 = $40.70 = $40.000 units x $4.210 = 9.042 25.000 = $294.800 $104.500 .050 = $8.000 0 20.000 2.160 = $294.340 b.975 22.000 0 0 EP-WA 23.000 x $8. FIFO inventory assumption Dept 1 MAT Complete Eq-End WIP . Weighted average inventory assumption Dept 1 20.500 DIF: Moderate OBJ: 6-3.000 $34.000 Complete 5.000 $109.950 $50.000 EP-WA Unit Cost $201.00 20.000 = $1.000 = $1.000) 20.000 = $5.000 22.000 20.800 = $14.$50.

500.00 2.000) 43.000) 17.00 2. Materials 46.000 22.500 9. WIP-FIFO 6.000 (6. ANS: a.000 = $0. Conversion Costs 46. FIFO 16.000 x $0.30 CC = $2.900 Since the material in the second department goes in at the 50 percent point and the ending WIP inventory is only at the 20 percent point.00 Kinney.6-4 7.60 = $ 600. ending WIP = Equiv.000 = $0.500 3. WIP-WA PD CC Material 16.000 Mat = $4.000 = $0.000 TI = $0.000 + 46.000) 43.000 0 16.000 (10.800 18.10 Mat = $4.61 = $ 660.000 6.000 units in ending WIP.800 = $0.420.000 TI = $1. c.000 End.800 22.100.000 (4. average .61 17.3.100 = FIFO $16.11 Conv.6.3.000) 47.000 = Cost Accounting Foundations and Evolutions $16.800 16.400.500 = 12.000 16.00 $3. Raiborn . given that units started plus units in beginning WIP are equal to units complete plus ending WIP 10.500 2.500 PD Mat 44. WIP = Equiv.000 20.000 (3.200 = $0.000) 46. prod.30 CC = $10.200 20.10 = 4. units complete is the same as the equivalents of material 44.420 .400 (3.60 End.500 44.500 12.000 x $0.11 = 4.440.000.00 Cost of Goods Complete WA $19. begin.000) 18.500 b.Equiv.44.000 x $0. cost 16. DIF: Moderate OBJ: 6-3.00 6.500 CC 44.000 4.500 .00 $3.000 Unit Cost Average Unit Cost FIFO TI = $620 + 1.000 0 16.000 + 10.000 x $0.420 . ANS: Equivalent production Units complete + Equiv.320.000 (8.00 $19.500 0 0 44. prod.

600 Mat 33.6-8 Cost Accounting Foundations and Evolutions Kinney.100 e. 33.200 b.780 420 x $9 = $3.900 COGM = $396.780 DIF: Moderate OBJ: 6-3.DIF: Moderate OBJ: 6-3.900 . 10.600 x $9 1.75.18.500 x $5 10. TI Complete + Equiv WIP + Normal Sp + Abnor Sp 33.500 10.200 CC 33.400 15.600 10.500 x $1 4.680 x $9 $302.600 4.200 x $3 $52.600 10.200 X = $231.500 1.000 .900 = $212.520 d.600 $75.200 1. $5 = $18.680 420 46.680 420 39.120 $317.680 420 46.700 $396.900 + X 46.900 x $3 $231.6-4 MSC: 15-20 min 8. ANS: a.500 1.520 c.780 = $317.200 x $5 46.200 x $1 39. ABN = 420 x $9 = $3.600 .900 TC = 46. Raiborn .3.000 46.500 12.200 119.

80 1. ANS: TI MAT 6.268 = $151.650 0 100 0 6.Beg FIFO 61.00 13.410 6.290 x $35.2. Raiborn .290 units Mat CC Complete + End + Ab Sp .18.540 Mat = CC = WIP Material CC $1.540 = 16.268 COGM = $171.080 Unit Cost End WIP DL MOH TI 600 x $3.800 $ 2.6-8 10.710 units Abnormal Sp = 8.180 .000 12.000 Loss = 1.6.80 200 x $9.9.650 1.040 2.513 .000 x $22.40 30 x $8.750 MOH 6.290 $942.500 $18.369 Kinney.000 67.00 = = = Abnormal Loss DL MOH TI 60 x $3.000 1.000 1.650 600 100 60 7.000 16.500 100 200 8.640 13.000 71.290 FIFO 61.000 x $13.750) 71.00 = = = $ 2.290 (2.500 x $9.040 45.290 74.290 78.17 $352.065 DIF: Moderate OBJ: 6-3.180 $ 204 264 1.Ave .450 Complete + end + normal + abnormal DL 6.650 300 100 30 7. ANS: Normal Sp = 11% x 61.290 (11.17 $35.17 Cost Accounting Foundations and Evolutions = $22.00 12.40 300 x $8.000 .17 158.000 = 6.040 $510.710 = 1.000) 67.480.

15 $1.000 x .50 = $ 4.Beg WIP (1.100 24.000 0 1.500 1.645 = $ 3.920 $ 8.175 COGM = $120.800 .672.000 400 25.60 CC = $78.469 = $220.000 22. 6-8 Cost Accounting Foundations and Evolutions Kinney.369 = $2.469 COGM = $247.400 $112.50 3.000 End WIP 4.040 .116.120 x $3.000) 23.15 900 x $0.575 .480 22.706 Abn Loss 400 x $3.65) End WIP = 22.080 23.470 2.510.800 1.COGM = $2.220 189 2.100 TI = $154.59 400 x $5.15 30.674 .060 $3.591 DIF: Moderate OBJ: 6-3.000 2.3.500 x $5.100 = $ $0.60 1.500 320 26.59 + Abnormal 400 30.175 531 $23.000 4.800 x 4) Mat = $38.800 + End WIP 24.59 $23.000 900 880 CC = $ 15.500 = $ 5.800 = $ 1.470 (1.000 . 1 Complete Mat CC 22.6-8 11. Raiborn .05 320 x $0.120 (650) (2.399 26.23.45. ANS: a.400 b. 2 TI Mat CC Mat = $ 77.120 23.8.706 .775 25.499 DIF: Moderate OBJ: 6-3.500 = $ $3.05 Complete + End WIP + Normal 24.800 x $1.120 24.

000 27.6-8 Cost Accounting Foundations and Evolutions Kinney.520 Ending WIP Material CC Abnormal Spoilage Material CC 20.580 .200 x $5.688 = $1.200 FIFO Mat CC CC 152.6) $885.200 CC $338.000 x $1.334 = $1.97 9.720 = $1.520 171.580 $128.12.520 (1.97 152.200 = $5.000 x $5.000) 175.200 x .808 .334 Cost of Good Transferred 1.128.05 $335.874 $ 57.120 175.57.05 5.200 (6.460 10.05 14.253.000 5.067.894 DIF: Moderate OBJ: 6-3.580 $ 46.800) 169. ANS: Mat Units Complete + Equivalents Ending WIP + Abnormal Loss = Equivalent Production-WA = Equivalent Begin WIP = Equivalent Production-FIFO Unit Costs: WA Mat $915.520 x $1.720 (9. Raiborn .97 171.97 $101.000 20.088 169.120 = $5.000 9.200 181.000 14.05 181.

065 17.700 $1.51 = 1.500 11.22 $ 3.500 1.000 $64.000 $11.000 5.367 10. In Fruit Acctble.27 Cost Assignment: EWIP 1.000 9.17.000 Costs: TI $ 9.27 = Spoilage 1. For TI 9.600 Total accounted for DIF: Moderate 170. Raiborn .51 = 980 x $10.89 = 1.000 1.000 0 0 9.055 $ 1.475 $ 23.020 x $10.89 BWIP Current EUP Per unit Fruit Container $10.700 Container 9.000 $113.51 $ 0 11.13.27 = Transferred Out $210.700 12.020 980 11.700 BWIP Trans.6-8 Cost Accounting Foundations and Evolutions Kinney.400 $22.700 x $1.500 54.055 .000 11.000 CC 9.000 98.600 .000 $10.000 11.000 11.000 x $5.080 OBJ: 6-3.700 $5.000 1.000 x $1.465 = $210.700 Transferred Out EWIP Abnormal Spoilage Fruit 9.23.700 1.465 CC $ 15.510 10.100 11.000 $1. ANS: Delightful Yogurt Company Cost Report October 31.700 x $5.700 1.000 1.890 5.89 = 1.200 11. 20X5 5.213 9.

600 11.500 15.72 Conversion Costs: $175.500 43.250 0 23.6-8 Cost Accounting Foundations and Evolutions Kinney.34 Cost Assignment: Ending Work in Process 15.72 = 8.500 x $9.500 8.34 = Abnormal Spoilage 2.850 = $7.650 174.000 0 2. ANS: BI 8.000 x $1.650 = Total costs accounted for DIF: Moderate $ 25.250 x $7.800 60.850 Material: $50.995 $ 284.000 = Accountable for 43.000 OBJ: 6-4.500 15.000 6. For 0 11.555 $ 86.14. Raiborn .000 = $1.06 = Cost Transferred Out $284.355 22.000 Hocking Company Cost Report March 31.86. 20X8 Material 8.500 29.000 .355 .000 11.000 2.22.000 + Started 35.000 CC 1.000/29. Acctd.000 BWIP S&C EWIP Norm Abnorm.000/23.

00 = Transferred Out $284.000/30.000 19.000 + Started 35.500 175.572 $ 284.000/37.500 8.27 = Abnormal Spoilage 2.250 Material: $64.250 0 30.000 2.000 = $1. ANS: BI 8.85.000 0 2.500 = Total costs accounted for DIF: Moderate $25.500 x $9.000 CC 19.000 6.928 22.250 = $ 7.6-8 Cost Accounting Foundations and Evolutions Kinney.000 OBJ: 6-3.250 x $7.950 59.978 $ 85.000 . 20X8 Material Transferred Out Ending Work In Process Normal Spoilage Abnormal Spoilage 2.000 Hocking Company Cost Report March 31.500 Accounted For 19.500 15.000 = Accountable for 43.15.22.500 43.928 .73 Conversion Costs: $220.500 15.000 x $1.500 37.27 Cost Assignment: Ending Work in Process 15. Raiborn .73 = 8.