Cost Accounting 14e Chapter 4 Solutions

Chapter 4 Process Costing
Chapter 4
Process Costing
Solutions to Questions
4-1
A process costing system should be used in situations where a homogeneous product is produced on a continuous basis.
4-2
Job-order and processing costing are similar in the following ways:
1. Job-order costing and process costing have the same basic purposesto assign materials, labor, and overhead cost to
products and to provide a mechanism for computing unit product costs.
2. Both systems use the same basic manufacturing accounts.
3. Costs flow through the accounts in basically the same way in both systems.
4-3
Cost accumulation is simpler under process costing because costs only need to be assigned to departmentsnot
individual jobs. A company usually has a small number of processing departments, whereas a job-order costing system often
must keep track of the costs of hundreds or even thousands of jobs.
4-4
In a process costing system, a Work in Process account is maintained for each processing department.
4-5
The journal entry to record the transfer of work in process from the Mixing Department to the Firing Department is:
XXXX
Work in Process, Firing................................
XXXX
Work in Process,
Mixing................................................
4-6
The costs that might be added in the Firing Department include: (1) costs transferred in from the Mixing Department; (2)
materials costs added in the Firing Department; (3) labor costs added in the Firing Department; and (4) overhead costs added in
the Firing Department.
4-7
Under the weighted-average method, equivalent units of production consist of units transferred to the next department
(or to finished goods) during the period plus the equivalent units in the departments ending work in process inventory.
4-1

4-8
The company will want to distinguish between the costs of the metals used to make the medallions, but the medals are
otherwise identical and go through the same production processes. Thus, operation costing is ideally suited for the companys
needs.
Exercise 4-1 (20 minutes)

a. To record issuing raw materials for use in production:
4-2
Work in ProcessMolding Department

Work in ProcessFiring Department
Raw Materials
33,000
b. To record direct labor costs incurred:
Wages Payable
23,000
28,000
5,000
18,000
5,000
c. To record applying manufacturing overhead:

24,000
37,000
Manufacturing Overhead
61,000
d. To record transfer of unfired, molded bricks from the Molding Department to the Firing
Department:
67,000
67,000
e. To record transfer of finished bricks from the Firing Department to the finished goods
warehouse:
Finished Goods
108,000
108,000
f. To record Cost of Goods Sold:
Cost of Goods Sold
106,000
Finished Goods
106,000
4-3

Weighted-Average Method
Units transferred out ..............................

Work in process, ending:
30,000 units 70%..............................
30,000 units 50%..............................
Equivalent units of production.................
Equivalent Units
Conversio
Materials
n
410,000
410,000
21,000
431,000
4-4
15,000
425,000

1.
Material
s
Overhea
d
Labor
Cost of beginning work in
$ 23,62
process inventory.................. $ 14,550
0 $118,100
Cost added during the period...
88,350 14,330
71,650
Total cost (a)............................ $102,900 $37,950 $189,750
Equivalent units of production
(b).........................................
Cost per equivalent unit (a)
(b).........................................
2.
1,200
1,100
1,100
$85.75
$34.50
$172.50
Cost per equivalent unit for

$ 85.75
materials.......................................
Cost per equivalent unit for labor. . . .
34.50
Cost per equivalent unit for
172.50
overhead.......................................
$292.7
Total cost per equivalent unit...........
5
4-5

Ending work in process inventory:

Equivalent units of production...........
Cost per equivalent unit....................
Cost of ending work in process
inventory.......................................
Units completed and transferred out:
Units transferred to the next
department...................................
Cost per equivalent unit....................
Cost of units transferred out..............
Materia
ls
Conversi
on
300
$31.56
100
$9.32
$9,468
1,300
$31.56
$41,02
8
4-6
Total
$10,40
$932
0
1,300
$9.32
$53,14
$12,116
4

Baking Department
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process
inventory.............................................
Costs added to production during the
period..................................................
Total cost to be accounted for................
Costs accounted for as follows:
inventory.............................................
Cost of units completed and transferred
out.......................................................
Total cost accounted for.........................
$ 4,83
0
25,65
0
$30,48
0
$ 1,12
0
29,36 *
0
$30,48
0
*The cost of units completed and transferred out can be deduced as follows:
4-7
Cost of beginning
Costs added
Cost of ending
Cost of units
work in process + to production =work in process+completed and
inventory
during the period
inventory
transferred out
Cost of units
$4,830 + $25,650 = $1,120 + completed and
transferred out
Cost of units
completed and = $4,830 + $25,650 - $1,120
transferred out
Cost of units
completed and = $29,360
transferred out
4-8

1.
Material
s
Labor
Overhea
d

department................................. 790,000 790,000 790,000
Materials:
50,000 units 60% complete. . 30,000
Labor and overhead:
50,000 units 20% complete. .
10,000 10,000
Equivalent units of production....... 820,000 800,000 800,000
2.
Cost of beginning work in
process....................................
Cost added during the period.....
Total cost (a)..............................
(b)...........................................
Cost per equivalent unit (a)
(b)...........................................
Material
s
$
68,600
Labor
$
30,000
370,00
907,200
0
$975,80 $400,00
0
0
Overhea
d
$
48,000
592,00
0
$640,00
0
820,000 800,000 800,000

$1.19
$0.50
4-9
$0.80

1 Equivalent units of production
.
Pulping
Conversi
on
146,00 146,000
0
Transferred to next department................

Ending work in process:
Pulping: 6,000 units x 100% complete....
Conversion: 6,000 units x 75% complete
Equivalent units of production..................
2 Cost per equivalent unit
.
Cost of beginning work in process.........
Cost added during the period................
Total cost (a)..........................................
Equivalent units of production (b)..........
Cost per equivalent unit, (a) (b).........
6,000
152,00
0
Pulping
$ 1,500
59,300
$60,800
152,000
$0.40
4,500
150,500
Conversi
on
$
400
22,100
$22,500
150,500
$0.1495
3 Cost of ending work in process inventory and units transferred

. out
Pulping Conversi
Total
4-10
Ending work in process

inventory:
Equivalent units of
production.........................
6,000
Cost per equivalent unit......
$0.40
Cost of ending work in
process inventory..............
$2,400
department....................... 146,000
$0.40
Cost of units completed and
transferred out.................. $58,400
4-11
on
4,500
$0.1495
$673
$3,073
146,000
$0.1495
$21,827
$80,227
Exercise 4-7 (continued)

4 Cost reconciliation
.
inventory
($1,500 + $400)..................................
period
($59,300 + $22,100)............................
inventory.............................................
out.......................................................
4-12
$ 1,900
81,400
$83,300
$ 3,073
80,227
$83,300

Work in ProcessMixing
Raw Materials Inventory
330,000
Work in ProcessBaking
Wages Payable
260,000
120,000
190,000
90,000
760,000
Finished Goods
980,000
4-13
330,000
380,000
280,000
760,000
980,000

1. Computation of equivalent units in ending inventory:
Material
Overhea
s
Labor
d
Units in ending inventory.....
1,500 1,500
1,500
Percent completed...............
90%
40%
40%
Equivalent units of
production.........................
1,350
600
600
2. Cost of ending work in process inventory and units transferred out:
Material
s
Equivalent units of
production...............
1,350
Cost per equivalent
unit.........................
$24.00
Cost of ending work
in process inventory $32,400
Units completed and transferred
out:
Units transferred to
the next department
................................
18,000
Cost per equivalent
$24.00
Labor
Overhea
d
600
600
$7.00
$14.00
$4,200
$8,400
18,000
$7.00
18,000
$14.00
4-14
Total
$45,000
unit.........................
Cost of units
completed and
transferred out........
$432,00 $126,00
0
0
$252,00
0
3. Cost reconciliation:
Total cost to be accounted for....................
inventory.............................................
out.......................................................
4-15
$855,000
$ 45,000
810,000
$855,000
$810,00
0

1.
Work in process, May 1.....................................

Started into production during the month.........
Total kilograms in process.................................
Deduct work in process, May 31.......................
Completed and transferred out during the
month.............................................................
Kilograms
of Cement
80,000
300,000
380,000
50,000
330,000
Equivalent Units
(EU)
2.
Material Conversio
s
n
Units transferred out........................... 330,000
330,000
Materials: 50,000 kilograms 40%. . 20,000
Conversion: 50,000 kilograms
5,000
10%...............................................
Equivalent units of production............ 350,000
335,000
4-16

Materia Conversi
ls
on
1.
Units transferred to the next process....... 300,000 300,000
Materials: 40,000 units 50%
complete............................................. 20,000
Conversion: 40,000 units 25%
complete.............................................
10,000
Equivalent units of production.................. 320,000 310,000
2.
Cost of beginning work in process...........
Cost added during the period..................
Total cost (a)...........................................
Equivalent units of production (b)...........
Cost per equivalent unit (a) (b)............
3
.
Material
s
Materia Conversi
ls
on
$ 56,60
0 $ 14,900
385,00
0 214,500
$441,60
0 $229,400
320,000 310,000
$1.38
$0.74
Conversi
on
4-17
Total
Equivalent units of
production (see above)...
Cost per equivalent unit
(see above).....................
process
inventory........................
20,000
10,000
$1.38
$0.74
$27,600
$7,400
$35,000

Units transferred to the
next process................... 300,000 300,000
Cost per equivalent unit
(see previous exercise).. .
$1.38
$0.74
Cost of units completed
$414,00
and transferred out.........
0 $222,000
$636,00
0
4-18

Materia Labor &
ls
Overhead
Pounds transferred to the Packing
490,00
Department during May*..............................
0
490,000
Work in process, May 31:
Materials: 20,000 pounds 100%
complete.................................................... 20,000
Labor and overhead: 20,000 pounds
90% complete............................................
18,000
510,00
Equivalent units of production.........................
0
508,000
* 30,000 + 480,000 20,000 = 490,000
Problem 4-13 (45 minutes)
1 Equivalent Units of Production
.
Materia Conversi
ls
on
Transferred to next department*............... 380,00 380,000
0
Materials: 40,000 units x 75% complete. 30,000
4-19
Conversion: 40,000 units x 25%

complete...............................................
10,000
410,00
0
390,000
*Units transferred to the next department = Units in beginning work in process + Units
started into production Units in ending work in process = 70,000 + 350,000 40,000
= 380,000
2 Cost per Equivalent Unit
.
Total cost (a)..........................................
Material Conversi
s
on
$ 86,00 $ 36,000
0
447,00 198,000
0
$533,00 $234,000
0
410,000 390,000
$1.30
$0.60
3 Cost of Ending Work in Process Inventory and Units Transferred

. Out
4-20

inventory:
Equivalent units of
production (materials:
40,000 units x 75%
complete; conversion:
40,000 units x 25%
complete).......................
Cost per equivalent unit...
process inventory...........
department....................
transferred out...............
Material
s
Conversi
on
30,000
$1.30
10,000
$0.60
$39,000
out:
$6,000
$45,000
380,000 380,000
$1.30
$0.60
$494,00
0 $228,000
$722,00
0
4-21
Total
Problem 4-13 (continued)

4 Cost Reconciliation
.
inventory
($86,000 + $36,000)............................
period
($447,000 + $198,000)........................
inventory.............................................
out.......................................................
4-22
$122,000
645,000
$767,000
$ 45,000
722,000
$767,000

1 Equivalent Units of Production
.
Materia Conversi
ls
on
450,00
Transferred to next department................
450,000
0
Materials: 80,000 units x 75% complete. 60,000
20,000
complete...............................................
510,00
470,000
0
2 Cost per Equivalent Unit

.
Total cost (a)..........................................
Material Conversi
s
on
$ 36,55 $ 13,500
0
391,85 287,300
0
$428,40 $300,800
0
510,000 470,000
$0.84
$0.64
4-23
3 Applying Costs to Units

.
inventory:
Equivalent units of
production .....................
process inventory...........
department....................
transferred out...............
Material
s
Conversi
on
60,000
$0.84
20,000
$0.64
$50,400
out:
$12,800
$63,200
450,000 450,000
$0.84
$0.64
$378,00
0 $288,000
$666,00
0
4-24
Total

4 Cost Reconciliation
.
inventory
($36,550 + $13,500)............................
period
($391,850 + $287,300)........................
inventory.............................................
out.......................................................
$ 50,050
679,150
$729,200
$ 63,200
666,000
$729,200

1 Equivalent units of production
.
Materia Conversi
ls
on
Transferred to next department*............... 270,00 270,000
4-25

Materials: 45,000 units x 100%
complete...............................................
complete...............................................
0
45,000
27,000
315,00
0
297,000
*Units transferred to the next department = Units in beginning work in process + Units
started into production Units in ending work in process = 35,000 + 280,000 45,000
= 270,000
2 Cost per equivalent unit
.
Total cost (a)..........................................
Material Conversi
s
on
$ 43,40 $ 20,30
0
0
397,60 187,600
0
$441,00 $207,900
0
315,000 297,000
$1.40
$0.70
3 Cost of ending work in process inventory and units transferred

. out
Material Conversi
Total
4-26
on
4-27

inventory:
Equivalent units of
production.........................
process inventory..............
department.......................
transferred out..................
45,000
$1.40
27,000
$0.70
$63,000
out:
$18,900
$81,900
270,000 270,000
$1.40
$0.70
$378,00
0 $189,000
$567,00
0
4-28

1.
a.
b.
Work in ProcessBlending
Work in ProcessBottling
Raw Materials
Salaries and Wages Payable
147,600
45,000
192,600
73,200
17,000
90,200
c.
Accounts Payable
596,000
d.
481,000
722,000
Finished Goods
920,000
e.
g.
Accounts Receivable
Sales
Cost of Goods Sold
Finished Goods
108,000
1,400,00
0
890,000
4-29
596,000
481,000
108,000
722,000
920,000
1,400,000
890,000

2.
(g)
Accounts Receivable
1,400,00
0
Bal.
Bal.
Work in Process
Blending Department
Bal
32,800 (e)
722,000
.
(a)
147,600
(b)
73,200
(d)
481,000
Bal
12,600
.
Bal
.
(a)
(b)
(d)
(e)
Bal
.
Bal
.
(f)
Bal
.
Finished Goods
20,000 (g)
890,000
920,000
50,000
Accounts Payable
Raw Materials
198,60 (a
192,60
0 )
0
6,000
Work in Process
Bottling Department
49,000 (f)
920,00
0
45,000
17,000
108,000
722,000
21,000
(c)
596,00 (d
589,00
0 )
0
Bal.
7,000
Salaries and Wages Payable

4-30
(c)
Sales
(g)
596,000
1,400,00
0
(b
)
(g)
90,200
Cost of Goods Sold

890,000

1. Computation of equivalent units in ending inventory:
Mixing
Units transferred to the next department
Mixing: 1 unit 100% complete.........
Materials: 1 unit 20% complete.......
Conversion: 1 unit 10% complete....
60.0
Material
s
60.0
1.0
61.0
Conversi
on
60.0
0.2
0.1
60.1
60.2
2. Costs per equivalent unit:

Mixing
inventory...............................................
$ 1,64
0
94,74
0
4-31
Material
s
$
26
8,402
Conversi
on
$
105
61,197
Total cost.................................................
Cost per equivalent unit..........................
$96,38
0
61.0
$1,580
4-32
$8,428
60.2
$140
$61,30
2
60.1
$1,020

3. Costs of ending work in process inventory and units transferred out:
Mixing
Equivalent units of production............
Cost per equivalent unit......................
inventory...........................................
department.......................................
Cost per equivalent unit......................
Cost of units transferred out...............
Materials
1.0
$1,580
0.2
$140
0.1
$1,020
$1,580
$28
$102
60.0
$1,580
60.0
$140
60.0
$1,020
$94,800
$8,400
$61,200
4. Cost reconciliation:
Cost to be accounted for:
inventory
($1,640 + $26 + $105)........................
Cost added to production during the
period
($94,740 + $8,402 + $61,197)............
Conversi
on
$ 1,771
164,339
$166,110
4-33
Total
$1,710
$164,40
0

inventory.............................................
Cost of units transferred out..................
$ 1,710
164,400
$166,110
4-34

1 Total units transferred to the next
.
department..............................................
Less units in the May 1 inventory..............
Units started and completed in May..........
30,000
5,000
25,000
2 The equivalent units were:

.
Materia Conversi
ls
on
Transferred to next department........... 30,000
30,000
Materials: 4,000 units x 75%
3,000
complete..........................................
2,000
complete..........................................
Equivalent units of production............. 33,000
32,000
3 The costs per equivalent unit were:

.
Total cost (a)..........................................
Material Conversi
s
on
9,000
4,400
57,000
30,800
66,000 35,200
33,000
32,000
2.00
1.10
4 The ending work in process figure is verified as follows:

.
Materia Conversi Total
ls
on
(see above).............................
3,000
2,000
Cost per equivalent unit............
2.00
1.10
6,000
2,200 8,20
4-35
inventory.................................
5. Multiplying the unit cost figure of 3.10 per unit by 1,000 units
does not provide a valid estimate of the incremental cost of
processing an additional 1,000 units through the department. If
there is sufficient idle capacity to process an additional 1,000
units, the incremental cost per unit is almost certainly less than
3.10 per unit because the conversion costs are likely to
include fixed costs.
4-36
Case 4-19 (90 minutes)

This case is difficultparticularly part 3, which requires
analytical skills.
Because there are no beginning inventories, it makes no
difference whether the weighted-average or FIFO method is
used by the company. You may choose to specify that the FIFO
method be used rather than the weighted-average method.
1 Computation of the Cost of Goods
.
Sold:
Units completed and sold................
Transferred in:
20,000 units x 100% complete.....
Conversion:
20,000 units x 25% complete.......
Equivalent units of production.........
Transferred
In
250,000
20,000
270,000
Cost of beginning work in process. . .
Transferred
In
$
0
Cost added during the period..........
49,221,000
Total cost (a)....................................
$49,221,00
0
270,000
$182.30
Equivalent units of production (b)....

Cost per equivalent unit, (a) (b). . .
Conversio
n
250,000
5,000
255,000
Conversio
n
$
0
16,320,00
0
$16,320,0
00
255,000
$64.00
Cost of goods sold = 250,000 units ($182.30 + $64.00) per

unit = $61,575,000.
2. The estimate of the percentage completion of ending work in
process inventories affects the unit costs of finished goods and
therefore the cost of goods sold. Thad Kostowski would like the
estimated percentage completion of the ending work in process
to be increased. The higher the percentage of completion of
4-37
ending work in process, the higher the equivalent units for the
period and the lower the unit costs.
3. Increasing the percentage of completion can increase net
operating income by reducing the cost of goods sold. To
increase net operating income by $62,500, the cost of goods
sold would have to be decreased by $62,500 from $61,575,000
down to $61,512,500. See the next page for the necessary
calculations.
4-38
Case 4-19 (continued)

The percentage of completion, X, affects the cost of goods
sold by its effect on the unit cost, which can be determined as
follows:
Unit cost = $182.30 +
$16,320,000
250,000 + 20,000X
And the cost of goods sold can be computed as follows:

Cost of goods sold = 250,000 Unit cost
Because the cost of goods sold must be reduced down to
$61,512,500, the unit cost must be $246.05 ($61,512,500
250,000 units). Thus, the required percentage completion, X, to
obtain the $62,500 reduction in cost of goods sold can be found
by solving the following equation:
$182.30 +
$16,320,000
= $246.05
250,000 + 20,000X
$16,320,000
= $246.05 - $182.30
250,000 + 20,000X
$16,320,000
= $63.75
250,000 + 20,000X
250,000 + 20,000X
1
=
$16,320,000
$63.75
250,000 + 20,000X =
$16,320,000
$63.75
250,000 + 20,000X = 256,000

20,000X = 256,000 - 250,000
20,000X = 6,000 X =
6,000
= 30%
20,000
Thus, changing the percentage completion to 30% will

decrease cost of goods sold and increase net operating income
by $62,500 as verified on the next page.
4-39

3. (continued)
Computation of the Cost of Goods
Sold:
Units completed and sold................
Transferred in:
20,000 units x 100% complete.....
Conversion:
20,000 units x 30% complete.......
Equivalent units of production.........
Transferred
In
250,000
20,000
270,000
Cost of beginning work in process. . .
Transferred
In
$
0
Cost added during the period..........
49,221,000
Total cost (a)....................................
$49,221,00
0
270,000
$182.30
Equivalent units of production (b)....

Cost per equivalent unit, (a) (b). . .
Conversio
n
250,000
6,000
256,000
Conversio
n
$
0
16,320,00
0
$16,320,0
00
256,000
$63.75
Cost of goods sold = 250,000 units ($182.30 per unit +

$63.75 per unit) = $61,512,500.
4. Carol is in a very difficult position. Collaborating with Thad
Kostowski in subverting the integrity of the accounting system
is unethical by almost any standard. To put the situation in its
starkest light, Kostowski is suggesting that the production
managers lie in order to get their bonus. Having said that, the
peer pressure to go along in this situation may be intense. It is
difficult on a personal level to ignore such peer pressure.
Moreover, Carol probably prefers not to risk alienating people
she might need to rely on in the future. On the other hand,
Carol should be careful not to accept at face value Kostowskis
assertion that all of the other managers are doing as much as
4-40
they can to pull this bonus out of the hat. Those who engage
in unethical or illegal acts often rationalize their own behavior
by exaggerating the extent to which others engage in the same
kind of behavior. Other managers may actually be very
uncomfortable pulling strings to make the target profit for the
year.
4-41

From a broader perspective, if the net profit figures reported by
the managers in a division cannot be trusted, then the
company would be foolish to base bonuses on the net profit
figures. A bonus system based on divisional net profits
presupposes the integrity of the accounting system.
The company should perhaps reconsider how it determines the
bonus. It is quite common for companies to pay an all or
nothing bonus contingent on making a particular target. This
inevitably creates powerful incentives to bend the rules when
the target has not quite been attained. It might be better to
have a bonus without this all or nothing feature. For example,
managers could be paid a bonus of x% of profits above target
profits rather than a bonus that is a preset percentage of their
base salary. Under such a policy, the effect of adding that last
dollar of profits that just pushes the divisional net profits over
the target profit will add a few pennies to the managers
compensation rather than thousands of dollars. Therefore, the
incentives to misstate the net operating income are reduced.
Why tempt people unnecessarily?
4-42
Case 4-20 (45 minutes)

1. The revised computations follow:
Equivalent Units of Production:
Transferre
d In
Transferred to next department................ 100,000
Transferred in: 5,000 units x 100%
5,000
complete...............................................
Materials: 5,000 units x 0% complete.....
Conversion: 5,000 units x 40% complete
Equivalent units of production.................. 105,000
Cost per Equivalent Unit:
Cost of beginning work in process...........
Transferre
d In Costs
$8,820

Total cost (a)............................................
81,480
$90,300
Equivalent units of production (b)............

Cost per equivalent unit, (a) (b)...........
105,000
$0.86
4-43
Materials
100,000
0
100,000
Materials
$3,400
27,600
$31,000
100,000
$0.31
Conversi
on
100,000
2,000
102,000
Conversi
on
$
10,200
96,900
$107,10
0
102,000
$1.05

Equivalent units of production (see
above)...........................................
Cost per equivalent unit.......................
inventory.......................................
department...................................
Cost per equivalent unit.......................
transferred out..............................
Transferre
d In Costs
Materials
Conversi
on
Total
5,000
$0.86
0
$0.31
2,000
$1.05
$4,300
$0
$2,100
$6,400
100,00
0
$0.31
$31,00
0
100,000
$1.05
$105,00
0
$222,00
0
100,000
$0.86
$86,000
2. The unit cost computed above is $2.22 (= $0.86 + $0.31 + $1.05) versus $2.284 on the
original report. The unit cost on the report prepared by the accountant is high because
none of the cost incurred during the month was assigned to the units in the ending work
in process inventory.
4-44

Cost Accounting 14e Chapter 4 Solutions

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cost Accounting 14e Chapter 4 Solutions

Uploaded by

Copyright:

Available Formats

Chapter 4 Process Costing

Chapter 4 Process Costing

Exercise 4-1 (20 minutes)

Chapter 4 Process Costing

Work in ProcessMolding Department

c. To record applying manufacturing overhead:

Chapter 4 Process Costing

Exercise 4-2 (10 minutes)

Units transferred out ..............................

Chapter 4 Process Costing

Exercise 4-3 (10 minutes)

Cost per equivalent unit for

Chapter 4 Process Costing

Exercise 4-4 (10 minutes)

Ending work in process inventory:

Chapter 4 Process Costing

Exercise 4-5 (10 minutes)

Chapter 4 Process Costing

Chapter 4 Process Costing

Exercise 4-6 (15 minutes)

Units transferred to the next

820,000 800,000 800,000

Chapter 4 Process Costing

Exercise 4-7 (30 minutes)

Transferred to next department................

3 Cost of ending work in process inventory and units transferred

Chapter 4 Process Costing

Ending work in process

Chapter 4 Process Costing

Exercise 4-7 (continued)

Chapter 4 Process Costing

Exercise 4-8 (10 minutes)

Chapter 4 Process Costing

Exercise 4-9 (20 minutes)

Chapter 4 Process Costing

Chapter 4 Process Costing

Exercise 4-10 (10 minutes)

Work in process, May 1.....................................

Chapter 4 Process Costing

Exercise 4-11 (30 minutes)

Chapter 4 Process Costing

Units completed and transferred out:

Chapter 4 Process Costing

Exercise 4-12 (10 minutes)

Chapter 4 Process Costing

Conversion: 40,000 units x 25%

3 Cost of Ending Work in Process Inventory and Units Transferred

Chapter 4 Process Costing

Ending work in process

Chapter 4 Process Costing

Problem 4-13 (continued)

Chapter 4 Process Costing

Problem 4-14 (45 minutes)

2 Cost per Equivalent Unit

Chapter 4 Process Costing

3 Applying Costs to Units

Chapter 4 Process Costing

Problem 4-14 (continued)

Problem 4-15 (45 minutes)

Chapter 4 Process Costing

Ending work in process:

3 Cost of ending work in process inventory and units transferred

Chapter 4 Process Costing