17-29 Zero beginning inventory, materials introduced in middle of proces: Department and a Refining Department. in th cost categories fd The following data pertain to the Mixing Department for July of the current yea “(Chemical /P is introduced at the start of operations in the Mixing Department, and chemical © is added when the product is three-fourths completed in the Mixing Department. Conversion costs are | added evenly during the process. The ending work in process in the Mixing Department is two-thirds | complete. Units Work in process, July 1 i Units started 50,000 Completed and transforred to Rofining Dopartmont 35,000 Costs i %25,00,000 i 7,00,000 | Conversion costs 13,50,000 | | | 1. Compute the equivalent units in the Mixing Department for July for each cost category. | 2 Compute (a) the cost of goods completed and transferred to the Refining Department during | July and (b) the cost of work in process as of July 31. i 17-30 Weighted-average method, assigning costs. The Asian Chemicals Company makes a water- treatment chemical in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Asian Chemicals uses the weighted-average method of process costing. The following information for July related to current year is available: Equivalent Units Conversion Physical Units Direct Materials Costs Work in process, July 1 10,0008 10,000 7,000 Started during July 40,000 Completed and transferred out during July 34,000 34,000 34,000 Work in process, July 31 16,000° 16,000 8,000 *Degree of completion: direct materials, 100%; conversion costs, 70%. "Degree of completion: direct materials, 100%; conversion costs, 50%. Total Costs for July Work in process, beginning Direct materials %6,00,000 Conversion costs 7,00,000 313,00,000 Direct materials added during July 28,00,000 Conversion costs added during July 37,10,000 Total costs to account for %78,10,000 1. Calculate cost per equivalent unit for direct materials and conversion costs. 2 eats total costs to account for, and assign these costs to units completed (and trans- ferred out) and to units in ending work in process, 17-31 FIFO method, assigning costs, Do Exercise 17-30 usi i ps eee 30 using the FIFO method. Note that you first need to calculate the equivalent units Workin process, to stone period (for direct materials and conversion costs) to complete beginning . and complete new units, and to Produce ending work in process. 4a ord-costing ae eee Costs, Rofor to tho information in Exercise 17-31. Suppose ASIA 11 ais otermines, stanon™ Goats of 265 per equivalent unit for arect materials and 103 per cre jant unit (OF CO Vv 18 for both beginning work in process and work done in the current ai xercise 17-30 using the standard-costing method, Note that you first need to catoulate the aquivatent units of work done in the current period (for direct materials and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending york in proces compute the total direct materials and conversion costs variances for July. ration Costing. Feather Light Shoe Company manufactures two styles of men’s shoes: nd Regular. Designer style is made from leather, and Regular style uses synthetic materi- ecignet al - i Be pree operations—cutting, sewing and packing—are common to both styles, but only Designer XS jpasces through a lining operation. The conversion cost rates for 2017 are: Cutting Sowing Lining Packing Fate per unit (pair) 100 150 80 220 pesisoftwo work orders processed in August are: Work Order 815 Work Order 831 Number of units (pairs) 1,000 5,000 Direct materials costs 3,00,000 25,00,000 syle Designer Regular Cuiculate the total costs and the total cost per unit of work order 815 and work order 831. ‘1 Weighted-average method. Indian Defence, Limited is a manufacturer of military equipment. Its ths plant manufactures the Interceptor Missile under contract to the U.S. government and friendly contigs. All Interceptors go through an identical manufacturing process. Every effort is made to ensure taal Interceptors are identical and meet many demanding performance specifications. The process- sing system at the Orissa plant has a single direct-cost category (direct materials) and a single indi- ‘cas category (conversion costs). Each Interceptor passes through two departments: the Assembly Secetment and the Testing Department. Direct materials are added at the beginning of the process in 4ssembly. Conversion costs are added evenly during the Assembly Department's process. When the ‘ssembly Department finishes work on each Interceptor, it is immediately transferred to Testing. Sen Defence uses the weighted-average method of process costing. Data for the Assembly Seyztment for October of the recent year are: Physical Units (Missiles) Direct Materials Conversion Costs be in process, October 1* 20 %46,00,000 12,00,000 Gre during October 80 “snpleed during October 90 ‘kin process, October 31° 10 added during October 2,00,00,000 293,50,000 ge re oMDtin: direct materials, 7%; convarsion cosa, 0 Completion: direct materials, 7%; convarsion costs, 70%. 1 roreach cost element, compute equivalent units in the Assembly Department. Show physical 2 Foy the first column of your schedule. 2. g 03h cost element, calculate costs per equivalent unit. fog t2@ total Assembly Department costs for October and assign these costs to units com- Naw. €nd transferred out and to units in ending work in process.