Chapter 9 Process Costing - Solutions Manual Content

Chapter 9: Applying Excel

The completed worksheet is shown below.

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Chapter 9: Applying Excel (continued)

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 Chapter 9 Process Costing - Solutions Manual Content

The completed worksheet, with formulas displayed, is shown below.

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 Chapter 9 Process Costing - Solutions Manual Content

[Note: To display formulas in Excel, select “formulas” => select “Show

formulas” in cells instead of their calculated amounts. To display the
formulas in other versions of Excel, consult Excel Help.]

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Chapter 9: Applying Excel (continued)

1. When the units are changed, the worksheet changes as show below:

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© The McGraw-Hill Companies, Inc., 2015. All rights reserved.

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Chapter 9: Applying Excel (continued)

All of the amounts involving units were cut in half. The units in
beginning work in process inventory were reduced from 200 units to
100 units; the units started into production during the period were
reduced from 5,000 units to 2,500 units; and the units in ending work in
process inventory were reduced from 400 units to 200 units. All of the
costs remained the same. The effect was to double the cost per
equivalent unit, but the total cost of the units transferred out was
unaffected. When a cost per equivalent unit that is twice as much is
multiplied by units that are half as much, the result is unaffected.

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Chapter 9: Applying Excel (continued)

2. With all of the changes in the data, the worksheet should look like:

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The cost of the units transferred out is $58,330.

© The McGraw-Hill Companies, Inc., 2015. All rights reserved.

9 Managerial Accounting, Asia Global Edition 2e
 Chapter 9 Process Costing - Solutions Manual Content

Chapter 9: Applying Excel (continued)

3. Changing the percentage completion with respect to conversion for
beginning inventory from 20% to 40% results in:

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© The McGraw-Hill Companies, Inc., 2015. All rights reserved.

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Chapter 9: Applying Excel (continued)

The cost per equivalent unit for conversion is not affected by the
increase in the percentage completion of the beginning inventory. In
fact, nothing else on the worksheet is affected except this one amount.
This is a consequence of using the weighted-average method. If the
FIFO method had been used, the change in the percentage completion
of beginning inventory would have affected the cost per equivalent unit
and many other amounts on the worksheet.

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