PROCESS COSTING

Question 1

Q1 SOLUTION

Equivalent Units
Materials Conversion
Units complted and transferred out 410,000 410,000
ending Work in process:
Material: 30000*70% 21,000
Conversion: 30000*50% 15,000
Equivalent units of
431,000 425,000
production

WORKING
WIP( UNITS)

BEG 50000 COMPLETED 410000

DURING 390000 END 30000

440000 440000
Question 2

Q2 SOLUTION
Weighted-Average Method
Materials Labor Overhead Total
Work I process, May 1 $14,550 $23,620 $118,100
Cost added during May $88,350 $14,330 $71,650
Total Cost(A) $102,900 $37,950 $189,750

Equivalent units of
production(B) 1,200 1,100 1,100

Cost per Unit(A/B)

$85.75 $34.50 $172.50 $292.75
WORKING:
COST PER UNIT=TOTAL COST/TOTAL UNITS
Question 3

Q3 SOLUTION
Weighted-Average Method

Q3 SOLUTION
Materials
Ending Work in process inventory
equivalent units of production 300
Cost per unit $31.56
Total cost $9,468

Units completed & transferred out

Units transferred to the next department 1,300
Cost per unit $31.56
Cost of units completed & transferred out $41,028
 WORKING
COST PER UNIT=TOTAL COST/TOTAL UNITS
TOTAL COST=COST PER UNIT*TOTAL UNITS

Conversion Total

100
$9.32
$932 $10,400

1,300
$9.32
$12,116 $53,144
T/TOTAL UNITS
T*TOTAL UNITS
Question 4

Q4 SOLUTION
1 Work in process -Mixing 330,000
Raw material inventory 330,000

2 Work in process -Mixing 260,000

Work in process-Baking 120,000
wages payable 380,000

3 Work in process -Mixing 190,000

Work in process-Baking 90,000
Manufacturing overhead 280,000

4 Work in process-Baking 760,000

 Work in process -Mixing 760,000

5 Finished goods 980,000

Work in process-Baking 980,000
Question 5

Q5 SOLUTION
Weighted-Average Method

1 Materials
Units transferred to the next department 790,000
ending work in process:
Material:50000*60% 30000
labor:50000*20%
overhead:50000*20%
Equivalent units of production (B) 820,000

2 Materials
Cost of beginning work in process $68,600
cost added during the period $907,200
Total cost(A) $975,800
Equivalent units of production (B) 820,000
cost per unit (A/B) $1.19
Labor Overhead WORKING
790,000 790,000 WIP -UNITS
BEG 80000 COMPLETED 790000
DURING 760000 END 50000
10000
10000
800,000 800,000 840000 840000

Labor Overhead
$30,000 $48,000
$370,000 $592,000 working
$400,000 $640,000 cost per unit=total cost/total units
800,000 800,000
$0.50 $0.80
Question 6

Q6 SOLUTION

Pounds transferred to the Packing department during may

Ending work in process,May 31
Material:20000*100%
labor & overhead:20000*90%
Equivalent units of production
 WORKING
Labor & WIP (UNITS)
Materials
Overhead beg 30000 completed 490000
490,000 490,000 during 480000 end 20000

20000
18000 510000 510000
510,000 508,000
Question 7

4. Cost Recociliation

Q7 SOLUTION
Weighted-Average Method

1 Materials
Units transferred to the next process 300,000
ending work in process:
materail:40000*50% 20000
conversion:40000*25%
Equivalent units of production 320,000

2 Materials
Cost beginning work in process $56,600
 Cost added during the period $385,000
Total cost(A) $441,600
Equivalent units of production(B) 320,000
Cost per unit(a/b) $1.38

3 Materials
Ending work in process inventory
equivalent units
material:40000*50% 20000
conversion:40000*25%
cost per unit $1.38
Costof ending work in process inventory $27,600
cost of units completed and transferred out
units transferred to the next department 300,000
cost per unit $1.38
cost of units completed and transferred out $414,000

4 COST RECONCILIATION

Costs to be accounted for:

cost beginning $71,500
cost added during the period $599,500

Total cost to be accounted for $671,000

Costs accounted for as follows:

cost of completed & transferred out $636,000

cost of ending wip $35,000
Total cost accounted for $671,000
 WORKING
WIP UNITS
beg 60000 completed 300000
during 280000 end 40000
Conversion
300,000 340000 340000

10000
310,000

Conversion Total working

$14,900 $71,500 cost per unit=total cost/total units
 $214,500 $599,500
$229,400
310,000
$0.74

Conversion Total cost per unit=total cost/total units

Total cost=cost per unit*total units

10000
$0.74
$7,400 $35,000

300,000
$0.74
$222,000 $636,000

4 WORKING
COST RECONCILAITION

WIP- COST
beg $71,500
during $599,500

$671,000
 T RECONCILAITION

WIP- COST
completed $636,000
end $35,000

$671,000
Question 8

Q8 SOLUTION
Weighted-Average Method

1 Equivalent Units of Production

Materials
2 Cost per Equivalent Unit
Materials

3 Cost of Ending Work in Process Inventory and Units Transferred Out

Materials
Ending work in process inventory:

4 Cost Reconciliation
Costs to be accounted for:

Total cost to be accounted for

Costs accounted for as follows:

Total cost accounted for
 WORKING
WIP UNITS

Conversion

0
 Conversion

ed Out
Conversion Total

4
COST RECONCILIATION
WIP- COST

BEG COMPLETED

DURING END

0 0
0
Comprehensive Problem

2 RAW MATERIAL
BAL 0 A) 1480000
 MANUFACTURING OVERHEAD
C) 1070000

WIP-BASE FAB DEPARTMENT

BAL 150000 D) 1850000
A) 851000
B) 330000
C) 665000 BAL END 146000

1996000 1996000

FINISHED GOODS
BAL 0
E) 3200000

3 BASE FAB DEPARTMENT

EQUIVALENT UNIT OF PRODUCTION(EUP)
MATERIAL LABOR OVERHEAD
UNITS TRANSFERRED OUT 370000 370000 370000
ENDING WIP
MATERIAL: 80000*50% 40000
LABOR : 80000*25% 20000
OVERHEAD: 80000*25% 20000
EUP 410000 390000 390000

3 BASE FAB DEPARTMENT

 COST PER EQUIVALENT UNITS
MATERIAL LABOR OVERHEAD
COST BEGINNING 92000 21000 37000
COST ADDED 851000 330000 665000
TOTAL COST A 943000 351000 702000
EUP B 410000 390000 390000
COST PER EQUIVALENT UNIT=A/B 2.3 0.9 1.8

3 BASE FAB DEPARTMENT

COST OF ENDING WIP INVENTORY
MATERIAL LABOR OVERHEAD
ENDING WIP
MATERIAL: 80000*50% 40000
LABOR : 80000*25% 20000
OVERHEAD: 80000*25% 20000
COST PER EQUIVALENT UNITS 2.3 0.9 1.8
COST OF ENDING WIP INVENTORY 92000 18000 36000

3 BASE FAB DEPARTMENT

COST OF UNITS COMPLETED & TRANSFERRED OUT
MATERIAL LABOR OVERHEAD
UNITS TRANSFERRED 370000 370000 370000
COST PER EQUIVALENT UNITS 2.3 0.9 1.8
COST OF UNITS COMPLETED & TRANSFERRED OUT 851000 333000 666000
 Requirement 1

a WIP-BASE FAB DEPARTMENT

WIP- FINISHING DEPARTMENT

b WIP-BASE FAB DEPARTMENT

WIP-FINISHING DEPARTMENT

c WIP-BASE FAB DEPARTMENT

WIP-FINISHING DEPARTMENT

d WIP-FINISHING DEPARTMENT

e FINISHED GOODS

SALARIES & WAGES PAYABLE

B) 600000
 WIP-FINISHING DEPARTMENT
BAL 70000 E) 3200000
A) 629000
B) 270000
C) 405000 BAL END 24000
D) 1850000
3224000 3224000
 COST PER UNIT=TOTAL COST /TOTAL UNITS

146000

1850000
 851000
629000
RAW MATERIALS 1480000

330000
270000
SALARIES & WAGES PAYBALE 600000

665000
405000
MANUFACTURING OVERHEAD 1070000

1,850,000
WIP-BASE FAB DEPARTMENT 1,850,000

3200000
WIP-FINISHING DEPARTMENT 3200000