ACCT2001 Managerial Accounting

Chapter 4
Working Papers

ACCT2001 Chapter 4 Working Papers 1

ACCT2001 Chapter 4 Working Papers 2
ACCT2001 Chapter 4 Working Papers 3
ACCT2001 Chapter 4 Working Papers 4
ACCT2001 Chapter 4 Working Papers 5
ACCT2001 Chapter 4 Working Papers 6
ACCT2001 Chapter 4 Working Papers 7
ACCT2001 Chapter 4 Working Papers 8
04-01 Record Process Cost Flows
Exercise 4-1 (LO4-1)

Date Account Titles and Explanation Debit Credit

ACCT2001 Chapter 4 Working Papers 9

Problem 4-17 (LO4-1)

Date Account Titles and Explanation Debit Credit

ACCT2001 Chapter 4 Working Papers 10

Problem 4-17 continued (LO4-1)

Raw Materials

Finished Goods

Work In Process Work In Proocess

REFINING BLENDING

Labour

Cost of Goods Sold

MOH
Actuals Applied

Only DIRECT materials and labour become part of WIP

INDIRECT materials and labour become part of MOH (actuals)

Accounts Salary & Wages

Receivable Accounts Payable Payable

Sales

ACCT2001 Chapter 4 Working Papers 11

Exercise 4-7 (LO4-1)

Date Account Titles and Explanation Debit Credit

ACCT2001 Chapter 4 Working Papers 12

04-02 Weighted Average Equivalent Units
Exercise 4-2 (LO4-2)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Exercise 4-6 (LO4-2)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Exercise 4-10 (LO4-2)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

ACCT2001 Chapter 4 Working Papers 13

04-03 Weighted Average Unit Cost
Exercise 4-3 (LO4-3)

Materials Labour Overhead Total

Cost per Equivalent Unit

Exercise 4-8 (LO4-3)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

ACCT2001 Chapter 4 Working Papers 14

04-04 Weighted Average Assigning Total Cost
Exercise 4-4 (LO4-4)

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

Exercise 4-8 (LO4-2, 3, 4)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

ACCT2001 Chapter 4 Working Papers 15

Exercise 4-8 continued (LO4-2, 3, 4)

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

Problem 4-14 (LO4-1, 2, 3, 4)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 16

04-05 Weighted Average Cost Reconciliation Report
Exercise 4-5 (LO4-5)

Exercise 4-11 (LO4-2, 3, 4, 5)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

ACCT2001 Chapter 4 Working Papers 17

Exercise 4-11 continued (LO4-2, 3, 4, 5)

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 18

Problem 4-15 (LO4-2, 3, 4, 5)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 19

Problem 4-13 (LO4-2, 3, 4, 5)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 20

Problem 4-16 (LO4-2, 3, 4, 5)

Weighted Average Method

Materials Conversion

♦ Units Complete & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units

Materials Conversion
Cost per Equivalent Unit

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 21

04-06 FIFO Equivalent Units
Exercise 4A-1 (LO4-6)

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

Exercise 4A-8 (LO4-6)

Tons completed & Transferred OUT

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

ACCT2001 Chapter 4 Working Papers 22

Exercise 4A-5 (LO4-6)

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

Exercise 4A-6 (LO4-6)

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

ACCT2001 Chapter 4 Working Papers 23

04-07 FIFO Unit Cost
Exercise 4A-2 (LO4-7)

Materials Labour Overhead Total

Cost per Equivalent Unit

04-08 FIFO Assigning Cost

Exercise 4A-3 (LO4-8)

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT
Cost of Beginning WIP
Cost to Complete Beginning WIP
Cost of units Started & Completed
Total Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 24

Exercise 4A-9 (LO4-6, 7, 8)

Total
Cost per Equivalent Unit

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT
Cost of Beginning WIP
Cost to Complete Beginning WIP
Cost of units Started & Completed
Total Cost of units Transferred OUT

ACCT2001 Chapter 4 Working Papers 25

04-09 FIFO Cost Reconciliation Report
Exercise 4A-4 (LO4-9)

Problem 4A- 10 (LO4-6, 7, 8, 9)

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

Materials Conversion
Cost per Equivalent Unit

ACCT2001 Chapter 4 Working Papers 26

Problem 4A- 10 continued (LO4-6, 7, 8, 9)

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT
Cost of Beginning WIP
Cost to Complete Beginning WIP
Cost of units Started & Completed
Total Cost of units Transferred OUT

Blending Department
Cost Reconciliation

ACCT2001 Chapter 4 Working Papers 27

Problem 4A- 11 (LO4-6, 7, 8, 9)

FIFO Method
Materials Materials Conversion

♦ Work in Process (to complete BEGINNING balance)

x %
x %

♦ Units Started & Transferred Out

♦ Work in Process (ENDING balance)

x %
x %

Total Equivalent Units 0

Materials Conversion
Cost per Equivalent Unit

Materials Conversion Total

Cost of Ending WIP inventory
Cost of units Transferred OUT
Cost of Beginning WIP
Cost to Complete Beginning WIP
Cost of units Started & Completed
Total Cost of units Transferred OUT

Blending Department
Cost Reconciliation

ACCT2001 Chapter 4 Working Papers 28