
1. Armor Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $22,700.
Work in Process Inventory | |||
Beginning balance @ 12/1: 420 units, 10% completed | $ 26,000 | Completed 1,050 units and transferred them to finished goods inventory | $ 217,291 |
Direct materials | 74,000 | ||
Direct labor | 50,000 | ||
16,000 | |||
47,000 | |||
Utilities | 31,000 | ||
Indirect labor | 14,000 | ||
Ending balance @ 12/31: 405 units, 20% completed | $ 40,709 |
Cost per equivalent unit for conversion under the FIFO method is calculated to be (rounded):
2. Shyne Incorporated calculates cost for an equivalent unit of production using the weighted-average method.
Data for July: | |
---|---|
Work-in-process inventory, July 1 (38,000 units): | |
Direct materials (96% completed) | $ 122,600 |
Conversion (54% completed) | 77,050 |
Balance in work in process inventory, July 1 | $ 199,650 |
Units started during July | 92,000 |
Units completed and transferred | 105,600 |
Work-in-process inventory, July 31: | |
Direct materials (96% completed) | 24,400 |
Conversion (54% completed) | |
Cost incurred during July: | |
Direct materials | $ 182,000 |
Conversion costs | 290,000 |
The cost of goods completed and transferred out under the weighted-average method is calculated to be:
3. Shyne Incorporated calculates cost for an equivalent unit of production using the FIFO method.
Data for July: | |
---|---|
Work-in-process inventory, July 1 (39,000 units): | |
Direct materials (94% completed) | $ 122,700 |
Conversion (56% completed) | 77,150 |
Balance in work in process inventory, July 1 | $ 199,850 |
Units started during July | 93,000 |
Units completed and transferred | 107,700 |
Work-in-process inventory, July 31: | |
Direct materials (94% completed) | 24,300 |
Conversion (56% completed) | |
Cost incurred during July: | |
Direct materials | $ 183,000 |
Conversion costs | 291,000 |
Cost per equivalent unit for conversion under the FIFO method is calculated to be:
4. Armor Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $33,700.
Work in Process Inventory | |||
Beginning balance @ 12/1: 640 units, 10% completed | $ 37,000 | Completed 1,160 units and transferred them to finished goods inventory | $ 278,607 |
Direct materials | 85,000 | ||
Direct labor | 61,000 | ||
Overhead Property taxes | 27,000 | ||
Depreciation | 58,000 | ||
Utilities | 42,000 | ||
Indirect labor | 25,000 | ||
Ending balance @ 12/31: 460 units, 20% completed | $ 56,393 |
Cost per equivalent unit for materials under the FIFO method is calculated to be (rounded):

Step by stepSolved in 2 steps

- The records of Stone Inc. reflect the following data: Work in process, beginning of month4,000 units one-fourth completed at a cost of 2,500 for materials, 1,400 for labor, and 1,800 for overhead. Production costs for the monthmaterials, 130,000; labor, 70,000; and factory overhead, 82,000. Units completed and transferred to stock45,000. Work in process, end of month5,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost. (Round unit costs to three decimal places.)arrow_forwardOn December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.arrow_forwardRexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units. The beginning work in process inventory consisted of $5,000 in materials and $8,500 in conversion costs before $16,000 of materials and $18,500 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.arrow_forward
- During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.arrow_forwardThe records of Burris Inc. reflect the following data: Work in process, beginning of month2,000 units one-half completed at a cost of 1,250 for materials, 675 for labor, and 950 for overhead. Production costs for the monthmaterials, 99,150; labor, 54,925; factory overhead, 75,050. Units completed and transferred to stock38,500. Work in process, end of month3,000 units, one-half completed. Compute the months unit cost for each element of manufacturing cost and the total per unit cost.arrow_forwardArdt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.arrow_forward
- The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What are the total equivalent units for conversion costs?arrow_forwardLoanstar had 100 units in beginning inventory before starting 950 units and completing 800 units. The beginning work in process inventory consisted of $2,000 in materials and $500O in conversion costs before $8.500 of materials and $11,200 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.arrow_forwardEllerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?arrow_forward
- During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances: Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.arrow_forwardEllerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.arrow_forwardA company started the month with 8,329 units in work in process inventory. It started 23,142 unit and had an ending inventory of 9,321. The units were 100% complete to materials and 67% complete with conversion. How many units were transferred out during the period?arrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,




