Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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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    
Overhead Property taxes 16,000    
Depreciation 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):

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