"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at thisreport that he prepared for last month for the Finishing Department. I can't understand it."Finishing Department costs:Work in process inventory, April 1, 450 units; materials100% complete; conversion 60% completeCosts transferred in during the month from the precedingdepartment, 1,950 unitsMaterials cost added during the monthConversion costs incurred during the monthTotal departmental costsFinishing Department costs assigned to:Units completed and transferred to finished goods, 1,800units at $25.71 per unitWork in process inventory, April 30, 600 units; materials 0%complete; conversion 35% completeTotal departmental costs assigned$ 8,208*17,9406,21013,920$ 46,278$ 46,2780$ 46,278*Consists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160."He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from processcosting for a long time, and it's coming back slowly.""It's not just the format of his report that I'm concerned about. Look at that $25.71 unit cost that he's come up with for April. Doesn't thatseem high to you?" said Ms. Scarpino."Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be theexplanation," replied Mr. Harrop. "I'll get someone else to redo this report and then we can see what's going on."Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. Thecompany uses the weighted-average method in its process costing.Required:1-a. Calculate the equivalent units of production.1-b. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places.)1-c. How much cost should have been assigned to the ending work in process inventory? (Round your intermediate calculations to 2decimal places.)1-d. How much cost should have been assigned to the units completed and transferred to finished goods? (Round your intermediatecalculations to 2 decimal places.)TransferredIn CostsMaterialsConversionTotal1-a. Equivalent units of production2,4001,8002,0101-b. Cost per equivalent unit$9.17 $4.55$8.001-c. Cost of ending work in process inventory$5,502$1-d. Cost of units completed and transferred out1,680 $$7,1820

Name: "I think we goofed when we hired that new assistant controller," said
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Description: "I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at thisreport that he prepared for last month for the Finishing Department. I can't understand it."Finishing Department

Equivalent units of production:An equivalent unit of production is a term used to describe a…

Business

Accounting

100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 1,950 units Materials cost added during the month Conversion costs incurred during the month $ 8,208* 17,940 6,210 13,920 $ 46,278 Total departmental costs inishing Department costs assigned to: Units completed and transferred to finished goods, 1,800 units at $25.71 per unit $ 46,278 Work in process inventory, April 30, 600 units; materials 0% complete; conversion 35% complete 0 Total departmental costs assigned $ 46,278 nsists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160.

100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 1,950 units Materials cost added during the month Conversion costs incurred during the month $ 8,208* 17,940 6,210 13,920 $ 46,278 Total departmental costs inishing Department costs assigned to: Units completed and transferred to finished goods, 1,800 units at $25.71 per unit $ 46,278 Work in process inventory, April 30, 600 units; materials 0% complete; conversion 35% complete 0 Total departmental costs assigned $ 46,278 nsists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data Section: Work in process, beginning Units started during the month Work in process, ending Costs to account for. Beginning work in process Materials added Conversion costs incurred Total costs to be accounted for Beg. Work in process Started & Completed Ending Work in process Total Whole Units $ $ $ S Units 50,000 220,000 30,000 Total 100,000 176,000 597,600 873,600 Direct Mat. % Added During the Month Cost per equivalent unit Percent Conversion 30% 80% Direct Mat. Equiv. Units Direct Mat. Conversion% Added During the Month HINT: To find started and completed: Completed units - beginning inventory Started during the month - ending inventory Conversion Equiv. Units Conversion Beginning Inventory Cost assignment Direct Materials Conversion Total Amount reported on the balance sheet as Finished goods inventory Work in Process inventory
how can I resolve this problem? Percent Completed Units Materials Conversion Work in process, beginning 50,000 70% 40% Started into production 265,000 Completed and transferred out 255,000 Work in process, ending 60,000 75% 25% Materials Conversion Work in process, beginning $ 16,600 $ 5,000 Cost added during June $ 178,400 $ 105,700 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. 4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. 5. Prepare a cost reconciliation report for the Blending Department for June.
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $0.55 and $2.55, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 0 4,100 Started and completed during October 59,000 59,000 Transferred out of Rolling (completed) 59,000 63,100 Inventory in process, October 31 7,000 3,500 Total units to be assigned costs 66,000 66,600 The beginning work in process inventory on October 1 had a cost of $2,500. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, October 31 Total costs assigned by the Rolling Department
Compute the Equivalent units of production (EUP):Units received from preceding department 25,000 unitsUnits completed and transferred 14,000 unitsUnits in process, end (30% incomplete) 11,000 unitsCompute the equivalent production for conversion if 40% of materials are added at the beginning and the remaining 60% are added 75% completed
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $1.70 and $2.40, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials 0 Inventory in process, October 1 Started and completed during October Transferred out of Rolling (completed) Inventory in process, October 31 Total units to be assigned costs 72,000 The beginning work in process inventory on October 1 had a cost of $2,900. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, October 31 Total costs assigned by the Rolling Department 65,000 65,000 7,000 Equivalent Units Conversion 4,600 65,000 69,600 S 2,800 72,400
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $109,020 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Nov. 1 Bal., 7,900 units, 60% completed 118,026 30 Direct materials, 72,000 units 979,200 1,097,226 30 Direct labor 62,610 1,159,836 30 Factory overhead 86,450 1,246,286 30 Goods finished, 2 units ? 30 Bal., 6,300 units, 90% completed ? Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. b. Cost of units transferred to the next department during…
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Jabari Steel Company are $2.35 and $0.70, respectively. The equivalent units to be assigned costs are as follows: Inventory in process, October 1 Started and completed during October Transferred out of Rolling (completed) Inventory in process, October 31 Equivalent Units Direct Materials 0 Equivalent Units Conversion 3,200 54,000 54,000 54,000 7,000 Total units to be assigned costs 61,000 The beginning work in process inventory on October 1 had a cost of $2,080. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production Inventory in process, October 31 Total costs assigned by the Rolling Department 57,200 2,100 59,300
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $33,320 of direct materials. ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 3,400 units, 70% completed 38,080 30 Direct materials, 31,000 units 294,500 332,580 30 Direct labor 28,000 360,580 30 Factory overhead 38,675 ? 399,255 30 Goods finished, ? units ? 30 Bal., 2,700 units, 90% completed ? Cost per equivalent units of $9.50 for Direct Materials and $2.10 for Conversion Costs. Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers…
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $2.30 and $1.85, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 1,500 Started and completed during October 30,000 30,000 Transferred out of Rolling (completed) 30,000 31,500 Inventory in process, October 31 3,000 1,800 Total units to be assigned costs 33,000 33,300 The beginning work in process inventory on October 1 had a cost of $920. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department. Completed and transferred-out production 181,000 x Inventory in process, October 31 Total costs assigned by the Rolling Department Feedback TCheck My Work The assumption would be that units that had been in beginning work in…
Inventory in process, March 1 (35% completed) 2,000 Started and completed in March 35,000 35,000 35,000 Transferred to Baking Department in March 37,000 Inventory in process, March 31 (80% completed) 3,000 Total units to be assigned costs 40,000 Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for March in Mixing Department $40,660 $36,765 Total equivalent units Cost per equivalent unit Costs assigned to production:
Costs per Equivalent Unit and Production Costs The following information concerns production in the Forging Department for June. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $18,000 of direct materials. ACCOUNT Work in Process-Forging Department Debit Credit Date Item June 1 Bal., 1,800 units, 60% completed 30 Direct materials, 25,800 units 30 Direct labor 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 2,800 units, 70% completed Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. Based on the above data, determine each of the following amounts. If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. 247,680 43,300 33,740 Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit ACCOUNT NO. Balance Balance…