Marigold Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Marigold's main processing department reported the following activity and costs. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 300 22,800 22,100 1,000 DM 100% $260 $6,439 100% Conversion Costs 30% $480 $4,741 60% All DM resources are added to Marigold's processing department at the beginning of processing. Conversion costs are added evenly throughout the process. Marigold uses the weighted-average method of process costing.
Marigold Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when no existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation. This year, Marigold's main processing department reported the following activity and costs. Units in beginning WIP Inventory Beginning WIP Inventory degree of completion Costs in beginning WIP Inventory New units started Costs added to WIP Inventory this period Units completed Units in ending WIP Inventory Ending WIP Inventory degree of completion Units 300 22,800 22,100 1,000 DM 100% $260 $6,439 100% Conversion Costs 30% $480 $4,741 60% All DM resources are added to Marigold's processing department at the beginning of processing. Conversion costs are added evenly throughout the process. Marigold uses the weighted-average method of process costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(a)
Complete Steps 1-5 of the template for Marigold Enterprises this year using the weighted-average method of process costing.
clearly labeling the following. (Round cost per equivalent unit to 2 decimal places, e.g. 15.25.)
Equivalent units of production for both DM and conversion costs.
The cost per equivalent unit for both DM and conversion costs.
The total cost of units completed and the total cost of units in ending WIP Inventory.
Total equivalent units of work done
Cost per equivalent unit
Total cost of units completed
Cost of units in ending WIP Inventory
eTextbook and Media
List of Accounts
$
LA
LA
DM
$
Conversion Cost
Transcribed Image Text:Current Attempt in Progress
Marigold Enterprises is aptly named because of its signature item-chewing gum! The owners started the business years ago when no
existing gum had the right flavor and texture combination. After years of perfecting the process, they had a finely tuned operation.
This year, Marigold's main processing department reported the following activity and costs.
Units in beginning WIP Inventory
Beginning WIP Inventory degree of completion
Costs in beginning WIP Inventory
New units started
Costs added to WIP Inventory this period
Units completed
Units in ending WIP Inventory
Ending WIP Inventory degree of completion
Units
(a)
300
22,800
22,100
1,000
DM
100%
$260
$6,439
100%
Conversion Costs
30%
$480
$4,741
60%
All DM resources are added to Marigold's processing department at the beginning of processing. Conversion costs are added evenly
throughout the process. Marigold uses the weighted-average method of process costing.
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