Related questions
QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 37,500 were in process in the Cutting department at the beginning of May and 150,000 were started and completed in May. May’s Cutting department beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of May, 51,250 additional units were in process in the Cutting department and were 60% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $505,035 of direct materials and $396,568 of conversion cost charged to it during May. Its beginning inventory included $74,075 of direct materials cost and $28,493 of conversion cost.
2-4. Using the FIFO method, assign May’s costs to the units transferred out and assign costs to its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)
Process costing: It is a type of costing method, where the direct costs are accumulated and indirect costs are allocated to products manufactured in bulk quantity. This method is used where the products are manufactured under the various processes and in large batches.
Equivalent units: These are semi completed units which were expressed as fully completed units. For instance, 1,000 units which were 50% complete were as good as 500 units 100% complete. Here, 500 units were equivalent units.
Direct materials: It is the basic input required to manufacture the finished products. The direct/raw materials are processed by incurring conversion costs and other overhead to convert them into finished products.
Direct labor: It is the cost of salaries and wages incurred directly to produce a product. This cost is incurred to convert the raw materials into finished product.
FIFO method: Under this method, the units of beginning work-in process are taken as part of units completed and transferred out. Only the costs incurred during the process are taken for calculating the equivalent units.
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps with 3 images
- Q-toric Company manufactures a single product, mushroom soup, which undergoes three production processes (chopping, mixing and packaging) before it can be transferred to finished goods. In the month of February, the chopping department incurred $8,100 and $8,500 for material cost and conversion cost respectively during the month. Beginning inventory was 40 % complete as to conversion costs and materials are added at the beginning of the period at each department. Beginning work in process inventory has 13,733 units, which are attached with $4,400 material costs and $530 conversion costs. The chopping department started 7,100 units during the period. There are 3,600 units remaining in the chopping process at the end of the month, which are 55 % complete as to conversion cost. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole unit or whole dollar. a) Calculate the number of units transferred from the chopping department to the mixing…arrow_forwardVista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units • Beginning inventory of 3,500 units that are 100 percent complete for materials and 23 percent complete for conversion. • 15,400 units started during the period. • Ending inventory of 3,400 units that are 14 percent complete for conversion. Manufacturing Costs • Beginning inventory was $20,200 ($8,900 materials and $11,300 conversion costs). • Costs added during the month were $29,600 for materials and $54,300 for conversion ($28,200 labor and $26,100 applied overhead). Assume the company uses Weighted-Average Method. Required: 1. Calculate the number of equivalent units of production for materials and conversion for March. 2. Calculate the cost per equivalent unit for materials and conversion for March. 3. Determine the costs to be assigned to the units transferred out and the units still in process. Complete this question…arrow_forwardRSTN Company produces its product in two sequential processing departments. During October, the first process finished and transferred 295,000 units of its product to the second process. Of these units, 34,000 were in process at the beginning of the month and 261,000 were started and completed during the month. At month-end, 27,500 units were in process. Compute the number of equivalent units of production for direct materials for the first process for October under each of the following three separate assumptions using the FIFO method. 1 All direct mastarrow_forward
- Equivalent Units of Production Data for the two departments of Kimble & Pierce Company for June of the current fiscal year are as follows: Winding Department Drawing Department 6,100 units, 30% completed 3,000 units, 90% completed Work in process, June 1 Completed and transferred to next processing department during June Work in process, June 30 4,600 units, 55% completed Production begins in the Drawing Department and finishes in the Winding Department. Inventory in process, June 1 Started and completed in June Transferred to Winding Department in June Inventory in process, June 30 Total a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Drawing Department. If an amount is zero, enter in "0". Drawing Department Direct Materials and Conversion Equivalent Units of Production For June Feedback 83,600 units Inventory in process, June 1 Started and completed in June…arrow_forwardRSTN Company produces its product in two sequential processing departments. During October, the first process finished and transferred 295,000 units of its product to the second process. Of these units, 34,000 were in process at the beginning of the month and 261,000 were started and completed during the month. At month-end, 27,500 units were in process. Compute the number of equivalent units of production for direct materials for the first process for October under each of the following three separate assumptions using the FIFO method. 1 All direct mastarrow_forwardIn the month of March, a department had 7500 units in beginning Work in Process Inventory that were 80% complete. During March, 30300 units were transferred into production from another department. At the end of March there were 2500 units in ending Work in Process Inventory that were 80% complete. Direct materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process. The weighted-average method is used. How much are equivalent units of production for direct materials for March? O 37300 equivalent units of production O 28300 equivalent units of production 37800 equivalent units of production 40300 equivalent units of productionarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education