quirement 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first umn of your schedule. er the physical units first, and then calculate the equivalent units. (Round your answers to the nearest whole unit.) Flow of Production rk in process, beginning arted during current period account for mpleted and transferred out during current period rom beginning work in process tarted and completed rk in process, ending counted for Physical Units ork in process, beginning sts added in current period at standard costs 15,375 100,375 115,750 15,375 80.000 20,375 115,750 Equivalent Units Direct Conversion Materials Costs Total Production Costs 0 quirement 2. Compute the total standard costs of handles transferred out in August and the total standard costs of the August 31 inventory of work in process. gin by summarizing the total costs to account for. (Round your answers to the nearest whole dollar) 142000 80,000 20.375 100,375 Direct Materials 10,763 80,000 13,244 104,007 86.625 Conversion Costs 55,375 Data Langley Company's Process Costing for the Month Ended August 31 Direct Materials $ 5.90 Conversion Costs $ 12.20 55,375 15,375 $ 86,625 $ Standard cost per unit Work in process, beginning inventory (Aug. 1) Degree of completion of beginning work in process Units Started in August 100,375 Completed and transferred out 95,375 Work in process, ending inventory (Aug. 31) 20,375 Degree of completion of ending work in process Total costs added during August Print 100% 100% $ 573,000 Done 30% 65% $1,307,540
quirement 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first umn of your schedule. er the physical units first, and then calculate the equivalent units. (Round your answers to the nearest whole unit.) Flow of Production rk in process, beginning arted during current period account for mpleted and transferred out during current period rom beginning work in process tarted and completed rk in process, ending counted for Physical Units ork in process, beginning sts added in current period at standard costs 15,375 100,375 115,750 15,375 80.000 20,375 115,750 Equivalent Units Direct Conversion Materials Costs Total Production Costs 0 quirement 2. Compute the total standard costs of handles transferred out in August and the total standard costs of the August 31 inventory of work in process. gin by summarizing the total costs to account for. (Round your answers to the nearest whole dollar) 142000 80,000 20.375 100,375 Direct Materials 10,763 80,000 13,244 104,007 86.625 Conversion Costs 55,375 Data Langley Company's Process Costing for the Month Ended August 31 Direct Materials $ 5.90 Conversion Costs $ 12.20 55,375 15,375 $ 86,625 $ Standard cost per unit Work in process, beginning inventory (Aug. 1) Degree of completion of beginning work in process Units Started in August 100,375 Completed and transferred out 95,375 Work in process, ending inventory (Aug. 31) 20,375 Degree of completion of ending work in process Total costs added during August Print 100% 100% $ 573,000 Done 30% 65% $1,307,540
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:Langley Company is a manufacturer of contemporary door handles. The vice president of Design attends home shows twice a year so the company can keep current with home trends. Because of its volume, Langley uses process costing to account for production. Costs and output figures for August are as follows:
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Required
Requirement 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first
column of your schedule.
Enter the physical units first, and then calculate the equivalent units. (Round your answers to the nearest whole unit.)
Flow of Production
Work in process, beginning
Started during current period
To account for
Completed and transferred out during current period
From beginning work in process
Started and completed
Work in process, ending
Accounted for
Work in process, beginning
Costs added in current period at standard costs
Physical
Units
Total costs to account for
15,375
100,375
115,750
15,375
80,000
20,375
115,750
Equivalent Units
Direct
Materials
142000
0
80,000
20,375
100,375
Requirement 2. Compute the total standard costs of handles transferred out in August and the total standard costs of the August 31 inventory of work in process.
Begin by summarizing the total costs to account for. (Round your answers to the nearest whole dollar.)
Total Production
Costs
Conversion
Costs
Direct
Materials
10,763
80,000
13,244
104,007
86,625
Conversion
Costs
55,375
Data
Langley Company's Process Costing for the Month Ended August 31
Standard cost per unit
Work in process, beginning inventory (Aug.
1)
Degree of completion of beginning work in
process
Started in August
Completed and transferred out
Work in process, ending inventory (Aug. 31)
Degree of completion of ending work in
process
Total costs added during August
Print
Units
15,375
100,375
95,375
20,375
Direct Materials
$
$
5.90
Done
86,625
100%
$
100%
$ 573,000 $
Conversion
Costs
12.20
$ 55,375
30%
65%
1,307,540
X
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