FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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Smith Electronic Company’s chip-mounting production department had 300 units of unfinished product, each 50% completed on September 30. During October of the same year, this department put another 900 units into production and completed 1,000 units and transferred them to the next production department. At the end of October, 200 units of unfinished product, 70% completed, were recorded in the ending Work-in-Process Inventory. Smith Electronic introduces all direct materials when the production process is 50% complete. Direct labor and factory
Following is a summary of production costs incurred during October:
| Direct Materials | Conversion Costs | |
|---|---|---|
| Beginning work-in-process | $ 3,712 | |
| Costs added in October | $ 9,900 | 6,400 |
| Total costs | $ 9,900 | $ 10,112 |
Required:
1. Calculate each of the following amounts using weighted-average process costing:
a. Equivalent units of direct materials and conversion.
b. Equivalent unit costs of direct materials and conversion.
c. Cost of goods completed and transferred out during the period.
d. Cost of Work-in-Process Inventory at the end of the period.
2. Prepare a production cost report for October using the weighted-average method.
3. Repeat requirement 1 using the FIFO method.
4. Repeat requirement 2 using the FIFO method.
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