Fundamental Accounting Principles -Hardcover
Fundamental Accounting Principles -Hardcover
22nd Edition
ISBN: 9780077632991
Author: Wild
Publisher: MCG
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Chapter 20, Problem 6APSA
To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To calculate the number of units transferred to Finished Goods

Expert Solution
Check Mark

Answer to Problem 6APSA

Solution:

187500 units (37500 from opening and 150000 started and completed ) were completed and transferred to Finished Goods.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
    DIRECT MATERIAL  
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST $  
           
OPENING BALANCE 37,500 60% 22,500 74,075  
           
COST INCURRED DURING THE MONTH       505,035  
        579,110  
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 40% 15,000    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
CLOSING WORK IN PROGRESS 51,250 60% 30,750    
      195,750    
           
Per Unit cost of Equivalent units       2.58  
           
COST OF OPENING UNITS     15,000 112,775.00  
COST OF UNITS COMPLETED AND TRANSFERRED       387,000  
COST OF WORK IN PROGRESS       79,335  
TOTAL       579,110  
           
           
    CONVERSION COST TOTAL MATERIAL AND CONVERSION
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST
           
OPENING BALANCE 37,500 40% 15,000 28,493 102,568
           
COST INCURRED DURING THE MONTH       396,568 901,603
        425,061 1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 60% 22,500    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
WORK IN PROGRESS 51,250 20% 10,250    
      182,750    
           
Per Unit cost of Equivalent units     =396568/182750 2.17  
           
OPENING UNITS COMPLETED AND TRANSFERRED       77,318 190,093
COST OF UNITS COMPLETED AND TARNSFERRED       325,500 712,500
COST OF WORK IN PROGRESS       22,243 101,578
TOTAL       425,061 1,004,171
Conclusion

Conclusion:

Number of units transferred to Finished Goods were 187500 units.

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate the number of Equivalent units with respect to Direct Material and Conversion.

Expert Solution
Check Mark

Answer to Problem 6APSA

Solution:

Equivalent units produced for the month of May using FIFO method were 195750 units from material perspective and 182750 units from Conversion perspective.

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
    DIRECT MATERIAL  
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST $  
           
OPENING BALANCE 37,500 60% 22,500 74,075  
           
COST INCURRED DURING THE MONTH       505,035  
        579,110  
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 40% 15,000    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
CLOSING WORK IN PROGRESS 51,250 60% 30,750    
      195,750    
           
Per Unit cost of Equivalent units       2.58  
           
COST OF OPENING UNITS     15,000 112,775.00  
COST OF UNITS COMPLETED AND TRANSFERRED       387,000  
COST OF WORK IN PROGRESS       79,335  
TOTAL       579,110  
           
           
    CONVERSION COST TOTAL MATERIAL AND CONVERSION
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST
           
OPENING BALANCE 37,500 40% 15,000 28,493 102,568
           
COST INCURRED DURING THE MONTH       396,568 901,603
        425,061 1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 60% 22,500    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
WORK IN PROGRESS 51,250 20% 10,250    
      182,750    
           
Per Unit cost of Equivalent units     =396568/182750 2.17  
           
OPENING UNITS COMPLETED AND TRANSFERRED       77,318 190,093
COST OF UNITS COMPLETED AND TARNSFERRED       325,500 712,500
COST OF WORK IN PROGRESS       22,243 101,578
TOTAL       425,061 1,004,171
Conclusion

Conclusion:

  Direct Material Conversion
Number of Equivalent units on FIFO basis during May 195750 182750
To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Calculate per Equivalent units cost with respect to Direct Material and Conversion.

Expert Solution
Check Mark

Answer to Problem 6APSA

Solution:

  Direct Material Conversion
Cost per Equivalent units on FIFO basis during May 2.58 2.17

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
    DIRECT MATERIAL  
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST $  
           
OPENING BALANCE 37,500 60% 22,500 74,075  
           
COST INCURRED DURING THE MONTH       505,035  
        579,110  
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 40% 15,000    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
CLOSING WORK IN PROGRESS 51,250 60% 30,750    
      195,750    
           
Per Unit cost of Equivalent units       2.58  
           
COST OF OPENING UNITS     15,000 112,775.00  
COST OF UNITS COMPLETED AND TRANSFERRED       387,000  
COST OF WORK IN PROGRESS       79,335  
TOTAL       579,110  
           
           
    CONVERSION COST TOTAL MATERIAL AND CONVERSION
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST
           
OPENING BALANCE 37,500 40% 15,000 28,493 102,568
           
COST INCURRED DURING THE MONTH       396,568 901,603
        425,061 1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 60% 22,500    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
WORK IN PROGRESS 51,250 20% 10,250    
      182,750    
           
Per Unit cost of Equivalent units     =396568/182750 2.17  
           
OPENING UNITS COMPLETED AND TRANSFERRED       77,318 190,093
COST OF UNITS COMPLETED AND TARNSFERRED       325,500 712,500
COST OF WORK IN PROGRESS       22,243 101,578
TOTAL       425,061 1,004,171
Conclusion

Conclusion:

Direct material cost per equivalent unit during may is $ 2.58

Conversion cost per equivalent unit during may is $ 2.17

To determine

Introduction:

In Process costing organization has option of using FIFO basis or weighted average basis for determining equivalent units and the cost.

To Calculate:

To Assign cost to Units transferred to FG and to ending WIP.

Expert Solution
Check Mark

Answer to Problem 6APSA

Solution:

  Cost Assigned to FG Cost Assigned to WIP
Cost Assigned in May 902593 101578

Explanation of Solution

Explanation:

PROCESS COST SUMMARY (FIFO BASIS)
    DIRECT MATERIAL  
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST $  
           
OPENING BALANCE 37,500 60% 22,500 74,075  
           
COST INCURRED DURING THE MONTH       505,035  
        579,110  
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 40% 15,000    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
CLOSING WORK IN PROGRESS 51,250 60% 30,750    
      195,750    
           
Per Unit cost of Equivalent units       2.58  
           
COST OF OPENING UNITS     15,000 112,775.00  
COST OF UNITS COMPLETED AND TRANSFERRED       387,000  
COST OF WORK IN PROGRESS       79,335  
TOTAL       579,110  
           
           
    CONVERSION COST TOTAL MATERIAL AND CONVERSION
DETAILS NO OF UNITS % COMPLETE EQUIVALENT UNIT COST
           
OPENING BALANCE 37,500 40% 15,000 28,493 102,568
           
COST INCURRED DURING THE MONTH       396,568 901,603
        425,061 1,004,171
OPENING UNITS COMPLETED AND TRANSFERRED 37,500 60% 22,500    
UNITS COMPLETED AND TRANSFERRED 150,000 100% 150,000    
WORK IN PROGRESS 51,250 20% 10,250    
      182,750    
           
Per Unit cost of Equivalent units     =396568/182750 2.17  
           
OPENING UNITS COMPLETED AND TRANSFERRED       77,318 190,093
COST OF UNITS COMPLETED AND TARNSFERRED       325,500 712,500
COST OF WORK IN PROGRESS       22,243 101,578
TOTAL       425,061 1,004,171
Conclusion

Conclusion:

Costs assigned during May in FIFO basis were as under:

  Direct Material Conversion Total
Units completed and Transferred 499775 402818 902593
Work In Progress 79335 22243 101578

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Chapter 20 Solutions

Fundamental Accounting Principles -Hardcover

Ch. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Prob. 14DQCh. 20 - Prob. 15DQCh. 20 - Prob. 16DQCh. 20 - Prob. 1QSCh. 20 - Prob. 2QSCh. 20 - Prob. 3QSCh. 20 - Prob. 4QSCh. 20 - Prob. 5QSCh. 20 - Prob. 6QSCh. 20 - Prob. 7QSCh. 20 - Prob. 8QSCh. 20 - Prob. 9QSCh. 20 - Prob. 10QSCh. 20 - Prob. 11QSCh. 20 - Prob. 12QSCh. 20 - Prob. 13QSCh. 20 - Prob. 14QSCh. 20 - Prob. 15QSCh. 20 - Prob. 16QSCh. 20 - Prob. 17QSCh. 20 - Prob. 18QSCh. 20 - Prob. 19QSCh. 20 - Prob. 20QSCh. 20 - Prob. 21QSCh. 20 - Prob. 22QSCh. 20 - Prob. 23QSCh. 20 - Recording costs of labor P2 Prepare journal...Ch. 20 - Prob. 25QSCh. 20 - Prob. 26QSCh. 20 - Prob. 27QSCh. 20 - Prob. 1ECh. 20 - Prob. 2ECh. 20 - Prob. 3ECh. 20 - Prob. 4ECh. 20 - Prob. 5ECh. 20 - Prob. 6ECh. 20 - Prob. 7ECh. 20 - Prob. 8ECh. 20 - Prob. 9ECh. 20 - Prob. 10ECh. 20 - Prob. 11ECh. 20 - Prob. 12ECh. 20 - Prob. 13ECh. 20 - Prob. 14ECh. 20 - Prob. 15ECh. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Exercise 20-19 Production cost flows P1 P2 P3 P4...Ch. 20 - Exercise 20-20 Weighted average: Process cost...Ch. 20 - Exercise 20-21 Recording costs of...Ch. 20 - Prob. 22ECh. 20 - Prob. 23ECh. 20 - Exercise 20-24 Recording cost of completed...Ch. 20 - Prob. 25ECh. 20 - Prob. 26ECh. 20 - Prob. 27ECh. 20 - Prob. 1APSACh. 20 - Prob. 2APSACh. 20 - Prob. 3APSACh. 20 - Prob. 4APSACh. 20 - Prob. 5APSACh. 20 - Prob. 6APSACh. 20 - Prob. 7APSACh. 20 - Prob. 1BPSBCh. 20 - Prob. 2BPSBCh. 20 - Prob. 3BPSBCh. 20 - Prob. 4BPSBCh. 20 - Prob. 5BPSBCh. 20 - Prob. 6BPSBCh. 20 - Prob. 7BPSBCh. 20 - Prob. 20SPCh. 20 - Prob. 20CPCh. 20 - Prob. 1GLPCh. 20 - Prob. 1BTNCh. 20 - Prob. 2BTNCh. 20 - Prob. 3BTNCh. 20 - Prob. 4BTNCh. 20 - Prob. 5BTNCh. 20 - Prob. 6BTNCh. 20 - Prob. 7BTNCh. 20 - Prob. 8BTNCh. 20 - Prob. 9BTN
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