Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 11ME
To determine
Concept introduction:
Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.
To calculate:
Physical units’ reconciliation and Number of equivalent units using the FIFO method
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Students have asked these similar questions
Case 6-20 Effect of Incorrect Costing across Departments-Weighted-Average Me
LO5]
Tavia Limited manufactures a plastic gasket that is used in automobile engines. The gaskets go through th
Mixing, Forming, and Stamping. The company's accountant (who is very inexperienced) has prepared a su
costs for the Forming Department for October, as follows:
Work in process inventory, October 1 (10,500 units;
materials 100% complete; conversion 7/8 complete)
Costs transferred in from the Mixing Department
Material added during October (added when processing is
50% complete in the Forming Department)
Conversion costs added during October
Total departmental costs
Forming Department costs assigned to:
Units completed and transferred to the Stamping Department (120,000 units at
$3.81451 each)
Work in process inventory, October 31 (5,500 units,
conversion 2/5 complete)
Total departmental costs assigned
$ 45,045*
148,130
Required:
56,880
207,686
$457,741
$457,741
0
$457,741
*Consists of cost transferred…
Please show working
Part A of question, see images.
Part B of question,
Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to two decimal places.
Increase or Decrease
Amount
Change in direct materials cost per equivalent unit
$
Change in conversion cost per equivalent unit
$
Assume the company uses the FIFO method.Prepare a schedule of equivalent units, and compute the unit cost for the month of December.
Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Briefly describe the difference between job order...Ch. 3 - Prob. 2QCh. 3 - Explain the differences between Raw Materials...Ch. 3 - Explain the flow of costs in a process costing...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - What triggers the cost of manufacturing to be...Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - The primary difference between FIFO and...Ch. 3 - Prob. 9MCCh. 3 - Prob. 10MCCh. 3 - Prob. 1MECh. 3 - Prob. 2MECh. 3 - Prob. 3MECh. 3 - Prob. 4MECh. 3 - Prob. 5MECh. 3 - Calculation Cost per Equivalent unit...Ch. 3 - Prob. 7MECh. 3 - Prob. 8MECh. 3 - Prob. 9MECh. 3 - Prob. 10MECh. 3 - Prob. 11MECh. 3 - Prob. 12MECh. 3 - Calculating Equivalent Units (FIFO) The Cuttilg...Ch. 3 - Compare Weighted-Average and FIFO Process Costing...Ch. 3 - Prob. 15MECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Calculating Equivalent Units, Unit Costs, and Cost...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Recording Manufacturing Costs in Process Costing...Ch. 3 - Prob. 1.1GAPCh. 3 - Prob. 1.2GAPCh. 3 - Prob. 2GAPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 3.2GAPCh. 3 - Prob. 4GAPCh. 3 - Prob. 5.1GAPCh. 3 - Prob. 5.2GAPCh. 3 - Prob. 6GAPCh. 3 - Prob. 1.1GBPCh. 3 - Prob. 1.2GBPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 4GBPCh. 3 - Prob. 5.1GBPCh. 3 - Prob. 5.2GBPCh. 3 - Prob. 6GBP
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- a. Based upon the data in Exercise 17-7, determine the following for December: 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during December 4. Cost of units started and completed during December 5. Cost of the ending work in process b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?arrow_forwardDetermine the equivalent units of production for both DM and conversion costs this year for the Splish machining department under the weighted-average method. DM Conversion Costs Total equivalent units of work done this period enter a number of units enter a number of units C:arrow_forwardPrepare a cost of production, presenting the following computations: A. 1. Direct materials and conversion equivalent units of production for August. 2. Direct materials and conversion costs per equivalent unit for August. 3. Cost of goods finished during August 4.Cost of work in process at August 31 B. Commute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July)arrow_forward
- Required: 1. Reconcile the number of physical units to find the missing amounts. 2. Calculate the number of equivalent units for both materials and conversion for each month using the weighted-average method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Reconcile the number of physical units to find the missing amounts. Beginning Work in Process Month February June September December Units 1,300 4,800 2,900 Conversion Complete (percent) 44 68 27 40 • Units Units Started Transferred Out 19,000 23,400 25,500 22,600 Required 1 25,100 21,300 Ending Work in Process Units 7,500) 3,400 3,000 Required 2 > Conversion Complete (percent) 24 36 51 79arrow_forwardRequirements: USE WEIGHTED AVERAGE METHOD the unit cost of materials, rounded to 2 decimal places, for March is equivalent unit conversion cost, rounded to 2 decimal places, for March is the total equivalent units of production for direct materials is the total cost of the units in the ending work-in-process inventory at March 31 isarrow_forwardEquivalent Units, Unit Cost, Weighted AverageRefer to the information for Alfombra Inc. on the previous page.Required:1. Prepare a physical flow analysis for the throw rug department for August.2. Calculate equivalent units of production for the throw rug department for August.3. Calculate the unit cost for the throw rug department for August.4. Show that the cost per unit calculated in Requirement 3 is a weighted average ofthe FIFO cost per equivalent unit in BWIP and the FIFO cost per equivalent unitfor August. (Hint: The weights are in proportion to the number of units from eachsource.)arrow_forward
- The first production department of Stone Incorporated reports the following for April. Direct Materials Percent Complete 75% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 73,000 387,000 365,000 95,000 85% Conversion Percent Complete 25% 35%arrow_forwarda. Based on the data in Exercise 20-7 (Attachment), determine the following for March:1. Direct materials cost per equivalent unit2. Conversion cost per equivalent unit3. Cost of the beginning work in process completed during March4. Cost of units started and completed during March5. Cost of the ending work in processb. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?arrow_forwardCompute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method (see picture).arrow_forward
- a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.)arrow_forwardCompute the unit costs for conversion cost for the month of September.arrow_forwardComputing the cost per EUP, second department The Finishing Department reports the following data for the month: Calculate the cost per equivalent units of production for each input. The company uses the weighted-average method.arrow_forward
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