Concept explainers
This exercise relates to the Double Diamond Skis’ Shaping and Milling Department that was discussed earlier in the chapter. The Excel worksheet form that appears below consolidates data from Exhibits 5-5 and 5-8. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.
You should proceed to the requirements below only after completing your worksheet.
Required:
- Check your worksheet by changing the beginning work in process inventory to 100 units, the units started into production during the period to 2,500 units, and the units in ending work in process inventory to 200 units, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the cost per equivalent unit for materials should now be $152.50 and the cost per equivalent unit for conversion should be $145.50. If you do not get these answers, find the errors in your worksheet and correct them. How much is the total cost of the units transferred out? Did it change? Why or why not?
Total cost of units transferred out.
Unit of goods completed in the production process and transferred to other department during in the period, cost incurred to this completed goods which includes material and conversions jointly is known as total cost of units transferred out.
Total cost of the units transferred out and its cost is changed or not.
Answer to Problem 1AE
Solution:
Costs per equivalent unit | Materials | Conversion |
Cost of beginning work in process inventory | 9600 |
5575 |
Cost added during the period | 368600 | 350900 |
Total Cost | 378200 | 356475 |
Equivalent unit of production | 2480 | 2450 |
Cost per equivalent unit | 152.50 | 145.50 |
Total cost of the units transferred out is $715,200.
Yes, total cost of the units transferred out was changed because current equivalent unit of production was decreased at the same time cost per equivalent unit has increased.
Explanation of Solution
Explanations:
Formulas used:
Calculations:
- Total cost for material= $9600 + $368600=$378,200
Total cost for conversion= $5575+$350900=$356475
Equivalent unit of production for materials = 2400 units +80 units (200 units *40/100=80) =2480units
Equivalent unit of production for conversion = 2400 units +50 units (200 units * 25/100=50) =2450 units.
Cost per equivalent unit for material = $378,200 / 2480units = $152.50
Cost per equivalent unit for conversion=$356475 / 2450 units = $145.50
Units complete and transferred during in the period = 2500 units -100 units=2400
Total cost of the units transferred out = 2400 * $298 ($152.50+$145.50=$298) =$715,200.
Above calculation derived given cost per equivalent unit for materials as well as conversion also derived total cost of the units transferred and above explanation stated total cost of the units transferred out was changed.
Want to see more full solutions like this?
Chapter 5 Solutions
Introduction to Managerial Accounting - Connect Access
- Please help fill out the attached excel example to answer instructions of problem 13-13! Instead of just whoing the correct answers, can you please include the formula you used to get the answers so I can learn how to do the work! Thank you!arrow_forwardHello i have attached two pictures. They are both used together to answer the question. The first picture is the information to use too answer the question plus the spreadsheet. The second attachment is the questions I HAVE DONE ALREADY PLEASE DO NOT ANSWER 1,2 or 3 as i have answered it already. I hope it is understandable and whoever answer this can please explain how they got the answers. I need the help I need help on question 4,5,6 4. Prepare a direct labor cost budget for march 5. Prepare a factory overhead cost budger for march 6. Prepare a cost of good sold budget for march. Work in process at the beginning of march is estimated to be $15,300, and work in process at the end of march is desire to be $14,800 please answer thesearrow_forwardPlease complete the required and bonus either way and please allow the charts to be copy and pasted to a word document for editingarrow_forward
- Please use the workbook page, it has the steps on how to solve the problems.arrow_forwardThe instructions for this practice worksheet are in the first picture (2 word document) - the second picture has the excel worksheet to input answers. I’m having a difficult time understanding how to do this - thank you!arrow_forwardyou will find an article in a scholarly journal dealing with items from the reading of chapters 1 to 4 in the textbook. Topics may include Accounting Information Systems, Enterprise Systems, E-business, and understanding how accounting information systems works. Then, you will write a summary on this article, The student will post one thread of at least 1000 - 2000 wordsarrow_forward
- I need help to do questions 8, 9, and 11 for the Excel Worksheet. Also, please make sure that you provide the steps carefully and get to understand the work as possible. Those questions that I will provide you would be from Microsoft Word.arrow_forwardThis question is a question found in the library and the explanation is given on how you all worked it in excel I want to know how to solve it manually. This helps me to better grasp the concepysarrow_forwardFor this problem, there are 10 future value and present value exercises to be solved. Review the printout of the worksheet file COMPOUND that follows these requirements. This file also contains a second sheet called the Answer Sheet. Note that the worksheet is divided into four sections. You have to decide which section is appropriate for each exercise. Open the file COMPOUND from the website for this book at cengagebrain.com. To enter the four formulas in the appropriate cells, use the FV and PV functions for the annuities (see Appendix A in Excel Quick for a discussion of them). Unfortunately Excel does not provide functions for the future value of an amount nor the present value of an amount. Enter the following formulas for FORMULA1 and FORMULA2: FORMULA1: =B6*((1+B8)^B7) FORMULA2: =E6/((1+E8)^AE7) For the annuity calculations (FV and PV), it is important that you enter a value (or cell reference) for type to indicate the timing of the first payment. If the first payment is made…arrow_forward
- Please answer the questions after opening the attached screenshot! I need answers for the bold blank spaces you will see in the excel sheet.arrow_forwardReview the PetMed Express and create an Excel table updating exhibit 2 and create a bar chart for key data. Information can be obtained from the company's annual report.arrow_forwardA table of data for a library is shown in the table. Normalize these data into the third normal form, preparing it for use in a relational database environment. The library’s computer is programmed to compute the due date to be 14 days after the checkout date. Document the steps necessary to normalize the data similar to the procedures found in the chapter. Index any fields necessary and show how the databases are related.arrow_forward
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning