Exercise 4-2 Group Work
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Exercise 4-2 Compute of Equivalent Units-Weight-Average Method
Clonex Labs, Inc. uses a process costing system. The following data are available for one department for October. percentage complete units
Materials
Conversion
Work in process, October 1…………..
30,000
65%
30%
Work in process, October31………….
15,000
80%
40%
The department started 175,000 units into production during the month and transferred 190,000 complete units to the next department.
Required : Compute the equivalent units of production for October assuming that the company uses the weighted-average method of accounting for units and costs.
Answer :
Clonex Labs, Inc. Units transferred to the next department
Materials
Conversion
15,000
15,000
Ending work in process : Materials : 15000x80%
12,000
Conversion : 15000x40%
6000 27,000
21,000
Exercise 4-3 Cost per equivalent unit-Weight-Average Method
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below :
Materials Work in process, May 1
$18,000
Cost added during May
$238,900
Equivalent units of production
35,000
labor
Overhead
$5,500
$27,500
$80,000 $401,500 33,000
33,000
Required : Compute the cost per equivalent unit for materials, for labor, and for overhead.
Answer : Superior Micro Products
Materials
Labor
Overhead
Cost of beginning work in process inventory
$ 18,000
$5,500
$27,500
Cost added during the period
$238,900
$80,300
$401,500
Total Cost
$256,900
$85,800
$429,000
Equivalent units of production
35,000
33,000
33,000
Cost per equivalent unit
$7.34
$2.6
$13
Exercise 4-4 Applying Costs to Units-Weighted Average Method
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below : Material Equivalent units of production in ending work in process
300
Cost per equivalent unit
$31.56
Conversion 100 $9.32
A total of 1,300 units were completed and transferred to the next processing department during the period.
Required : Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory. Prep Department Costs of Ending Work in Process inventory and the Units Transferred Out Materials
Conversion
Total
Ending Work in process inventory : Equivalent units of production
300
100
Cost per equivalent unit
$31.56
$9.32
$9,468
$932
Units transferred to the next department
1,300
1,300
Cost per equivalent unit
$31.56
$9.32
Cost of units transferred
$41,028
$12,116
$10,400 Units complete and transferred out :
Exercise 4-5 Compute of Equivalent Units-FIFO Method
$53,144
QualCon, Inc. produces wine bottles for vintners in a process that starts in the Melt and Mold Department. Data concerning that department’s operations in the most recent period appear below : Beginning work in process : Units in process
400
Stage of completion with respect to materials
75%
Stage of completion with respect to conversion
25%
Units started into production during the month
42,600
Units completed and transferred out
42,500
Ending work in process : Units in process
500
Stage of completion with respect to materials
80%
Stage of completion with respect to conversion
30%
Required : QualCon uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Melt and Mold Department. Answer : Materials
Conversion
To complete beginning work in process Materials :400x(100%-75%)
100
Conversion :400x(100%-25%) Units started and complete during the period
300 100
100
Ending work in process : Materials : 500x80%
400
Conversion : 500x30% Equivalent units of production
Exercise 4-6Cost Per Equivalent Units-FIFO method
150 600
550
Superior Micro Products uses the FIFO method in its process costing system. Data for the Assembly Department for May appear below :
Cost added during May
Materials
Labor
Overhead
$193,320
$62,000
$310,000
Equivalent units of production
27,000
25,000
25,000
Required : Compute the cost per equivalent unit for materials, labor, and overhead, and in total
Answer : Superior Micro Product Cost per Equivalent Unit-FIFO Method Materials
Labor
Overhead
Cost added during the period
$193,320
$62,000
$310,000
Equivalent units of production
27,000
25,000
25,000
$2.48
$12.4
Cost per equivalent unit
Exercise 4-7 Applying Cost to Units-FIFO Method
$7.16
Answer :
Mixing Department Costs of Ending Work in Process and Units Transferred Out-FIFO method Materials
Conversion
800
200
$4.40
$1.30
$3520
$260
$27,000
$380
beginning work in process inventory
400
700
Cost per Equivalent unit
$4.40
$1.30
$1.760
$910
8000
8000
$4.40
$1.30
Total
Ending Work in Process, inventory : Equivalent Units of Production
$3780
Units transferred out : Cost in beginning Work in Process inventory Equivalent units of production required to complete the
Cost of Units started and Complete this period
$35,200 $52,050
$10,400
$2,670
$45,600
Clonex Labs, Inc. uses a process costing system. The following data are available for one department for October. percentage complete units
Materials
Conversion
Work in process, October 1…………..
30,000
65%
30%
Work in process, October31………….
15,000
80%
40%
The department started 175,000 units into production during the month and transferred 190,000 complete units to the next department.
Required : Compute the equivalent units of production for October assuming that the company uses the weighted-average method of accounting for units and costs.
Answer :
Clonex Labs, Inc. Units transferred to the next department
Materials
Conversion
15,000
15,000
Ending work in process : Materials : 15000x80%
12,000
Conversion : 15000x40%
6000 27,000
21,000
Exercise 4-3 Cost per equivalent unit-Weight-Average Method
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below :
Materials Work in process, May 1
$18,000
Cost added during May
$238,900
Equivalent units of production
35,000
labor
Overhead
$5,500
$27,500
$80,000 $401,500 33,000
33,000
Required : Compute the cost per equivalent unit for materials, for labor, and for overhead.
Answer : Superior Micro Products
Materials
Labor
Overhead
Cost of beginning work in process inventory
$ 18,000
$5,500
$27,500
Cost added during the period
$238,900
$80,300
$401,500
Total Cost
$256,900
$85,800
$429,000
Equivalent units of production
35,000
33,000
33,000
Cost per equivalent unit
$7.34
$2.6
$13
Exercise 4-4 Applying Costs to Units-Weighted Average Method
Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below : Material Equivalent units of production in ending work in process
300
Cost per equivalent unit
$31.56
Conversion 100 $9.32
A total of 1,300 units were completed and transferred to the next processing department during the period.
Required : Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory. Prep Department Costs of Ending Work in Process inventory and the Units Transferred Out Materials
Conversion
Total
Ending Work in process inventory : Equivalent units of production
300
100
Cost per equivalent unit
$31.56
$9.32
$9,468
$932
Units transferred to the next department
1,300
1,300
Cost per equivalent unit
$31.56
$9.32
Cost of units transferred
$41,028
$12,116
$10,400 Units complete and transferred out :
Exercise 4-5 Compute of Equivalent Units-FIFO Method
$53,144
QualCon, Inc. produces wine bottles for vintners in a process that starts in the Melt and Mold Department. Data concerning that department’s operations in the most recent period appear below : Beginning work in process : Units in process
400
Stage of completion with respect to materials
75%
Stage of completion with respect to conversion
25%
Units started into production during the month
42,600
Units completed and transferred out
42,500
Ending work in process : Units in process
500
Stage of completion with respect to materials
80%
Stage of completion with respect to conversion
30%
Required : QualCon uses the FIFO method in its process costing system. Compute the equivalent units of production for the period for the Melt and Mold Department. Answer : Materials
Conversion
To complete beginning work in process Materials :400x(100%-75%)
100
Conversion :400x(100%-25%) Units started and complete during the period
300 100
100
Ending work in process : Materials : 500x80%
400
Conversion : 500x30% Equivalent units of production
Exercise 4-6Cost Per Equivalent Units-FIFO method
150 600
550
Superior Micro Products uses the FIFO method in its process costing system. Data for the Assembly Department for May appear below :
Cost added during May
Materials
Labor
Overhead
$193,320
$62,000
$310,000
Equivalent units of production
27,000
25,000
25,000
Required : Compute the cost per equivalent unit for materials, labor, and overhead, and in total
Answer : Superior Micro Product Cost per Equivalent Unit-FIFO Method Materials
Labor
Overhead
Cost added during the period
$193,320
$62,000
$310,000
Equivalent units of production
27,000
25,000
25,000
$2.48
$12.4
Cost per equivalent unit
Exercise 4-7 Applying Cost to Units-FIFO Method
$7.16
Answer :
Mixing Department Costs of Ending Work in Process and Units Transferred Out-FIFO method Materials
Conversion
800
200
$4.40
$1.30
$3520
$260
$27,000
$380
beginning work in process inventory
400
700
Cost per Equivalent unit
$4.40
$1.30
$1.760
$910
8000
8000
$4.40
$1.30
Total
Ending Work in Process, inventory : Equivalent Units of Production
$3780
Units transferred out : Cost in beginning Work in Process inventory Equivalent units of production required to complete the
Cost of Units started and Complete this period
$35,200 $52,050
$10,400
$2,670
$45,600
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