Chapter 16: Q14QS (page 746)
Refer to the information in QS 16-10. Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the FIFO method
EUP for material:10,200 Units
EUP for conversion:9,100 Units
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Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of \(21,300 on November 1, which consisted of \)6,800 of direct materials and \(14,500 of conversion costs.
During the month, the company incurred the following costs:
Direct materials | \) 116,400 |
Conversion | 1,067,000 |
During November, the company started 104,500 units and transferred 100,000 units to finished goods. At the end of the month, the work in process inventory consisted of 12,000 units that were 100% complete with respect to direct materials and 25% complete with respect to conversion.
Required
Question: Companies such as Apple commonly prepare a process cost summary. What purposes does a process cost summary serve?
Prepare journal entries to record the following production activities.
1. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost \(135,600.
2. Sold \)315,000 of goods on credit. Their cost is $175,000.
The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials and 40% complete as to conversion costs. The beginning inventory cost of \(60,100 consisted of \)44,800 of direct materials costs and \(15,300 of conversion costs.
During the month, the forming department started 300,000 units. At the end of the month, the forming department had 30,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
Beginning work-in-process inventory | \)60,100 |
Direct material added during the month | 1,231,200 |
Conversion added during the month | 896,700 |
1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
The following refers to units processed in Sunflower Printing’s binding department in March. Prepare a physical flow reconciliation.
Unit of product | Percent of conversion added | |
Beginning work-in-process | 150,000 | 80% |
Goods started | 310,000 | 100 |
Goods completed | 340,000 | 100 |
Ending work-in-process | 120,000 | 25 |
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