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    1843 Question Help

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    chong chojun balsa
    Missouri Corporation provides information about work in process at its plant for two separate questions. For both questions, it gives beginning inventory levels, units started and transferred out, and ending inventory levels. It is asked to calculate equivalent units for materials and conversion costs using weighted average and FIFO costing methods to value the work in process for inventory. El Paso Corporation provides similar information for one of its departments for September. It is asked to prepare a production cost report using FIFO costing, showing physical and equivalent units as well as costs for work in process at the beginning, during the period, and at the end of the period. Douglas Toys uses FIFO costing and is given multiple periods of information

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    1843 Question Help

    Uploaded by

    chong chojun balsa
    120 views9 pages
    Missouri Corporation provides information about work in process at its plant for two separate questions. For both questions, it gives beginning inventory levels, units started and transferred out, and ending inventory levels. It is asked to calculate equivalent units for materials and conversion costs using weighted average and FIFO costing methods to value the work in process for inventory. El Paso Corporation provides similar information for one of its departments for September. It is asked to prepare a production cost report using FIFO costing, showing physical and equivalent units as well as costs for work in process at the beginning, during the period, and at the end of the period. Douglas Toys uses FIFO costing and is given multiple periods of information

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    Cost accounting

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    Missouri Corporation provides information about work in process at its plant for two separate questions. For both questions, it gives beginning inventory levels, units started and transferred out, and ending inventory levels. It is asked to calculate equivalent units for materials and conversion costs using weighted average and FIFO costing methods to value the work in process for inventory. El Paso Corporation provides similar information for one of its departments for September. It is asked to prepare a production cost report using FIFO costing, showing physical and equivalent units as well as costs for work in process at the beginning, during the period, and at the end of the period. Douglas Toys uses FIFO costing and is given multiple periods of information

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    120 views9 pages

    1843 Question Help

    Uploaded by

    chong chojun balsa
    Missouri Corporation provides information about work in process at its plant for two separate questions. For both questions, it gives beginning inventory levels, units started and transferred out, and ending inventory levels. It is asked to calculate equivalent units for materials and conversion costs using weighted average and FIFO costing methods to value the work in process for inventory. El Paso Corporation provides similar information for one of its departments for September. It is asked to prepare a production cost report using FIFO costing, showing physical and equivalent units as well as costs for work in process at the beginning, during the period, and at the end of the period. Douglas Toys uses FIFO costing and is given multiple periods of information

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 9

    Question NUmber 1

    Missouri Corporation shows the following information concerning the work in process at its plant:

    Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are
    59 percent complete).
    Started this month, 60,100 units.
    Transferred out, 50,000 units.
    Ending inventory, 19,400 units (materials are 100 percent complete; conversion costs are 15 percent
    complete).

    Required:
    (a) Compute the equivalent units for materials using the weighted-average method.

    Equivalent Unites:

    (b) Compute the equivalent units for conversion costs using the weighted-average method.

    Equivalent Unites:

    Question number 2:
    Missouri Corporation shows the following information concerning the work in process at its plant:

    Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are
    61 percent complete).
    Started this month, 60,000 units.
    Transferred out, 50,300 units.
    Ending inventory, 19,600 units (materials are 100 percent complete; conversion costs are 17 percent
    complete).

    Required:
    (a) Compute the equivalent units for materials using FIFO.

    Equivalent Unites:

    (b) Compute the equivalent units for conversion costs using FIFO.

    Equivalent Unites:
    Question Number 3

    Assume that El Paso Corporation provides you with the following information for one of its
    departments operations for September (no new material is added in Department B):

    WIP inventoryDepartment B
    Beginning inventory (8,200 units, 20% complete with
    respect to Department B costs)
    Transferred-in costs (from Department A) $ 35,830
    Department B conversion costs 8,930
    Current work (18,900 units started)
    Prior department costs 88,830
    Department B costs 167,020

    The ending inventory has 3,200 units, which are 50 percent complete with respect to Department B costs
    and 100 percent complete for prior department costs.

    Required:
    Use a production cost report using FIFO. (Round your amounts to the nearest whole unit/dollar except
    for "cost per equivalent unit" which should be rounded to two decimal places.)

    Physical Units Equivalent Units

    Prior Department Department B


    Flow of units:
    Units to be accounted for:
    Beginning WIP inventory
    Units started this period
    Total units to account for 0
    Units accounted for:
    Completed and transferred out
    From beginning WIP inventory
    Prior department
    Department B
    Started and completed currently
    Units in ending WIP inventory
    Prior department
    Department B
    Total units accounted for

    Total Prior department Department B


    Flow of costs:
    Costs to be accounted for:
    Costs in beginning WIP inventory
    Current period costs
    Total costs to be accounted for $0 $0 $0
    Cost per equivalent unit
    Prior department
    Department B
    Costs accounted for:
    Costs assigned to units transferred out:
    Costs from beginning WIP inventory
    Current costs added to complete beginning
    WIP inventory
    Prior department
    Department B
    Current costs of units started and completed:
    Prior department
    Department B
    Total costs transferred out $0 $0 $0
    Cost of ending WIP inventory
    Prior department
    Department B
    Total costs accounted for $0 $0 $0
    Question Number 4
    Douglas Toys is a manufacturer that uses FIFO costing method to account for costs of production. It
    produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The following
    information was obtained for the Assembling Department for the month of September.
    Work in process on September 1 had 107,000 units made up of the following:

    Degree of
    Amount Completion
    Prior department costs transferred in from the Molding
    $ 145,520 100%
    Department

    Costs added by the Assembling Department


    Direct materials $ 96,300 100%
    Direct labor 36,169 70%
    Manufacturing overhead 19,012 50%

    $ 151,481

    Work in process, September 1 $ 297,001

    During September, 507,000 units were transferred in from the Molding Department at a cost of
    $689,520. The Assembling Department added the following costs:

    Direct materials $ 437,670


    Direct labor 164,241
    Manufacturing
    74,808
    overhead

    Total costs
    $ 676,719
    added

    Assembling finished 407,000 units and transferred them to the Finishing Department.
    At September 30, 207,000 units were still in work-in-process inventory. The degree of completion of
    work-in-process inventory at September 30 was as follows:

    Direct materials 90%


    Direct labor 80
    Manufacturing overhead 30

    Required:
    (a) Prepare a production cost report using FIFO. (Round your answer to 2 decimal places.)
    DOUGLAS TOYS
    Assembling Department
    Production Cost ReportFIFO
    Flow of
    Production COMPUTE EQUIVALENT UNITS
    Units
    Prior
    Physical Manufacturing
    Department Materials Labor
    Units Overhead
    Costs
    Units to be
    accounted
    for:
    Beginning
    WIP
    inventory
    Units
    started this
    period
    Total units to
    be
    0
    accounted
    for
    Units
    accounted
    for:
    Units
    completed
    and
    transferred
    out:
    From
    beginning
    inventory
    Started
    and
    completed
    currently
    Units in
    ending WIP
    inventory
    Total units
    accounted 0 0 0 0 0
    for
    Costs DETAILS
    Prior
    Total Manufacturing
    Department Materials Labor
    Costs Overhead
    Costs
    Costs to be accounted
    for:
    Costs in beginning
    WIP inventory
    Current period costs
    Total costs to be
    $0 $0 $0 $0 $0
    accounted

    Cost per equivalent


    unit:
    Prior department
    costs
    Materials
    Labor
    Manufacturing
    overhead

    DETAILS
    Prior
    Manufacturing
    Total Costs Department Materials Labor
    Overhead
    Costs
    Costs accounted for:
    Costs assigned to
    units transferred out:
    Costs from
    beginning WIP
    inventory
    Current costs
    added to complete
    beginning WIP
    inventory:
    Prior department
    costs
    Materials
    Labor
    Manufacturing
    overhead
    Total costs from
    $0
    beginning inventory
    Current costs of units
    started and
    completed:
    Prior department
    costs
    Materials
    Labor
    Manufacturing
    overhead
    Total costs of units
    $0
    started and completed
    Total costs of units
    $0
    transferred out
    Costs assigned to
    ending WIP inventory:
    Prior department
    costs
    Materials
    Labor
    Manufacturing
    overhead
    Total ending WIP
    $0
    inventory
    Total costs accounted
    $0 $0 $0 $0 $0
    for
    Question Number 5

    Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40.
    Washington manufactures the carts in two assembly departments: Department A and Department B. All
    three models are processed initially in Department A, where all material is assembled. The X-10 model is
    then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are
    transferred to Department B for final assembly, and then transferred to finished goods.

    There were no beginning work-in-process inventories on April 1. Data for April are shown in the
    following table. Ending work in process is 20 percent complete in Department A and 60 percent complete
    in Department B. Conversion costs are allocated based on the number of equivalent units processed in
    each department.

    Total X-10 X-20 X-40


    Units started 470 330 300
    Units
    completed in 440 250 180
    Department A
    Units
    completed in 230 165
    Department B
    Materials $ 390,750 $35,250 $115,500 $240,000

    Conversion
    costs:
    Department
    $ 274,800
    A
    Department
    41,600
    B

    Total
    conversion $ 316,400
    costs

    Required:
    (a) What is the unit cost of each model transferred to finished goods in April? (Do not round
    intermediate calculations. Round final answers to the nearest dollar amounts and units.)

    (b) What is the balance of work-in-process inventory on April 30 for Department A? Department B? (Do
    not round intermediate calculations. Round final answers to the nearest dollar amounts and
    units.)

    Department A Department B
    Balance of work-in-process ending inventory

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