Question
In: Accounting
Corona Ltd. provides the costs for its single product using process costing. Direct material is added...
Corona Ltd. provides the costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
Percent Complete
Physical units Materials Conversion
Work in process, August 1 30,000 40% 80%
Units started during August 80,000
Units completed and transferred
out during August 90,000
Work in process, August 31 20,000 50% 30%
Total DirectMaterials Conversion
Work in process, August 1 $328,000 $200,000 $128,000
Costs incurred during August $410,000 $250,000 $160,000
Total costs to account for $738,000 $450,000 $288,000
Required (show your working in a tabular format):
Using weighted-average process costing in completing the following requirements:
(a) Determine the equivalent units for August.
(b) Compute the costs per equivalent unit.
(c) Compute the cost of goods completed and transferred out during August
(d) Compute the cost remaining in the work in process inventory on August 31.
(e) Prepare a journal entry to record the transfer of the cost of goods completed and transferred out.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Rigby Ltd accumulates costs for its single product using process costing.
Rigby Ltd accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. The following is a partially completed production report for May.Production report, MayPhysicalunitsPercentage ofcompletion with respectto conversionEquivalent unitsDirect materialsConversionWork in process, 1 May25,00040%Units started during May30,00055,000Units completed and transferred out during May35,00035,00035,000Work in process, 31 May20,00080%20,00016,000Total units accounted for55,000Direct materialConversionTotalWork in process, 1 May$143,000$474,700$617,700Costs incurred during May$165,000$2,009,000$2,174,000Total costs to account for$308,000$2,483,700$2,791,700Required:a)...
Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added...
Victory Company uses weighted-average process costing to account
for its production costs. Direct labor is added evenly throughout
the process. Direct materials are added at the beginning of the
process. During November, the company transferred 700,000 units of
product to finished goods. At the end of November, the goods in
process inventory consist of 180,000 units that are 30% complete
with respect to labor. Beginning inventory had $420,000 of direct
materials and $139,000 of direct labor costs. The direct material...
Victory Company uses weighted-average process costing to account for its production costs. Direct labor is added...
Victory Company uses weighted-average process costing to account
for its production costs. Direct labor is added evenly throughout
the process. Direct materials are added at the beginning of the
process. During November, the company transferred 700,000 units of
product to finished goods. At the end of November, the goods in
process inventory consists of 180,000 units that are 30% complete
with respect to labor. Beginning inventory had $420,000 of direct
materials and $139,000 of direct labor cost. The direct material...
Costs for Product Y Direct material $90 Direct labo
Costs for Product
Y
Direct
material
$90
Direct
labor
45
Variable Factory
Overhead
35
Variable Selling
Costs
5
Fixed Factory
Overhead*
30
Fixed Selling
Costs*
10
Total
Cost per
unit
$215
*Reflects common (allocated) costs
that will not change with special order
Capacity = 200,000 units, currently producing 120,000
units
The normal selling price per unit =
$250
The special order: A customer outside the normal
market offers to purchase 60,000 units of Product Y. Variable...
Corny Inc. produces a single product in a process costing environment. All materials are added when...
Corny Inc. produces a single product in a process costing
environment. All materials are added when the conversion process is
60% complete. For the current period the following information is
given:
Units Material Costs Conversion Costs
Beginning Inventory
3,500
$4,500
$5,400
Started During the Current Period
20,000
$32,000
$78,200
Ending Inventory
2,000
The beginning inventory was 40% complete as to conversion, while
the ending inventory was 70% completed for conversion purposes.
Corny uses the weighted-average costing method.
The cost per...
P5.34 - Weighted average process costing: manufacturer Triangle zipper company accumulates costs for its single product...
P5.34 - Weighted average process
costing: manufacturer Triangle zipper company accumulates costs for
its single product using process costing. Direct material is added
at the beginning of the production process, and conversion activity
occurs uniformly throughout the process. A partially completed
production report for May follows.
Production report, May
Percentage of completion with respect to conversion
Equivalent units
Physical units
Direct materials
Conversion
Work in process, 1 May
25000
40%
Units started during May
30000
55000
Units completed and transferred...
Process Costing – Packaging Department Direct materials are added 90% at the beginning of the process...
Process Costing – Packaging Department
Direct materials are added 90% at the beginning of the process
and the remaining 10% are added when the cereal is 50% complete
with the packaging process. Direct labor and overhead are added
evenly throughout the process.
Table 8 – Unit and cost information
Cost
Physical Units
Transferred-in
Direct Materials
Direct Labor
Overhead
Beg WIP
4,000 (40% complete)
$14,300
$720
$347.48
$140
Transferred In
43,964
$170,361.40
End WIP
5,000 (30% complete)
Added during Qtr 1:...
Fast Co. produces its product through a single processing department. Direct materials are added at the...
Fast Co. produces its product through a single processing
department. Direct materials are added at the start of production,
and conversion costs are added evenly throughout the process. The
company uses monthly reporting periods for its weighted-average
process costing system. The Work in Process Inventory account has a
balance of $92,300 as of October 1, which consists of $19,500 of
direct materials and $72,800 of conversion costs.
During the month the company incurred the following
costs:
Direct materials
$171,600
Conversion...
Fast Co. produces its product through a single processing department. Direct materials are added at the...
Fast Co. produces its product through a single processing
department. Direct materials are added at the start of production,
and conversion costs are added evenly throughout the process. The
company uses monthly reporting periods for its weighted-average
process costing system. The Work in Process Inventory account has a
balance of $98,300 as of October 1, which consists of $21,300 of
direct materials and $77,000 of conversion costs.
During the month the company incurred the following
costs:
Direct
materials
$
160,150...
Fast Co. produces its product through a single processing department. Direct materials are added at the...
Fast Co. produces its product through a single processing
department. Direct materials are added at the start of production,
and conversion costs are added evenly throughout the process. The
company uses monthly reporting periods for its weighted-average
process costing system. The Work in Process Inventory account has a
balance of $100,300 as of October 1, which consists of $21,900 of
direct materials and $78,400 of conversion costs.
During the month the company incurred the following
costs:
Direct
materials
$
181,800...
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