Question
In: Accounting
McIlhenny Company McIlhenny Company adds material at the start of production. The following production information is...
McIlhenny Company
McIlhenny Company adds material at the start of production. The
following production information is available for June:
| Beginning Work in Process Inventory | |||
| (35% complete as to conversion) |
10,000 |
units | |
| Started this period |
120,000 |
units | |
| Ending Work in Process Inventory | |||
| (60% complete as to conversion) |
8,000 |
units | |
| Beginning Work in Process Inventory Costs: | |||
| Material |
$32,000 |
||
| Conversion |
74,000 |
||
| Current Period Costs: | |||
| Material |
$ 298,243 |
||
| Conversion |
89,979 |
||
Refer to McIlhenny Company. What is the cost of units completed
using the weighted average?
| a. |
$366,275 |
|
| b. |
$343,980 |
|
| c. |
$467,260 |
|
| d. |
$509,600 |
Solutions
Expert Solution
Correct answer----------(c) $467,260
Working
| Reconciliation of Units | ||
| A | Opening WIP | 10,000 |
| B | Introduced | 120,000 |
| C=A+B | TOTAL | 130,000 |
| D | Transferred | 122,000 |
| E=C-D | Closing WIP | 8,000 |
.
| Statement of Equivalent Units(Weighted average) | |||||||
| Material | Conversion cost | ||||||
| Units | Complete % | Equivalent units | Complete % | Equivalent units | |||
| Transferred | 122,000 | 100% | 122,000.0 | 100% | 122,000 | ||
| Closing WIP | 8,000 | 100% | 8,000.0 | 60% | 4,800 | ||
| Total | 130,000 | Total | 130,000.0 | Total | 126,800 | ||
.
| Cost per Equivalent Units (Weighted average) | ||||
| COST | Material | Conversion cost | TOTAL | |
| Beginning WIP Inventory Cost | $ 32,000 | $ 74,000 | $ 106,000 | |
| Cost incurred during period | $ 298,243 | $ 89,979 | $ 388,222 | |
| Total Cost to be accounted for | $ 330,243 | $ 163,979 | $ 494,222 | |
| Total Equivalent Units | 130,000 | 126,800 | ||
| Cost per Equivalent Units | $ 2.54 | $ 1.29 | ||
.
| Statement of cost (Weighted average) | |||||
| Cost | Equivalent Cost/unit | Ending WIP | Transferred | ||
| Units | Cost Allocated | Units | Cost Allocated | ||
| Material | $ 2.54 | 8,000 | $ 20,320.00 | 122,000 | $ 309,880 |
| Conversion cost | $ 1.29 | 4,800 | $ 6,192.00 | 122,000 | $ 157,380 |
| TOTAL | $ 493,772 | TOTAL | $ 26,512 | TOTAL | $ 467,260 |
ekkarill92 answered 1 year agoRelated Solutions
Snyder Industries adds materials costs at the start of the production process. For the month that...
Snyder Industries adds materials costs at the start of the
production process. For the month that just ended, the firm had
104,800 units of beginning work in process at 80% completion, as
well as 94,200 units of ending work in process at 70% completion.
If Snyder had 410,500 equivalent units of production for materials
for the month, then it must have completed and transferred out
_______ units over the course of the month.
Select one:
a. 316,300
b. 211,500
c....
Magic Company adds materials at the beginning of the process in Department A. The following information...
Magic Company adds materials at the beginning of the process in
Department A. The following information on physical units for
Department A for the month of August is available:
Work in process, August 1 (64% complete with respect to
conversion) 17,400
Started in August 120,000
Completed 120,000
Work in process, August 31 (75% complete with respect to
conversion) 17,400
Required:
a. Compute the equivalent units for materials costs and for
conversion costs using the weighted-average method.
b. Compute the equivalent...
Magic Company adds materials at the beginning of the process in Department A. The following information...
Magic Company adds materials at the beginning of the process in
Department A. The following information on physical units for
Department A for the month of August is available:
Work in process, August 1 (58% complete with respect to
conversion)
16,400
Started in August
118,800
Completed
118,800
Work in process, August 31 (71% complete with respect to
conversion)
16,400
Required:
a. Compute the equivalent units for materials
costs and for conversion costs using the weighted-average
method.
b. Compute the equivalent...
Johnson Company adds materials, 50% at the start of the process and 50% at the end...
Johnson Company adds materials, 50% at the start of the process
and 50% at the end of the process in Department A. Conversion costs
were 70% complete as to the 8,000 units in process on January 1 and
50% as to the 6,000 units in process on January 31. During the
month of January, 12,000 units were transferred to Department B. An
analysis of the costs relating to Work in Process is as
follows:
Work in process, 1/1
Materials,...
Direct material purchases and budgeted payments Campbell Manufacturing intends to start business on January 1. Production...
Direct material purchases and budgeted
payments
Campbell Manufacturing intends to start business on January 1.
Production plans for the first four months of operations are as
follows:
January
8,000
units
February
20,000
units
March
28,000
units
April
28,000
units
Each unit requires two pounds of material. The firm would like
to end each month with enough raw material to cover 25 percent of
the following month’s production needs. Raw material costs $7 per
pound. Management pays for 40 percent of...
Direct material purchases and budgeted payments Campbell Manufacturing intends to start business on January 1. Production...
Direct material purchases and budgeted
payments
Campbell Manufacturing intends to start business on January 1.
Production plans for the first four months of operations are as
follows:
January
8,000
units
February
20,000
units
March
28,000
units
April
28,000
units
Each unit requires two pounds of material. The firm would like
to end each month with enough raw material to cover 25 percent of
the following month’s production needs. Raw material costs $7 per
pound. Management pays for 40 percent of...
The Company uses a single department production process. Materials are added at the start of the production...
The Company uses a single department production
process. Materials are added at the start of the
production process and labor and overhead are added as indicated.
The Company records have the following information for the month of
November:
UNITS:
Beginning WIP: 2/3 complete for labor; 1/3 complete for
overhead 12,000
units
Units started in
process 40,000
units
Units
completed 44,000
units
Ending WIP: 50% complete for labor; 25% complete for
overhead 8,000
units
PRODUCTION COSTS:
Work in Process, Beginning of the
Month:
Materials $
32,000
Labor 20,000
Overhead 9,400 61,400
Current...
Question 1 The following information is for Obaapa Ltd's July production: Standards: Material: 3.0 feet per unit...
Question 1
The following information is for Obaapa Ltd's July
production: Standards: Material: 3.0 feet per unit @
GH¢4.20 per foot, Labour: 2.5 hours per unit @ GH¢7.50 per hour.
Actual: Production: 2,750 units produced during the month,
Material: 8,700 feet used; 9,000 feet purchased @ GH¢4.50 per foot,
Labor: 7,000 direct labour hours @ GH¢7.90 per
hour. Determine the total material cost and
total labour cost variance, separating them into their
corresponding price and quantity variances. show all
workings clearly
Question...
Crystal Company adds materials at the beginning of the process in its Cutting Department. Additional information...
Crystal Company adds
materials at the beginning of the process in its Cutting
Department. Additional information relating to Crystal is as
follows:
%
Complete Units
Beginning work-in-process
60%
10,000
Completed and transferred
100%
14,000
Ending work-in-process
40%
4,000
Costs
Materials Conversion
Beginning work-in-process
$ 8,000
$15,000
Cost added this period
10,000
16,200
Using the weighted-average method, what was the total cost per
equivalent unit
A.
$2.00
B.
$3.00
C.
$3.25
D.
$3.50
WA EUP In manufacturing its products, Trevano Corp. adds all direct material at the beginning of...
WA EUP
In manufacturing its products, Trevano Corp. adds all direct
material at the beginning of the production process. The company’s
direct labor and overhead are considered to be continuously at the
same degree of completion. September production information is as
follows:
Beginning WIP Inventory
10,000
pounds
Started during September
25,000
pounds
Completed during September
32,000
pounds
As of September 1, the beginning WIP Inventory was 30 percent
complete as to labor and overhead. On September 30, the ending WIP...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Create a Hangman game using C++ by QT creator. please separate each code that will insert...
- How many grams of NaCl are contained in 350. mL of a 0.152 M solution of...
- Why does diversity matter for business? Provide 2-3 benefits and 2-3 challenges
- Dr C #1 An object with mass = 5 kg is oscillating on the end of...
- Calculate the value of a bond that matures in 13 years and has a $1,000 par...
- The documentary Gender Revolution implies that gender today—gender identities and categories—are vastly different today than they...
- 12. What is the payment in month 13 on a CAM loan for $250,000 with a...
ADVERTISEMENT