Question
In: Accounting
B) All Shall Pass Ltd produces potable water through two processing departments: Filtration and Bottling. Cost...
B) All Shall Pass Ltd produces potable water through two processing departments: Filtration and Bottling. Cost and inventory data for June for the Filtration Department follow.
Work in process, June 1 (materials, 70% completed; conversion, 35% completed) 510,000 litres
Work in process, June 30 (materials, 65% completed; conversion, 30% completed) 100,000 litres
Unfiltered water introduced into production during June: 1,120,000 litres
Cost data relating to water production in April are provided below:
Material cost in work in process inventory, June 1 GHS360,000
Conversion cost in work in process inventory, June 1 GHS120,000
Material cost added during June GHS750,000
Conversion cost added during June GHS420,000
Required:
(a) Assuming the company uses the weighted average method of accounting for units and costs, determine the equivalent units for June for the Filtration Department. [3 marks]
(b) Compute the cost per equivalent unit for June for the Filtration Department. [3 marks]
(c) Determine the total cost of ending work in process inventory and the total cost of units
transferred to the Bottling Department. [3 marks]
(d) Prepare a cost reconciliation report for the month. [3 marks]
(e) Using the information given above and the cost per equivalent unit you have computed,
copy and complete the table below. [4 marks]
Work-in-Process Account
| Cost Item | Amount (GHS) | Cost Item | Amount (GHS) |
|
WIP inventory b/f Materials Conversion |
480,000 | Units transferred WIP inventory c/f | |
| WIP inventory b/f |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments....
Ramsey Company produces speakers (Model A and Model B). Both
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production is much more labor-intensive than that of Model B. Model
B is also the more popular of the two speakers. The following data
has been gathered for the two products:
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Units produced per year
10,000
100,000
Prime costs
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$1,530,000
Direct labor hours
143,000
310,000
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196,000
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Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments....
Ramsey Company produces speakers (Model A and Model B). Both
products pass through two producing departments. Model A's
production is much more labor-intensive than that of Model B. Model
B is also the more popular of the two speakers. The following data
has been gathered for the two products:
Product
Data
Model A
Model B
Units produced
per year
10,000
100,000
Prime costs
$150,000
$1,500,000
Direct labor
hours
140,000
300,000
Machine
hours
20,000
200,000
Production
runs
40
60
Inspection
hours...
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments....
Ramsey Company produces speakers (Model A and Model B). Both
products pass through two producing departments. Model A's
production is much more labor-intensive than that of Model B. Model
B is also the more popular of the two speakers. The following data
has been gathered for the two products:
Product Data
Model A
Model B
Units produced per year
10,000
100,000
Prime costs
$148,000
$1,480,000
Direct labor hours
135,000
300,000
Machine hours
21,000
197,000
Production runs
40
50
Inspection hours...
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments....
Ramsey Company produces speakers (Model A and Model B). Both
products pass through two producing departments. Model A's
production is much more labor-intensive than that of Model B. Model
B is also the more popular of the two speakers. The following data
has been gathered for the two products: Product Data Model A Model
B Units produced per year 10,000 100,000 Prime costs $150,000
$1,500,000 Direct labor hours 140,000 300,000 Machine hours 20,000
200,000 Production runs 40 60 Inspection hours...
Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments....
Ramsey Company produces speakers (Model A and Model B). Both
products pass through two producing departments. Model A's
production is much more labor-intensive than that of Model B. Model
B is also the more popular of the two speakers. The following data
has been gathered for the two products:
Product Data
Model A
Model B
Units produced per year
10,000
100,000
Prime costs
$153,000
$1,530,000
Direct labor hours
138,000
320,000
Machine hours
18,000
205,000
Production runs
40
70
Inspection hours...
Fast Co. produces its product through two processing departments. Direct materials are added at the start...
Fast Co. produces its product through two processing
departments. Direct materials are added at the start of production
in the Cutting department, and conversion costs are added evenly
throughout each process. The company uses monthly reporting periods
for its weighted-average process costing system. The Work in
Process Inventory-Cutting 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 Cutting department incurred the following
costs:...
Fast Co. produces its product through two processing departments. Direct materials are added at the start...
Fast Co. produces its product through two processing
departments. Direct materials are added at the start of production
in the Cutting department, and conversion costs are added evenly
throughout each process. The company uses monthly reporting periods
for its weighted-average process costing system. The Work in
Process Inventory-Cutting account has a balance of $99,300 as of
October 1, which consists of $21,600 of direct materials and
$77,700 of conversion costs.
During the month, the Cutting department incurred the following
costs:...
Fast Co. produces its product through two processing departments. Direct materials are added at the start...
Fast Co. produces its product through two processing
departments. Direct materials are added at the start of production
in the Cutting department, and conversion costs are added evenly
throughout each process. The company uses monthly reporting periods
for its weighted-average process costing system. The Work in
Process Inventory-Cutting account has a balance of $91,300 as of
October 1, which consists of $19,200 of direct materials and
$72,100 of conversion costs.
During the month, the Cutting department incurred the following
costs:...
Randy Company produces candy sticks (hooked and straight). Both products pass through two producing departments. The...
Randy Company produces candy sticks (hooked and straight). Both
products pass through two producing departments. The hooked stick's
production is much more labor-intensive than the straight stick.
The straight stick is also more popular. The following data have
been gathered for the two products:
Product Data
Hooked Straight
Units produced per year 200,000 2,000,000
Direct labor hours 10,000 40,000
Machine hours 10,000 70,000
Total overhead costs equal $400,000. Randy applies overhead
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The Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department had 2,950...
The Mountain Springs Water Company has two departments,
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beginning work in process inventory (30% complete). During the
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6,400 liters (70% completed). All inventories are costed by the
first-in, first-out method. What is the total equivalent units for
direct materials (using the FIFO method) if materials were added at
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equivalent units
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