Question
In: Accounting
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process....
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process. The normal spoilage rate is calculated as 10% of good units completed.
The cost of the beginning work-in-process in the month of May is $3,000,000, including $1,600,000 of input of materials, 100,000 units, and $1,400,000 for conversion costs. The beginning work-in-process is 70% complete.
During May, the input includes $7,400,000 for materials, 800,000 units started and $4,190,000 for conversion costs. There were 700,000 good units finished. In addition, the ending work-in-process in May is 100,000 units with 60% complete. All spoilage occurred when all processing was complete, at the final inspection.
Required:
1.
Using
each of the
weighted-average
and FIFO methods,
calculate
(for May):
(a) The dollar value of abnormal spoilage.
(b) The cost of the good units finished.
(c) The cost of ending work-in-process inventory
2.
Using only the FIFO numbers from 1. above, prepare the journal
entries to record the cost of materials, conversion costs, good
units transferred out of
the process and abnormal spoilage for the month of
May.
Solutions
Expert Solution
1.
2.
if still any difficulty, please
comment. Thank you.
ekkarill92 answered 2 years agoRelated Solutions
Atlantic manufacturing company uses process costing. All materials are added at the beginning of the process....
Atlantic manufacturing company uses process costing. All
materials are added at the beginning of the process. The company
uses weighted average method in measuring unit costs. There are
100,000 units in the beginning work-in-process in the month of May
(The company started its production in late April and did not
finish producing any unit). The conversion work is 70%
complete.
The costs of beginning WIP are $1,250,000, including
$100,000 of input of materials ($1 per EU), and $140,000 for labor...
Atlantic Manufacturing Company uses process costing. All materials are added at the beginning of the process....
Atlantic Manufacturing Company uses process costing. All
materials are added at the beginning of the process. The normal
spoilage rate is calculated as 10% of good units completed. The
cost of the beginning work-in-process in the month of May is
$3,000,000, including $1,600,000 of input of materials, 100,000
units, and $1,400,000 for conversion costs. The beginning
work-in-process is 70% complete. During May, the input includes
$7,400,000 for materials, 800,000 units started and $4,190,000 for
conversion costs. There were 700,000 good...
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Group Case 2: Costing and profitability
management
Atlantic manufacturing company uses process costing. All
materials are added at the beginning of the process. The company
uses weighted average method in measuring unit costs. There are
100,000 units in the beginning work-in-process in the month of May
(The company started its production in late April and did not
finish producing any unit). The conversion work is 70%
complete.
The costs of beginning WIP are $1,250,000, including $100,000 of
input of materials...
Williams uses a weighted-average process-costing system. All materials are added at the beginning of the process;...
Williams uses a weighted-average process-costing system. All
materials are added at the beginning of the process; conversion
costs are incurred evenly throughout production. The company
finsihed 150,000 units during the period and has 80,000 units in
progress at year-end, the latter at the 40% stage of completion.
Total material costs amounted to $1,350,000; coversion costs were
$1,600,000.
The cost of the ending work-in process is?
Williams uses a weighted-average process-costing system. All materials are added at the beginning of the process;...
Williams uses a weighted-average process-costing system. All
materials are added at the beginning of the process; conversion
costs are incurred evently throughout poduction. The company
finished 150,000 units during the period and has 80,000 units in
progress at year, the latter at the 40% stage of completion. Total
materia costs amounted to $1,350,000; conversion costs were
$1,600,000.
The cost of the ending work-in-process is:
The Company uses the FIFO method of process costing. All direct materials are added at the...
The Company uses the FIFO method of process costing. All direct
materials are added at the beginning of processing, and overhead is
charged to units on the basis of direct labor hours. At the
beginning of March, the company had 2,000 units in Work in Process
that were 80% complete as to processing. These 2,000 units had been
charged $9,000 for direct materials and $8,400 for conversion cost
during February. During March, the company started 30,000 units and
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Materials are added at the beginning of the production process at Campo Company. Campo uses a...
Materials are added at the beginning of the production process at
Campo Company. Campo uses a FIFO process costing system. The
following information on the physical flow of units is available
for the month of November:
Beginning work in process (38% complete)
85,000
Started in
November
1,024,000
Completed in
November and transferred out
951,000
Ending work in
process (68% complete)
158,000
Required:
Compute the equivalent units for the conversion cost
calculation.
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A department uses the FIFO method of process costing. All direct
materials are added at the beginning of the process. This
department has the following data for this month.
181 units in beginning WIP (54% complete with respect to
conversion costs).
8,874 units started
103 units in ending WIP (27% complete with respect to
conversion costs).
$1,898 beginning WIP direct materials costs
$1,923 beginning WIP conversion costs
$99,412 current month direct materials costs
$98,211 current month conversion costs
What is...
A department uses the FIFO method of process costing. All direct materials are added at the...
A department uses the FIFO method of process costing. All direct
materials are added at the beginning of the process. This
department has the following data for this month.
114 units in beginning WIP (31% complete with respect to
conversion costs).
8,068 units started
198 units in ending WIP (27% complete with respect to
conversion costs).
$1,781 beginning WIP direct materials costs
$2,377 beginning WIP conversion costs
$100,870 current month direct materials costs
$104,747 current month conversion costs
What is...
A department uses the FIFO method of process costing. All direct materials are added at the...
A department uses the FIFO method of process costing. All direct
materials are added at the beginning of the process. This
department has the following data for this month.
223 units in beginning WIP (41% complete with respect to
conversion costs).
9,791 units started
139 units in ending WIP (32% complete with respect to
conversion costs).
$1,140 beginning WIP direct materials costs
$1,124 beginning WIP conversion costs
$92,288 current month direct materials costs
$85,721 current month conversion costs
What is...
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