Question

1. . Super Cy Soccer Manufacturing produces red and gold soccer balls in two stages. The first stage is Molding and the second stage is Painting. This period, Painting began with 10,000 balls which were 60% complete as to both materials and conversion costs. In the Painting stage, all conversion costs are added uniformly throughout the process and direct materials were added when balls were 50 percent done. The beginning inventory of 10,000 units had associated with it, $10,200 of transferred in costs, $3,000 of direct materials and $2,625 of conversion costs. During the period, an additional 50,000 balls were started with a transferred in costs of $45,000. $15,200 of direct materials was added during the period as well as $17,500 of conversion costs. 52,000 balls were finished in Painting this period. Of those 52,000 balls, 2,000 were spoiled. Normal spoilage is considered 3 percent of good units. Ending WIP was 30% complete.

Find the following using both the weighted average and FIFO methods:

1. Cost per equivalent unit for transferred-in costs

2. Cost per equivalent unit for direct materials

3. Cost per equivalent unit for conversion costs

4. The value of good units completed and transferred out

5. The value of abnormal spoilage

6. The value of ending work in process inventory

Answer 1

Production report- Painting (on weighted average method)
	Physical units	Transfer-in	Direct Mat.	Conver. Costs	Total
WIP Op	10000	10000	10000	10000
Units Started & Compl.	40000	40000	40000	40000
Tranf. To FG	50000
Normal Loss	1500					(52000-50000)*3%
Abnormal Loss	500	500	500	500		(2000-1500)
WIP Cl (b)	8000	8000		2400
Equivalent units		58500	50500	52900
Total costs:
WIP Op		10200	3000	2625
Incurred during period		45000	15200	17500
Total costs to account for		55200	18200	20125	93525
Cost per Eq. unit (a)		0.943589744	0.36039604	0.380434783
Cost of Transferred out		47179	18020	19022	84221	(50000*a)
Cost of Abnormal loss		472	180	190	842	(500*a)
Cost of WIP Cl		7549		913	8462	(b*a)
Total cost accounted for					93525
Production report- Painting (on FIFO method)
	Physical units	Transfer-in	Direct Mat.	Conver. Costs	Total
WIP Op (b)	10000			4000	15825
Units Started & Compl.	40000	40000	40000	40000
Tranf. To FG	50000
Normal Loss	1500					(52000-2000)*3%
Abnormal Loss	500	500	500	500		(2000-1500)
WIP Cl (c)	8000	8000		2400
Equivalent units		48500	40500	46900
Incurred during period		45000	15200	17500	77700
Total cost to account for					93525
Cost per Eq. unit (a)		0.927835052	0.375308642	0.373134328
Total cost of WIP Op:
Opening costs		10200	3000	2625	15825
Add: to finish WIP Op				1493	1493	(b*a)
Total cost of WIP Op:		10200	3000	4118	17318
Cost of Started & Compl.		37113	15012	14925	67051	(40000*a)
Cost of Transferred out		46392	18765	18657	84369
Cost of Abnormal loss		464	188	187	838	(500*a)
Cost of WIP Cl		7423		896	8318	(c*a)
Total cost accounted for					93525