Question
In: Accounting
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
Inventory was 80 percent complete as to conversion.
a. Determine the total number of pounds to account for
if Trevano uses the weighted average process costing method.
Answer
pounds
b. Determine the equivalent units of production for direct
material. Answer
pounds
c. Determine the equivalent units of production for direct
labor and overhead. Answer
pounds
Solutions
Expert Solution
| Final answer: | ||||
| a) | total number of pounds to account for if Trevano uses the weighted average process costing method. | 35000 | ||
| b) | equivalent units of production for direct material. | 35,000 | ||
| c) | equivalent units of production for direct labor and overhead | 34,400 | ||
| Woring Notes: | ||||
| a) | Actual Units | |||
| Caluclation of Physical UNITS: | ||||
| Units in begining inventory | 10000 | |||
| Units started during the period | 25000 | |||
| Units to be accounted for | 35000 | |||
| Actual Units | ||||
| Units Completed and Transferred | 32000 | |||
| Units in ending inventory | 3000 | |||
| Total accounted for | 35000 | |||
| b) | Equivalent Units of Production (EUP)—Weighted Average Method | |||
| Units | % Materials | EUP—Materials | ||
| Goods completed | 32,000 | 100% | 32,000 | |
| Ending work in process | 3,000 | 100% | 3,000 | |
| Total EUP | 35,000 | 35,000 | ||
| c) | Units | % Conversion | EUP—Conversion | |
| Goods completed | 32,000 | 100% | 32,000 | |
| Ending work in process | 3,000 | 80% | 2,400 | |
| Total EUP | 35,000 | 34,400 | ||
ekkarill92 answered 1 year agoRelated Solutions
FIFO EUP In manufacturing its products, Trevano Corp. adds all direct material at the beginning of...
FIFO 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. The company uses the FIFO method of
process costing. 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...
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process....
Sandia Corporation manufactures metal toolboxes. It adds all
materials at the beginning of the manufacturing process. The
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Units
Costs
Beginning work in process (27% complete)
33,000
Direct materials
$
34,000
Conversion cost
94,000
Total cost of beginning work in process
$
128,000
Number of units started
68,000
Number of units completed and transferred to finished
goods
?
Ending work in process (57% complete)
84,000
Current period costs
Direct materials
$
87,000
Conversion cost
161,000...
Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process....
Sandia Corporation manufactures metal toolboxes. It adds all
materials at the beginning of the manufacturing process. The
company has provided the following information:
Units
Costs
Beginning work in process (26% complete)
39,000
Direct materials
$
34,000
Conversion cost
89,000
Total cost of beginning work in process
$
123,000
Number of units started
83,000
Number of units completed and transferred to finished
goods
?
Ending work in process (58% complete)
74,000
Current period costs
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$
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Conversion cost
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i. Cheaper manufacturing company developed the following
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Beginning work in process inventory
$6000
Direct material used 360,000
Actual overhead 420,000
Overhead applied 405,000
Total manufacturing cost 960,000
Ending work in process 45,000
How much are the direct labour costs
for the period?
a. $175,000
b. $195,000
c. $200,000
d. $180,000
ii. What is the production cost report used for?
a. It is an external report provided to shareholders.
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Humphrey Manufacturing produces automobile parts and batteries. All direct materials are added at the beginning of...
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All direct materials are added at the beginning of production and
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Units:
Work in process, March 31: 6,000 units (40% complete)
Units started in April 42,000
Units completed during April 40,000
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Palcic Manufacturing Company uses a process cost system. The Molding Department adds materials at the beginning...
Palcic Manufacturing Company uses a process cost system. The
Molding Department adds materials at the beginning of the process
and conversion costs are incurred uniformly throughout the process.
Work in process on May 1 was 75% complete and work in process on
May 31 was 40% complete.
Instructions
Part A: Complete the Production Cost Report for
the Molding Department for the month of May using the above
information and the information below.
PALCIC MANUFACTURING COMPANY
Molding Department
Production Cost Report...
Determine whether each of the following costs should be classified as: Direct material Direct Labor Manufacturing...
Determine whether each of the following costs should be
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Direct material
Direct Labor
Manufacturing Overhead
Period Cost
Oils, glues, resins
Answer 1
The factory janitor's salary
Answer 2
Frames and tires used in manufacturing bicycles
Answer 3
Wages paid to the workers assembling the bicycles for sale
Answer 4
Depreciation of office computer system
Answer 5
Wood purchased to manufacture tables made of wood.
Answer 6
Depreciation on factory equipment
Answer 7
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%
Complete Units
Beginning work-in-process
60%
10,000
Completed and transferred
100%
14,000
Ending work-in-process
40%
4,000
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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
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Selling and administrative expenses are typically considered
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Now, what happens if a period cost is incorrectly
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Cost per Unit of Input
Required Amount per Unit of Product
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Material B
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12 ounces
Material C
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15 minutes
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