Question
In: Accounting
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments.
The second department (Polishing) had the following physical flow schedule for December:
| Units to account for: | ||
| Units, beginning work in process | 4,000 | (40% complete) |
| Units started | ? | |
| Total units to account for | ? | |
| Units accounted for: | ||
| Units, ending work in process | 8,000 | (50% complete) |
| Units completed | ? | |
| Units accounted for | ? |
Costs in beginning work in process for the Polishing Department were direct materials, $5,000; conversion costs, $6,000; and transferred in, $9,000. Costs added during the month: direct materials, $32,000; conversion costs, $48,000; and transferred in, $39,000.
Required:
1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
| Direct Materials | Conversion Costs | Transferred In | |
| Ending WIP: | |||
|
x % |
|||
|
x % |
|||
2. Compute the unit cost for the month. If
required, round your answer to the nearest cent.
$ per equivalent unit
Solutions
Expert Solution
The second department (Polishing) had the following physical flow schedule for December:
| Units to account for: | ||
| Units, beginning work in process | 4,000 | (40% complete) |
| Units started | 24000 | |
| Total units to account for | 28000 | |
| Units accounted for: | ||
| Units, ending work in process | 8,000 | (50% complete) |
| Units completed | 20000 | |
| Units accounted for | 28000 |
. Assuming the use of the weighted average method, prepare a schedule of equivalent units. Enter percentages as whole numbers.
| Direct Materials | Conversion Costs | Transferred In | |
| Unit Transferred out | 20000 | 20000 | 20000 |
| Ending WIP: | |||
|
x 100% |
8000 | 8000 | |
|
x 50% |
4000 | ||
| Equivalent unit | 28000 | 24000 | 28000 |
2. Compute the unit cost for the month. If required, round your answer to the nearest cent.
Transferred in Cost per equivalent unit = (9000+39000)/28000 = 1.71
Direct material cost per equivalent unit = (5000+32000)/28000 = 1.32
Conversion Cost per equivalent unit = (6000+48000)/24000 =
2.25
$5.28 per equivalent unit
ekkarill92 answered 1 year agoRelated Solutions
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple
Departments
Fordman Company has a product that passes through two processes:
Grinding and Polishing. During December, the Grinding Department
transferred 20,000 units to the Polishing Department. The cost of
the units transferred into the second department was $40,000.
Direct materials are added uniformly in the second process. Units
are measured the same way in both departments.
The second department (Polishing) had the following physical
flow schedule for December:
Units to account for:...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple Departments Fordman Company has a product that passes...
Weighted Average Method, Equivalent Units, Unit Cost, Multiple
Departments
Fordman Company has a product that passes through two processes:
Grinding and Polishing. During December, the Grinding Department
transferred 20,000 units to the Polishing Department. The cost of
the units transferred into the second department was $40,000.
Direct materials are added uniformly in the second process. Units
are measured the same way in both departments.
The second department (Polishing) had the following physical
flow schedule for December:
Units to account for:...
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes...
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Heap Company manufactures a product that passes through two
processes: Fabrication and Assembly. The following information was
obtained for the Fabrication Department for September:
All materials are added at the beginning of the process.
Beginning work in process had 70,400 units, 40 percent complete
with respect to conversion costs.
Ending work in process had 12,200 units, 25 percent complete with
respect to conversion costs.
Started in process, 96,600 units.
Required:
1....
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Weighted Average Method, FIFO Method, Physical Flow, Equivalent
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Heap Company manufactures a product that passes through two
processes: Fabrication and Assembly. The following information was
obtained for the Fabrication Department for September:
All materials are added at the beginning of the process.
Beginning work in process had 71,200 units, 40 percent complete
with respect to conversion costs.
Ending work in process had 13,400 units, 20 percent complete
with respect to conversion costs.
Started in process, 101,200 units.
Required:
1....
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes...
Weighted Average Method, FIFO Method, Physical Flow, Equivalent
Units
Heap Company manufactures a product that passes through two
processes: Fabrication and Assembly. The following information was
obtained for the Fabrication Department for September:
All materials are added at the beginning of the process.
Beginning work in process had 74,900 units, 40 percent complete
with respect to conversion costs.
Ending work in process had 19,600 units, 35 percent complete
with respect to conversion costs.
Started in process, 109,100 units.
Required:
1....
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes...
Weighted Average Method, FIFO Method, Physical Flow, Equivalent
Units
Heap Company manufactures a product that passes through two
processes: Fabrication and Assembly. The following information was
obtained for the Fabrication Department for September:
All materials are added at the beginning of the process.
Beginning work in process had 73,600 units, 40 percent complete
with respect to conversion costs.
Ending work in process had 15,700 units, 35 percent complete
with respect to conversion costs.
Started in process, 90,600 units.
Required:
1....
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Heap Company manufactures a product that passes...
Weighted Average Method, FIFO Method, Physical Flow, Equivalent
Units
Heap Company manufactures a product that passes through two
processes: Fabrication and Assembly. The following information was
obtained for the Fabrication Department for September:
All materials are added at the beginning of the process.
Beginning work in process had 90,300 units, 20 percent complete
with respect to conversion costs.
Ending work in process had 12,900 units, 20 percent complete
with respect to conversion costs.
Started in process, 98,200 units.
Required:
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Morrison Company had the equivalent units schedule and cost
information for its Sewing Department for the month of December, as
shown below.
Direct
Materials
Conversion
Costs
Units completed
44,000
44,000
Add: Units in ending work in
process ×
Percentage
complete:
19,000 × 100% direct
materials
19,000
—
19,000 × 45% conversion
materials
—
8,550
Eqivalent units of output
63,000
52,550
Costs:
Work in process,
December 1:
Direct
materials...
Cost Information and the Weighted Average Method Morrison Company had the equivalent units schedule and cost...
Cost Information and the Weighted Average Method
Morrison Company had the equivalent units schedule and cost
information for its Sewing Department for the month of December, as
shown below.
Direct Materials
Conversion Costs
Units completed
48,000
48,000
Add: Units in ending work in process ×
Percentage complete:
17,000 × 100% direct
materials
17,000
—
17,000 × 40%
conversion materials
—
6,800
Eqivalent units of output
65,000
54,800
Costs:
Work in process,
December 1:
Direct
materials...
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Units of production data for the two departments of Atlantic
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Drawing Department
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Work in process, July 1
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650 units, 30% completed
Completed and transferred to next processing department during
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33,600 units
32,750 units
Work in process, July 31
1,600 units, 70% completed
1,100 units, 20% completed
Each department uses the average cost...
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