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, $4,000; conversion costs, $6,000; and transferred in, $8,000. Costs added during the month: direct materials, $33,000; conversion costs, $48,000; and transferred in, $40,000.

Compute the unit cost for the month. If required, round your answer to the nearest cent.

Solutions

Expert Solution

Solution:

Units to account for:
  Units, beginning work in process 4,000 (40% complete)
  Units started 20000
  Total units to account for 24,000
Units accounted for:
  Units, ending work in process 8,000 (50% complete)
  Units completed 16000
  Units accounted for 24,000
Computation of Equivalent unit of Production - Polishing Department
Particulars Physical Units Transferred In cost Material Conversion
Unit completed & Transferred out 16000 16000 16000 16000
Closing WIP: 8000
Transferred In (100%) 8000
Material (50%) 4000
Conversion (50%) 4000
Equivalent units of production 24000 24000
Computation of Cost per equivalent unit of Production - Polishing Department
Particulars Transferred In cost Material Conversion
Opening WIP $8,000.00 $4,000.00 $6,000.00
Cost Added during month $40,000.00 $33,000.00 $48,000.00
Total cost to be accounted for $48,000.00 $37,000.00 $54,000.00
Equivalent units of production 24000 20000 20000
Cost per Equivalent unit $2.00 $1.85 $2.70
0000 20000

Unit cost for the month = $2 + $1.85 + $2.70 = $6.55 per unit

ekkarill92 answered 2 years ago
Next > < Previous

Related 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...
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 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....
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 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: 1....
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 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...
Equivalent Units of Production: Average Cost Method Units of production data for the two departments of...
Equivalent Units of Production: Average Cost Method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department Work in process, July 1 2,100 units, 65% completed 650 units, 30% completed Completed and transferred to next processing department during July 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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT