Question

In: Statistics and Probability

Transferred-in costs

Transferred-in costs, FIFO method. Refer to the information in Exercise 17-27. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-27 under the FIFO method are that total transferred-in costs of beginning work in process on June 1 are $60,000 (instead of $75,000) and total transferred-in costs added during June are $130,800 (instead of $142,500). Do Exercise 17-27 using the FIFO method. Note that you first need to calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.

Solutions

Expert Solution

Transferred-in costs, FIFO method.

 

Solution Exhibit 17-28A calculates the equivalent units of work done in the current period (for transferred-in costs, direct-materials, and conversion costs) to complete beginning work-in-process inventory, to start and complete new units, and to produce ending work in process. Solution Exhibit 17-28B summarizes total costs to account for, calculates the cost per equivalent unit of work done in the current period for transferred-in costs, direct materials, and conversion costs, and assigns these costs to units completed and transferred out and to units in ending work-in-process inventory.

SOLUTION EXHIBIT 17-28A

Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units 

FIFO Method of Process Costing;

Finishing Department of Asaya Clothing for June 2009.

 

SOLUTION EXHIBIT 17-28B

Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed and to Units in Ending Work in Process;

FIFO Method of Process Costing,

Finishing Department of Asaya Clothing for June 2009.


Transferred-in costs, FIFO method.

 

Solution Exhibit 17-28A calculates the equivalent units of work done in the current period (for transferred-in costs, direct-materials, and conversion costs) to complete beginning work-in-process inventory, to start and complete new units, and to produce ending work in process. Solution Exhibit 17-28B summarizes total costs to account for, calculates the cost per equivalent unit of work done in the current period for transferred-in costs, direct materials, and conversion costs, and assigns these costs to units completed and transferred out and to units in ending work-in-process inventory.

SOLUTION EXHIBIT 17-28A

Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units 

FIFO Method of Process Costing;

Finishing Department of Asaya Clothing for June 2009.

 

SOLUTION EXHIBIT 17-28B

Steps 3, 4, and 5: Summarize Total Costs to Account For, Compute Cost per Equivalent Unit, and Assign Total Costs to Units Completed and to Units in Ending Work in Process;

FIFO Method of Process Costing,

Finishing Department of Asaya Clothing for June 2009.

Related Solutions

Transferred-in costs, weighted-average method.
Transferred-in costs, weighted-average method. Publish, Inc. has two departments: Printing and Binding. Each department has one direct-cost category (direct materials) and one indirect-cost category (conversion costs). This problem focuses on the Binding Department Books that have undergone the printing process are immediately transferred to the Binding Department Direct material is added when the binding process is 80% complete. Conversion costs are added evenly during binding operations. When those operations are done, the books are immediately transferred to Finished Goods. Publish...
what are transferred in costs? when do they occur?
what are transferred in costs? when do they occur?
-Transfer prices are ________. A) revenues of the segment producing the transferred product B) costs of...
-Transfer prices are ________. A) revenues of the segment producing the transferred product B) costs of the segment acquiring the transferred product C) costs of the segment producing the transferred product D) revenues of the segment producing the transferred product and costs of the segment acquiring the transferred product(correct)- found in horngren answers. -In a process costing system, which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process? A)...
Calculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method Godfrey Manufacturing, Inc., operates a plant that...
Calculate Equivalent Units, Unit Costs, and Transferred Costs—FIFO Method Godfrey Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce. The sauce is produced in two processes, blending and bottling. In the Blending Department, all ma- terials are added at the start of the process, and labor and overhead are incurred evenly throughout the process. Godfrey uses the FIFO method. The following data from the Work in Process—Blending Department account for January 2016 is missing a...
Calculate Equivalent Units, Unit Costs, and Transferred Costs—Weighted Average Method Kipling Manufacturing, Inc., operates a plant...
Calculate Equivalent Units, Unit Costs, and Transferred Costs—Weighted Average Method Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the weighted average method. The Work in Process—Blending Department account for January 2016 follows: Work in Process-Blending Department January 1...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Oak Ridge Steel Company are $0.80 and $0.45, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, July 1 0 4,900 Started and completed during July 61,000 61,000 Transferred out of Rolling (completed) 61,000 65,900 Inventory in process, July 31 4,000 2,400 Total units to...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $1.80 and $2.70, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct MaterialsConversion Inventory in process, October 10 2,900 Started and completed during October48,000 48,000 Transferred out of Rolling (completed)48,000 50,900 Inventory in process, October 316,000 3,600 Total units to be assigned costs54,000 54,500 The beginning...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Oak Ridge Steel Company are $2.15 and $1.60, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, July 1 0 1,800 Started and completed during July 46,000 46,000 Transferred out of Rolling (completed) 46,000 47,800 Inventory in process, July 31 4,000 2,000 Total units to...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $1.90 and $1.40, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, October 1 0 1,900 Started and completed during October 32,000 32,000 Transferred out of Rolling (completed) 32,000 33,900 Inventory in process, October 31 4,000 2,400 Total units to be...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of...
Cost of Units Transferred Out and Ending Work in Process The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $0.80 and $1.25, respectively. The equivalent units to be assigned costs are as follows: Equivalent Units Direct Materials Conversion Inventory in process, beginning of period 0 2,900 Started and completed during the period 41,000 41,000 Transferred out of Filling (completed) 41,000 43,900 Inventory in process, end of period 5,000 2,000 Total...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT