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In: Accounting

Jones Cleaning Supplies reports the following for March for its Finishing Department: UNITS Beginning Work-in-Process Inventory...

Jones Cleaning Supplies reports the following for March for its Finishing Department: UNITS Beginning Work-in-Process Inventory (20% complete for direct materials, 70% complete for conversion costs 4,000 units Transferred in from Mixing Department during March 14,000 units Completed and transferred out to Finished Goods inventory during March 15,000 units Ending Work-in-Process Inventory (30% complete for direct materials, 80% complete for conversion costs) 3,000 units COSTS Work-in-Process Inventory, August 31 (transferred in costs, $11,400; direct materials costs, $1,000; conversion costs, $1,800) $14,200 Transferred in from Mixing Department during March (calculated in problem 1 above) ? Direct materials added during March 5,360 Conversion costs added during March 24,300 Print the blank producon cost report (not the report with instrucons although you may refer to this report if you get stuck). Complete the blank producon cost report for the Finishing Department for the month of March 2018 and answer the following quesons: (g) Number of equivalent units for the month of March for transferred-in _________________ (h) Number of equivalent units for the month of March for direct materials _________________ (i) Number of equivalent units for the month of March for conversion costs ________________ (j) Cost per equivalent unit for transferred-in costs ____________________________________ (k) Cost per equivalent unit for direct materials________________________________________ (l) Cost per equivalent unit for conversion costs _______________________________________ (m) Cost assigned to completed and transferred units for March ___________________________ (n) Cost assigned to March 31 ending inventory _______________________________________

Solutions

Expert Solution

g) No. of equivalent units for the month of March for transferred in = 14,000 units

h) Equivalent units for direct materials = (Opening WIP*80%)+Started and completed units+(Ending WIP*30%)

= (4,000 units*80%)+(15,000 Completed - 4,000 opening WIP)+(3,000 units*30%)

= 3,200 units+11,000 units+900 units = 15,100 units

Workings:

As beginning WIP is 20% complete in respect of materials, it means remaining 80% is completed in the month of March and 30% of ending WIP is completed in the month of March.

i) Equivalent units for conversion costs = (Opening WIP*30%)+Started and completed units+(Ending WIP*80%)

= (4,000 units*30%)+(15,000 Completed - 4,000 opening WIP)+(3,000 units*80%)

= 1,200 units+11,000 units+2,400 units = 14,600 units

j) Cost of transferred in units during march is missing in the question (Sorry I am unable to aswer this part but I can mention the formula)

Cost per equivalent unit for transferred in units = Cost of transferred in units during march/14,000 units

k) Cost per equivalent unit for direct materials = Direct materials added during March/Equivalent units

= $5,360/15,100 units = $0.3550 per unit

l) Cost per equivalent unit for Conversion costs = Conversion cost added during March/Equivalent units

= $24,300/14,600 units = $1.6644 per unit

ekkarill92 answered 1 year ago
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