Question
In: Accounting
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown...
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:
| Percent Complete | |||||||||
| Units | Materials | Conversion | |||||||
| Work in process, beginning | 52,000 | 75 | % | 30 | % | ||||
| Started into production | 450,000 | ||||||||
| Completed and transferred out | 400,000 | ||||||||
| Work in process, ending | 102,000 | 60 | % | 40 | % | ||||
|
Materials |
Conversion |
||||||||
| Work in process, beginning | $ | 47,500 | $ | 27,000 | |||||
| Cost added during June | $ | 427,500 | $ | 147,000 | |||||
Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the first process.
2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)
4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)
Solutions
Expert Solution
1 Equivalent unit of conversion of Cloversweet inc
= 400,000 + (102,000 × 40%) = 440,800 units
Equivalent unit of material of CloverSweer
= 400,000 + (102,000 × 60%) = 461,200 units
2 Cost per equivalent unit of material
= (427,500 + 47,500) / 461,200 = $1.03
Cost per unit of conversion of Cloversweet Inc
= (147,000 + 27,000) / 440,800 = $0.39
3 Cost of units transferred out
= (400,000 × 1.03) + (400,000 × 0.39) = $569,863
Cost of Ending inventory of Cloversweet
= (40,800 × 0.39) + (1.03 × 61,200) = $79,137
4 Cost reconciliation of CloverSweet
| Particulars | units |
| Beginning work in process | 74,500 |
| Cost added during the period | 574,500 |
| Total | 649,000 |
| Cost allocated to ending inventory | 79,137 |
| Cost allocated to units completed and transferred out | 569,863 |
| Total | 649,000 |
Total cost of Cloversweet is $649,000, including beginning inventory $74,500 and cost added during the period $574,500.
ekkarill92 answered 1 year agoRelated Solutions
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown...
CloverSweet Inc. manufactures a product that goes through two
departments prior to completion. The information shown in the table
below is available about work in the first department, the Mixing
Department, during June:
Percent Complete
Units
Materials
Conversion
Work in process, beginning
51,700
75
%
30
%
Started into production
447,000
Completed and transferred out
397,000
Work in process, ending
101,700
60
%
40
%
Materials
Conversion
Work in process, beginning
$
47,200
$
26,700
Cost added during June
$...
CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown...
CloverSweet Inc. manufactures a product that goes through two
departments prior to completion. The information shown in the table
below is available about work in the first department, the Mixing
Department, during June:
Percent Complete
Units
Materials
Conversion
Work in process,
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50,000
75
%
30
%
Started into
production
430,000
Completed and
transferred out
380,000
Work in process,
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60
%
40
%
Materials
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$
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Cost added during
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the Packaging Department. The following information is available
about work in the first department, the Mixing Department, during
June.
Percent Completed
Units
Materials
Conversion
Work in process,
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60,000
70%
40%
Started into
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307,500
Completed and
transferred out
297,500
Work in process,
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75%
25%
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21,200
$
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departments prior to completion—the Mixing Department followed by
the Packaging Department. The following information is available
about work in the first department, the Mixing Department, during
June.
Percent Completed
Units
Materials
Conversion
Work in process,
beginning
46,000
70%
40%
Started into
production
248,000
Completed and
transferred out
238,000
Work in process,
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56,000
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25%
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the Packaging Department. The following information is available
about work in the first department, the Mixing Department, during
June. Percent Completed Units Materials Conversion Work in process,
beginning 76,000 70% 40% Started into production 375,500 Completed
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Firenze, Inc., manufactures a product that goes through two departments prior to completion—the Mixing Department followed...
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departments prior to completion—the Mixing Department followed by
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Pounds completed and transferred out
?
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Information on work in the first department, Cooking, is given
below for May:
Production
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Pounds in
process, May 1; materials
100% complete; conversion 90%
complete
63,000
Pounds
started into production during May
280,000
Pounds
completed and transferred out
?
Pounds
in process, May 31:
materials 75% complete;
conversion 25% complete
23,000
Cost data:
Work in
process inventory, May 1:...
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Information on work in the first department, Cooking, is given
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