Question

In: Accounting

Can someone post a clean and organized excel version w/ the journal entries as well for...

Can someone post a clean and organized excel version w/ the journal entries as well for the Weight Average AND FIFO solutions. Please!

The Company uses a single department production process. Materials are added at the start of the production process and labor and overhead are added as indicated. For January 2018, the Company records have the following information:

UNITS:
Beginning WIP:                                                                                                          10,000 units

100% complete for materials, 50% complete for labor; 3% complete for overhead

Units started in process                                                                                               50,000 units

Units completed                                                                                                          49,000 units

Ending WIP:                                                                                                             11,000 units

100% complete for materials, 60% complete for labor; 20% complete for overhead

PRODUCTION COSTS:

Work in Process, Beginning of the Month:
Materials                                          $ 22,000
Labor                                                   18,000
Overhead                                             11,000                                                          51,000

Current Month Costs:
Materials                                          $ 320,000
Labor                                                   180,160
Overhead                                             152,840                                    653,000

                                    Total Costs:                        $                                  704,000

REQUIRED:

Prepare a Cost of Production Summary using the weighted average method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for units completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.  Prepare the appropriate journal entries at month end.

Prepare a Cost of Production Summary using the FIFO method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for WIP, beginning, units started and completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately.  Prepare the appropriate journal entries at month end.

Solutions

Expert Solution

Weighted Average Method:
Units Material Completion Labor Completion Overhead Completion
Beginning WIP 10000 100% 50% 3%
Units Completed 49000 100% 100% 100%
Closing WIP 11000 100% 60% 20%
Equivalent Units:= Units Completed & Transferred + Closing Units*% of Completion (Respective)
Material Completion Labor Completion Overhead Completion
Units Completed 49000 49000 49000 49000 (49000* Respective Completion %)
Closing WIP 11000 11000 6600 2200 (11000* Respective Completion %)
Total 60000 55600 51200
Material Labor Overhead Total
Opening WIP Cost 22000 18000 11000 51000
Added Cost 320000 180160 152840 653000
Total Cost 342000 198160 163840 704000
Equivalent Units 60000 55600 51200
Cost per Equivalent Units 5.70 3.56 3.20 (Total Cost/E Units)
Allocation of Costs: Material Labor Overhead Total
To Unis Completed & Transferred 279300 174637 156800 610737
To Closing Stock 62700 23523 7040 93263
Total Cost 342000 198160 163840 704000
Material Account Dr. 279300
Labor Account Dr. 174637
Overhead Dr. 156800
To WIP Account 610737
(Being Cost transferred recorded)
FIFO Method:
Units Material Completion Labor Completion Overhead Completion
Beginning WIP 10000 100% 50% 3%
Units Completed: 49000 100% 100% 100%
From Opening WIP 10000 0% 50% 97%
From Current Production 39000 100% 100% 100%
Closing WIP 11000 100% 60% 20%
Equivalent Units:= Units Completed & Transferred + Closing Units*% of Completion (Respective)
Material Completion Labor Completion Overhead Completion
Units Completed: 49000
From Opening WIP 10000 0 5000 9700 (10000* Respective Completion %)
From Current Production 39000 39000 39000 39000 (39000* Respective Completion %)
Closing WIP 11000 11000 6600 2200 (11000* Respective Completion %)
Total 50000 50600 50900
Material Labor Overhead Total
Opening WIP Cost 22000 18000 11000 51000
Added Cost 320000 180160 152840 653000
Total Cost 342000 198160 163840 704000
Equivalent Units 50000 50600 50900
Cost per Equivalent Units 6.84 3.92 3.22 (Total Cost/E Units)
Allocation of Costs: Material Labor Overhead Total
Units Completed:
From Opening WIP 0 19581 31223 50804
From Current Production 266760 152732 125536 545028
Total Cost for Completed 266760 172313 156759 595832
To Closing Stock 75240 25847 7081 108168
Total Cost 342000 198160 163840 704000
Material Account Dr. 266760
Labor Account Dr. 172313
Overhead Dr. 156759
To WIP Account 595832
(Being Cost transferred recorded)

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