In: Accounting
The Sanding Department of Kayden Company has the following production and cost data for November.
Production Costs
1. Started and completed 9,000 units. Beginning work in process $ -0-
2. Started 3,000 units that are 75% Materials 56,250
completed at November 30. Labor 123,750
Manufacturing Overhead 45,000
Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Kayden Company uses the FIFO method to compute equivalent units.
(a) Determine the equivalent units of production for (1) materials and (2) conversion costs.
(b) Compute unit costs and show the assignment of manufacturing costs to units transferred out and in work in process.
(c) Repeat parts (a) and (b) above, if beginning work in process consists of 1,000 units valued at $10,325 ($4,800 are materials). The units are 40% complete as to conversion costs. Materials costs are unchanged, labor costs are $125,669 and manufacturing overhead costs are $49,000.
Note: Round all calculations to the nearest penny
a and b) | |||||||
Statement of Equivalent production | |||||||
Particulars | Direct Materials | %completion | Equivalent mat | Conversion | %completion | Equivalent Conv | Total |
Opening WIP | - | 0% | - | - | 0% | - | |
Units started and completed | 9,000.00 | 100% | 9,000.00 | 9,000.00 | 100% | 9,000.00 | |
ending WIP | 3,000.00 | 100% | 3,000.00 | 3,000.00 | 75% | 2,250.00 | |
Equivalent Units | 12,000.00 | 11,250.00 | |||||
Current Month Costs | 56,250.00 | 168,750.00 | 225,000.00 | ||||
Cost per Equivalent units | 4.69 | 15.00 | |||||
Ending WIP Units | 3,000.00 | 2,250.00 | |||||
Cost of ending WIP | 14,062.50 | 33,750.00 | 47,812.50 | ||||
Units transferred | 9,000.00 | 9,000.00 | |||||
Cost of units transferred | 42,187.50 | 135,000.00 | 177,187.50 | ||||
c) | |||||||
Statement of Equivalent production | |||||||
Particulars | Direct Materials | %completion | Equivalent mat | Conversion | %completion | Equivalent Conv | Total |
Opening WIP | 1,000.00 | 100% | 1,000.00 | 1,000.00 | 100% | 1,000.00 | |
Units started and completed | 9,000.00 | 100% | 9,000.00 | 9,000.00 | 100% | 9,000.00 | |
ending WIP | 3,000.00 | 100% | 3,000.00 | 3,000.00 | 75% | 2,250.00 | |
Equivalent Units | 13,000.00 | 12,250.00 | |||||
Opening WIP Costs | 4,800.00 | 5,525.00 | 10,325.00 | ||||
Current Month Costs | 56,250.00 | 174,669.00 | 230,919.00 | ||||
Total Costs | 61,050.00 | 180,194.00 | 241,244.00 | ||||
Cost per Equivalent units | 4.70 | 14.71 | |||||
Ending WIP Units | 3,000.00 | 2,250.00 | |||||
Cost of ending WIP | 14,088.46 | 33,096.86 | 47,185.32 | ||||
Units transferred | 10,000.00 | 10,000.00 | |||||
Cost of units transferred | 46,961.54 | 147,097.14 | 194,058.68 |