In: Accounting
Data:
Units: | |||
Beginning work in process | 5,000 | units | |
Transferred-in from the Moulding Department during the period | 26,000 | units | |
Completed during the period | 14,000 | units | |
Ending work in process (20% complete as to | |||
conversion work) | 17,000 | units | |
Costs: | |||
Beginning work in process (transferred-in cost, $160; | |||
conversion cost, $230) | $390 | ||
Transferred-in from the Moulding Department during the period | 4,800 | ||
Conversion costs added during the period | 1,858 |
1.
Fill in the time line for the Drying Department's process.
2.
Use the time line to compute the number of equivalent units of work performed by the Drying Department during the period, the cost per equivalent unit, and the total costs to account for.
3.
Assign total costs to (a) units completed and transferred to the assembly operation and (b) units in the Drying Department's ending work in process inventory.
Requirement 1. Fill-in the time line for the Drying Department.
Start |
Complete |
Complete |
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Requirement 2. Use the time line to compute the number of equivalent units of work performed by the Drying Department during the period, the cost per equivalent unit, and the total costs to account for.
Let's begin by to computing the number of equivalent units of work performed by the Drying Department during the period.
Fielding |
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Drying Department |
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Flow of Physical Units and Computation of Equivalent Units |
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Flow of |
Equivalent Units |
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Physical |
Transferred- |
Conversion |
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Flow of Production |
Units |
in |
Costs |
Units accounted for: |
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Total equivalent units |
Next, compute the cost per equivalent unit. (Round the cost per equivalent unit to the nearest cent.)
Fielding |
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Drying Department |
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Cost per Equivalent Unit |
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Transferred- |
Conversion |
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in |
Costs |
Total |
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Cost per equivalent unit |
Requirement 3. Assign total costs to
(a)
units completed and transferred to the assembly operation and
(b)
units in the Drying Department's ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round your answers to the nearest whole dollar.)
Fielding |
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Drying Department |
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Cost Assignment |
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Transferred- |
Conversion |
Total |
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in |
Costs |
Costs |
Assignment of total costs: |
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a. |
x ( |
+ |
) |
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b. |
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x |
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x |
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Total cost accounted for |
Requirement 1 | |||||||
Material | Conversion costs | ||||||
Start | Complete | Complete | |||||
31000 units | 31000 units | 17400 units | |||||
Requirement 2 | |||||||
Fielding | |||||||
Drying Department | |||||||
Flow of Physical units and Equivalent units | |||||||
Flow of Physical units | Equivalent unit | ||||||
Transferred In | Conversion Costs | ||||||
Units accounted for | 31000 | 31000 | |||||
Work in Process, beginning | 5000 | 5000 | 5000 | ||||
Transferred out | 9000 | 9000 | 9000 | ||||
Work in Process, ending | 17000 | 17000 | 3400 | ||||
Total units | 31000 | 31000 | 17400 | ||||
Fielding | |||||||
Drying Department | |||||||
Cost per equivalent units | |||||||
Transferred In | Conversion Costs | ||||||
Work in Process, beginning | 160 | 230 | |||||
Transferred in & conversion cost added during the period | 4800 | 1858 | |||||
Total costs | 4960 | 2088 | |||||
Equivalent units | 31000 | 17400 | |||||
Cost per equivalent unit | 0.16 | 0.12 | |||||
Requirement 3 | |||||||
Fielding | |||||||
Drying Department | |||||||
Cost assignment | |||||||
Transferred In | Conversion Costs | Total costs | |||||
Assignment of total costs | |||||||
a) units completed & transferred to assembly operation | 2240 | 1680 | |||||
b) Ending work in process inventory of drying department | 2720 | 408 | |||||
Total costs accounted for | 4960 | 2088 | |||||