Question

Problem 4-47A Jessica Company manufactures hockey pucks and soccer balls. For both products, materials are added at the beginning of the production process and conversion costs are incurred evenly. Jessica uses the FIFO method to calculate equivalent units. Production and cost data for the month of August are as follows: Production Data—Hockey pucks Units Percent Complete Work in process units, August 1 430 70% Units started into production 1,660 Work in process units, August 31 610 30% Cost Data—Hockey pucks Work in process, August 1 $1,110 Direct materials 1,992 Direct labour 1,160 Manufacturing overhead 883 Production Data—Soccer balls Work in process units, August 1 340 90% Units started into production 2,320 Work in process units, August 31 250 60% Cost Data—Soccer balls Work in process, August 1 $450 Direct materials 3,712 Direct labour 990 Manufacturing overhead 1,489

Calculate the following for both the hockey pucks and the soccer balls: (Round answers to the nearest whole dollar, e.g. 5,275. Round per unit costs to the 3 decimal places, e.g. 15.253.) (Question) The assignment of costs to units transferred out and to work in process at the end of the accounting period. Hockey pucks Soccer balls Beginning WIP $ $ Complete beginning WIP $ $ Started and completed $ $ Ending WIP $ $

Answer 1

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Jessica Company
Cost of Production Report-Hockey pucks					Goods finished in August
For the Month Ended August 31		Equivalent Units			Work in process units, August 1	430.00
Unit information	Physical Units	Materials	Conversion		Add: Units started into production	1,660.00
Units charged to production:					Less: Work in process units, August 31	610.00
Inventory in process August 1	430.00				Goods finished in August	1,480.00
Started production	1,660.00
Total units accounted for by the Roasting Department	2,090.00				Started and completed in August
					Goods finished in August-	1,480.00
Units to be assigned costs:					Less: Opening work in process	430.00
Inventory in process August 1	430.00	-	129.00		Started and completed in August	1,050.00	B
Started and completed in August	1,050.00	1,050.00	1,050.00
Total units completed	1,480.00	1,050.00	1,179.00
Inventory in process, August 31	610.00	610.00	183.00
Total units to be assigned costs:	2,090.00	1,660.00	1,362.00
Cost Information				Total
Costs per equivalent unit
Total costs for August		1,992.00	2,043.00
Total equivalent units		1,660.00	1,362.00
Cost per equivalent unit		1.20	1.50
Costs assigned to production:
Inventory in process, August 1				1,110.00
Costs incurred in August		1,992.00	2,043.00	4,035.00
Total costs accounted				5,145.00
Costs allocated to completed and partially completed units
Inventory in process, August 1				1,110.00
To complete inventory in process, August 1		-	193.50	193.50	Answer 1
Cost of completed August 1 work in process				1,303.50	Answer 2
Started and completed in August		1,260.00	1,575.00	2,835.00	Answer 3
Transferred to finished goods in August				4,138.50
Inventory in process, August 31		732.00	274.50	1,006.50	Answer 4
Total costs assigned by the Department				5,145.00

Jessica Company
Cost of Production Report-Soccer balls					Goods finished in August
For the Month Ended August 31		Equivalent Units			Work in process units, August 1	340.00
Unit information	Physical Units	Materials	Conversion		Add: Units started into production	2,320.00
Units charged to production:					Less: Work in process units, August 31	250.00
Inventory in process August 1	340.00				Goods finished in August	2,410.00
Started production	2,320.00
Total units accounted for by the Roasting Department	2,660.00				Started and completed in August
					Goods finished in August-	2,410.00
Units to be assigned costs:					Less: Opening work in process	340.00
Inventory in process August 1	340.00	-	34.00		Started and completed in August	2,070.00	B
Started and completed in August	2,070.00	2,070.00	2,070.00
Total units completed	2,410.00	2,070.00	2,104.00
Inventory in process, August 31	250.00	250.00	150.00
Total units to be assigned costs:	2,660.00	2,320.00	2,254.00
Cost Information				Total
Costs per equivalent unit
Total costs for August		3,712.00	2,479.00
Total equivalent units		2,320.00	2,254.00
Cost per equivalent unit		1.60	1.10
Costs assigned to production:
Inventory in process, August 1				450.00
Costs incurred in August		3,712.00	2,479.00	6,191.00
Total costs accounted				6,641.00
Costs allocated to completed and partially completed units
Inventory in process, August 1				450.00
To complete inventory in process, August 1		-	37.39	37.39	Answer 1
Cost of completed August 1 work in process				487.39	Answer 2
Started and completed in August		3,312.00	2,276.63	5,588.63	Answer 3
Transferred to finished goods in August				6,076.03
Inventory in process, August 31		400.00	164.97	564.97	Answer 4
Total costs assigned by the Department				6,641.00