ACC 650 - Managerial Accounting Process Costing Revised Problem 4-29 Moravia Company processes and packages cream...

ACC 650 - Managerial Accounting

Process Costing

Revised Problem 4-29

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Work in process, June 1 - 60,000 units:
Direct material: 100% complete cost of	110,000
Conversion: 30% complete, cost of	43,000
Balance in work in progress, June 1	153,000
Units started during June	180,000
Units completed during June and transferred out to finished-goods inventory	210,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 80% complete
Costs Incurred During June:
Direct Material	420,000
Conversion Costs:
Direct Labor	93,250
Applied Manufacturing Overhead	283,400
Total Conversion Costs	376,650

Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of units costs.

4. Analysis of total costs.

5. Construct an Excel spreadsheet and show all of the preceding requirements

Show how the solution would change if the following data change: June 1 work-in-process costs were $84,000 for direct material and $26,000 for conversion.

PLEASE SHOW THE WORK

Solutions

Expert Solution

Units to account for
Work in process-Beginning inventory	60000
Units started during the period	180000
Total units to account for	240000
Units accounted for
completed and transferred out	210000
Work in process -ending inventory (balancing figure)	30000
Total units accounted for	240000

	Material	conversion
Units completed and transferred out	210000	210000
Ending work in process inventory	30000*100%=30000	30000*80%=24000
Equivalent unit of production	240000	234000

	Material	conversion
Beginning work in process cost	110000	43000
current period cost	420000	376650
Total cost of work in process [A]	530000	419650
Equivalent unit of production [B]	240000	234000
unit cost [A/B]	2.20833	1.79338

Cost to account for	Material	conversion	Total
Beginning work in process	110000	43000	153000
current period cost	420000	376650	796650
Total cost to account for	530000	419650	949650
cost accounted for
completed and transferred out (equivalent unit *unit cost)	210000*2.20833= 463749	210000*1.79338= 376610	840359
Ending work in process	30000*2.20833= 66250	24000*1.79338= 43041	109291
Total cost accounted for	529999 (approx to 530000)	419651 (approx to 419650)	949650

#The difference in total cost accounted for amounting to $ 1 is due to decimal places in unit cost

ekkarill92 answered 1 year ago

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