Class Notes (835,243)
Accounting (108)
ACCTG424 (12)
Lecture

# Chapter 17 In Class Questions_solutions_ONLY.pdf

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School
Department
Accounting
Course
ACCTG424
Professor
Trish Stringer
Semester
Fall

Description
In Class #17.1 FIFO method, equivalent units and unit costs, assigning costs Required 1 Analyze the physical flow of actual units in the Assembly Division by calculating (stating) the beginning WIP, started and completed, units transferred out and ending WIP. See Exhibit 17.1-1 step 1 SOLUTION EXHIBIT 17.1-1 Steps 1 and 2: Summarize Output in Physical Units and Compute Equivalent Units FIFO Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2012 2) (Step (Step 1) Equivalent Units ConD Peresical Flow of Production Units Materials Costs Work in process, beginning (given) 8 (work done before current period) Started during current period (given) 55 To account for 63 (work done before current period) Completed and transferred out during curpertiod: § From beginning work in process 8 8  (100% – 90%); 8  (100% – 40%) 0.8 4.8 Started and completed 43 † 43  100%,43100% 43.0 43.0 Work in process, ending* (given) 12 12  60%; 12  30% 7.2 3.6 Accounted for 63 Work done in current period only 51.0 51.4 §Degree of completion in this department: driect materials, 90%; conversion costs, 40%. † 51 physical units completed and transferred out minus8 physical units completed and transferred out from beginning work-in-process inventory. *Degree of completion in this department: direct materials, 60%; conversion costs, 30%. Required 2 Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. See Exhibit 17.1-1 step 2 Required 3 Calculate cost per equivalent unit for direct materials and conversion costs. Direct material costs, added May \$35,420,000 Equivalent units 51 Cost per equivalent unit \$694,510 Conversion costs, May \$15,312,000 Equivalent units 51.4 Cost per equivalent units \$297,899 Required 4 Summarize total costs to account for, and assign these costs to units completed and transferred out, and to units in ending work in process. See Exhibit 17.1-2 below. SOLUTION EXHIBIT 17.1-2 Steps 3, 4, and 5: Compute Equivalent Unit Costs, Summarize Total Costs to Account For, and Assign Costs to Units Completed and to Units in EndingWork in Process FIFO Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2012 Total Conversion Direct Production Costs Materials Costs Work in process, beginning (\$5,426,960 + \$1,001,440) \$ 6,428,400 (costs of work done before current period) (Step 3) Costs added in current period (given) 50,732,000 \$35,420,000 Divide by equivalent units of work done in current period (Solution Exhibit 17-21) Cost per equivalent unit of work done in current period __________ (Step 4) Total costs to account for \$57,160,400 (Step 5) Assignment of costs: Completed and transferred out (51 units): Work in process, beginning (8 units) \$ 6,428,400 Direct materials added in current period 555,608 0.8*  \$694,510 Conversion costs added in current period 1,429,915 Total from beginning inventory 8,413,923 Started and completed (43 units) 42,673,587(43  \$694,510) + 43  \$297,899) Total costs of units completed & transf. out 51,087,510 Work in process, ending (12 units) maDterieaclts 5,000,4727.20 # Conovetrssion 1,072,436.40 3.6 Total work in process, ending 6,072,908.40 Total costs accounted for \$57,160,400 [rounded down] In Class #17.2 Weighted-average method, equivalent units and unit costs, assigning costs Required 1 Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. SOLUTION EXHIBIT 17.2-1 Steps 1 and 2: Summarize Output in Physical Units and Compute Equivalent Units Weighted-Average Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2012 (Step 1) (Step 2) UniPtEysicvlalent ConDvereiistn Flow of Production (given) Materials Costs Work in process beginning 8 Started during current period 55 To account for 63 Completed and transferred out during percodrent 51 51.0 51.0 Work in process, ending* (12 360%); 12  12 7.2 3.6 Accounted for 63 ____ Work done to date 58.2 54.6 *Degree of completion in this department: direct materials, 60%; conversion costs, 30%. Required 2 Calculate cost per equivalent unit for direct materials and conversion costs. Costs per equivalent unit: \$5,426,960 \$35,420,000 \$40,846,960 DM   58.2 58.2  \$701,837.80/ equivalent unit CV  \$1001,440 \$15,312,000 \$16,313,440 54.6 54.6  \$298,780.95/ equivalent unit Required 3 Summarize total costs to account for, and assign these costs to units completed (and transferred out) and to units in ending work in process. SOLUTION EXHIBIT 17-2 Steps 3, 4, and 5: Compute Equivalent Unit Costs, Summarize Total Costs to Account for, and Assign Costs to Units Completed and to Units in Ending Work in Process Weighted-Average Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2012 Total Conversion Direct Production Costs Materials Costs (Step 3) Work in process, beginning (given) \$ 6,428,400 Costs added in current period (given) 50,732,000 Costs incurred to date Divide by equivalent units of work done to date (Solution Exhibit 17-1) Cost per equivalent unit of work done to date (Step 4) Total costs to account for \$57,160,400 (Step 5) Assignment of costs: Completed a
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