ACCTG424 Lecture Notes - Corn Chip, Indian Railways

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violetchinchilla775

8 Apr 2014

School

University of Alberta

Department

Accounting

Course

ACCTG424

Professor

Trish Stringer

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Document Summary

In class #17. 1 fifo method, equivalent units and unit costs, assigning costs. 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. 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. To account for (work done before current period) Degree of completion in this department: direct materials, 90%; conversion costs, 40%. 51 physical units completed and transferred out minus 8 physical units completed and transferred out from beginning work-in-process inventory. Summarize total costs to account for, and assign these costs to units completed and transferred out, and to units in ending work in process. Steps 3, 4, and 5: compute equivalent unit costs, summarize total costs to account for, and assign.

Related Questions

Consider the following data for November 2014 from

Gray Manufacturingâ Company, which makes silk pennants and uses aâ process-costing system. All direct materials are added at the beginning of theâ process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. Suppose Gray Manufacturing Company uses the FIFO method of process costing instead of theâ weighted-average method.

Physical Units	Direct	Conversion
	(Pennants)	Materials	Costs

Work inâ process, November 1	1,200	$1,103ââ	$711ââ
Started in November 20142014	â?
Good units completed and transferred out ââââduring November 2014	9,200
Normal spoilage	100
Abnormal spoilage	20
Work inâ process, November 30	1,900
Total costs added during November 2014		$13,026ââ	$26,446ââ

Superscript aaDegree ofâ completion: directâ materials,100â%; conversionâ costs,45â%.

Superscript bbDegree ofâ completion: directâ materials,100â%;conversionâ costs,35â%.

Requirement: Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

Physical
Flow of Production	Units
Work in process, beginning
Started during current period
To account for
Good units completed and transferred out during current period:
From beginning work in process
Started and completed
Normal spoilage
Abnormal spoilage
Work in process, ending
Accounted for
Equivalent units of work done in current period

		ââ	ââ





		ââ

aquamarinemanatee906

Equivalent Units, Cost per Equivalent Unit, ApplyingCosts.

Dixon Co. manufactures a product that goes through twodepartments prior to completion. The following information isavailable about work in the first department, the Mixing Departmentduring June:

Percent Completed

Units Materials Conversion

WIP,beginning 70,000 70% 40%

Started into production 460,000

Completed and

transferredout 450,000

WIP,ending 80,000 75% 25%

Materials Conversion

WIP,beginning $36,550 $ 13,500

Costs added duringJune $391,850 $287,300

Using the Weighted-Average method:

(1) Account for the actual physical units

(2) Determine the Equivalent Units for June for the firstprocess.

(3) Compute the costs per Equivalent Unit for June.

(4) Determine the total cost of ending Work in Process inventoryand the total cost of units transferred to the next process inJune.

(5) Reconcile the total costs assigned to the ending WIPinventory and the units transferred out with the costs in beginninginventory and the costs added during the period.

olivesardine984

The following information is available from the Oils Division ofGlasgow Corporation for December. Conversion costs for thisdivision were 80 percent complete as to beginning work-in-processinventory and 50 percent complete as to ending work-in-processinventory. Information about conversion costs follows:

	Unit	Conversion Costs
WIP at December 1 (80% complete)	20,000	$ 232,000
Units started and costs incurred during December	108,000	1,306,800
Units completed and transferred to next department duringDecember	80,000	?

The Oils Division uses FIFO.

Required:

a-1. Compute the equivalent units forconversion costs.

Equivalent units ?

a-2. Compute the cost per equivalent unit forconversion costs. (Round your answers to 2 decimalplaces.)

Cost per equivalent unit ?

a-3. What was the conversion cost ofwork-in-process inventory in the Oils Division at December 31?(Do not round intermediate calculations.)

Conversion cost ?

b. What were the conversion costs perequivalent unit produced last period and this period, respectively?(Round your answers to 4 decimal places.)

cost per unit

previous period ?

current period ?

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ACCTG424 Lecture Notes - Corn Chip, Indian Railways

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