ACC 117 Lecture Notes - Lecture 22: Pasteurization, Finished Good

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redminnow421

25 Nov 2020

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Number of units completed + ((number of units in ending work- Calculate the costs per equivalent unit (average cost/unit) (current product cost + cost of beginning work-in-process) // # of. Number of units completed * average cost/unit. Total cost finished (transferred out) (hw notes) Job-order costing company produces many different products in one facility. Operation costing both job-order and process costing (some common and distinct characteristics. Products typically processed in batches, with each batch charged based on the materials used. Labor/overhead costs accumulated by operation or department, assigned to units as in-process costing. Process costing company produces a continuous flow of units that are not distinct from each other. Makes no sense to identify materials/labor/overhead to each customer, because everything is the same. Ex: dairy corp. has 3 departments milking, sampling & pasteurization, and. Organizational units where work is performed and materials / labor/ Wip finished goods cost of goods sold overhead costs are added.

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Equivalent units of production (EUP) weighted averagemethod
	Units	% Materials	EUP â Materials	% Conversion	EUP Conversion
(Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1
(Beg. goods in process inventory - units / total unitsaccounted for / total units to accounted for / units completed& transferred out / units started this period) - Select 1
Total units
Cost per equivalent unit of production			Materials		Conversion
(Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1
(Costs transferred out / costs incurred this period / costs ofending work in process / cost of beg. work in process) - Select1
Totalcosts		Costs		Costs
Divide Equivalent units production		EUP		EUP
Cost per equivalent unit of production			Materials		Conversion


Totalcosts		Costs		Costs
DivideEquivalent units of Production		EUP		EUP
Costper equivalent unit of production
Total costs accounted for:
Cosof units transferred out:	EUP	Cost per EUP	Total cost
Directmaterials
Conversion
Totalcosts transferred out

Costs of endingWIP EUP Cost perEUP Total Cost

Directmaterials _____ $______ ______

Conversion ______ $_______ _______

Total cost of ending WIP

Total costs accounted for

Total costs to account for:
(Cost transferred out/costs incurred this period/cost ofending work in process/ cost of beg. work in process) - Select1
(Cost transferred out/costs incured this period/cost ofending work in process/ cost of beg. work in process) - Selecet1
Total costs accounted for:
Total costs accounted for:
Difference due to rounding costs/unit:
Unit reconciliation:
(Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period)
(Beg. work in pricess inventory - units / ending work inprocess units / units completed & trasnferred out / unitsstarted this period)
(extra row - ignore)
Total units to acount for:
Total units accounted for:
Units completed & transferred out
Ending Work in process - units
Total units accounted for:

Tamar Co. manufactures a single product in one department. Alldirect materials are added at the beginning of the manufacturingprocess. Conversion costs are added evenly throughout the process.During May, the company completed and transferred 25,200 units ofproduct to finished goods inventory. Its 3,600 units of beginningwork in process consisted of $20,400 of direct materials and$248,940 of conversion costs. It has 2,700 units (100% completewith respect to direct materials and 80% complete with respect toconversion) in process at month-end. During the month, $677,100 ofdirect material costs and $2,350,260 of conversion costs werecharged to production.

1. Prepare the company's process cost summary for May usig theweighted- average method. (Charts before question)

Prepare the journal entry dated May31 to transfer the cost of completed units to finished goodsinventory. (Do not roundintermediate calculations. Round your final answer to the nearestwhole dollar.)

JournalEntry Worksheet

Record the transfer of goods tofinished goods inventory.

Date General Journal debit Credit

May 31

thod.

erincod948


Weighted Average Process Costing:
Minot Processing Company manufactures one product on acontinuous basis in two departments, Processing and Finishing. Allmaterials are added at the beginning of work on the product in theProcessing Department. During December 2009, the following eventsoccurred in the Processing Department:
Units started	16,000 units
Units completed and transferred to Finishing Department	15,000 units

Costs assigned to processing:Raw materials (one unit of rawmaterials for each unit of product started)	$142,900.00
Manufacturing supplies used	18,000
Direct labor costs incurred	51,000
Supervisors' salaries	12,000
Other production labor costs	14,000
Depreciation on equipment	6,000
Other production costs	18,000

Additional information follows:
Minot uses weighted average costing and applies manufacturingoverhead to Work-in-Process at the rate of 100 percent of directlabor cost.
Ending inventory in the Processing Department consists of 3,000units that are one-third converted.
Beginning inventory contained 2,000 units, one-half converted,with a cost of $34,500 ($24,500 for materials and $10,000 forconversion).
(a) Prepare a cost of production report for theProcessing Department for December.
Minot Processing Company: Processing Department Cost of Production Report For the Month Ending December 31, 2009
Summary of units in process:
Beginning
Units started
In process
Completed
Ending
Equivalent units in process:		Materials	Conversion	Total
Units completed
Plus equivalent units in ending inventory
Equivalent units in process
Total cost to be accounted for and cost per equivalent unit in process:
Beginning work-in-process		$	$	$
Current costs
Total cost in process		$	$	$
Equivalent units in process		+	+
Cost per equivalent unit in process		$	$	$
Accounting for total costs:
Transferred out				$
Ending work-in-process:
Materials			$
Conversion
Total cost accounted for				$
(b) Prepare an analysis of all changes inWork-in-Process.
Work-in-process:
Beginning			$
Current manufacturing costs:
Direct materials		$
Direct labor
Applied overhead
Total			$
Cost of goods manufactured
Ending			$

tealbuffalo667

[The following information applies to the questions displayed below.]

The following partially completed process cost summary describes the July production activities of Ashad Company. Its production output is sent to its warehouse for shipping. All direct materials are added to products when processing begins. Beginning work in process inventory is 20% complete with respect to conversion.

Equivalent Units of Production	Direct Materials			Conversion
Units transferred out		37,500	EUP		37,500	EUP
Units of ending work in process		2,000	EUP		1,200	EUP
Equivalent units of production		39,500	EUP		38,700	EUP

Costs per EUP	Direct Materials			Conversion
Costs of beginning work in process		$	13,450		$	1,860
Costs incurred this period			440,800			238,080
Total costs		$	454,250		$	239,940


Units in beginning work in process (all completed during July)	1,500
Units started this period	38,000
Units completed and transferred out	37,500
Units in ending work in process	2,000

Exercise 16-12 Weighted average: Completing a process cost summary LO C3

Prepare its process cost summary using the weighted-average method. (Round "Cost per EUP" to 2 decimal places.)

Costs Charged to Production


Total costs to account for
Total costs accounted for
*Difference due to rounding cost/unit
Unit Reconciliation
Units to account for


Total units to account for
Total units accounted for


Total units accounted for
Equivalent Units of Production (EUP)- Weighted Average Method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion


Equivalent units of production
Cost per EUP			Materials		Conversion


Total costs		Costs		Costs
Ã· Equivalent units of production		EUP		EUP
Cost per equivalent unit of production
Cost Assignment and Reconciliation
Costs transferred out	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total transferred out
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total ending work in process
Total costs accounted for

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ACC 117 Lecture Notes - Lecture 22: Pasteurization, Finished Good

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