Managerial Accounting

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5-5Production Report, No Beginning Inventory
Wantler Company
Mixing Department
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Production Report for 2001

Unit Information
Units to account for:
Units in beginning WIP0
Units started75,000
Units to account for75,000

Units accounted for:
Equivalent Units
PhysicalDirectConversion
FlowMaterialsCosts
Units completed75,00075,00075,000
Units in ending WIP12,00012,00011,400
Total units accounted for87,00087,00086,400

Cost Information Costs to account for:
DirectConversion
MaterialsCostsTotal
Costs in beginning WIP$0$0$0
Costs added by department75,000372,000447,000
Total costs to account for$75,000$372,000$447,000

Cost per equivalent unit$1.00$5.00$6.00

Costs accounted for:
Units completed (75,000 $6.00)$450,000
Ending work in process (12,000 $1.00) + (11,400 $5.00)69,000
Total costs accounted for$519,000

5–6Weighted Average Method, FIFO, Physical Flow, Equivalent Units 1.Physical flow schedule:

Units, beginning work in process12,000
Units started20,000
Units to account for22,000

Units completed and transferred out:
Started and completed1,200
From beginning work in process12,000
Units, ending work in process8,800
Total units accounted for22,000

2.Equivalent units—Weighted average method:
Direct MaterialsConversion Costs
Units completed13,20013,200
Units, ending work in process:
8,800 100%8,800
8,800 25%2,200
Equivalent units of output22,00015,400

3.Equivalent units—FIFO method:
Direct MaterialsConversion Costs
Units started and completed1,2001,200
Units, beginning work in process:
12,000 0%0
12,000 70%8,400
Units, ending work in process:
8,800 100%8,200
8,800 25%2,200
Equivalent units of output9,40011,800

5–7FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process
1.Ending work in process:
Direct materials (4,000 $3.00)$12,000
Conversion costs (3,000 $5.00)15,000
Total ending work in process$27,000

Cost of goods transferred out:
Units started and completed (11,000 $8.00)$88,000
Units, beginning work in process:
Prior-period costs60,000
Current costs to finish (5,000 $5.00)25,000
Total cost of goods transferred out$173,000

2.Physical flow schedule:

Units to account for:
Units, beginning work in process5,000
Units started15,000
Total units to account for20,000

Units accounted for:
Units completed:
Started and completed 11,000
Units, beginning work in process5,000
Units, ending work in process4,000
Total units accounted for 20,000

5-8FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process
ABCD
Completed18,000a22,000c40,000d50,000f
Units in ending WIP800b02,000e1,000g
Equivalent units18,80022,00042,00051,000

a(3,000 + 19,000 – 4,000).e(8,000 0.25).
b(4,000 0.20).f(35,000 + 25,000 – 10,000).
c(2,000 + 20,000 – 0).g(10,000 0.10).
d(48,000 – 8,000).

5–9Equivalent Units, FIFO Method
ABCD
Started and completeda15,00020,00040,00025,000
Beginning work in processb2,100500010,000
Ending work in processc80002,000 1,000
Equivalent...
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