# Cost Accounting Chapter 17 Solutions

12891 Words Jul 20th, 2013 52 Pages
CHAPTER 17
PROCESS COSTING

17-16 (25 min.) Equivalent units, zero beginning inventory.

1. Direct materials cost per unit (\$750,000 ÷ 10,000) \$ 75.00 Conversion cost per unit (\$798,000 ÷ 10,000) 79.80 Assembly Department cost per unit \$154.80

2a. Solution Exhibit 17-16A calculates the equivalent units of direct materials and conversion costs in the Assembly Department of Nihon, Inc. in February 2009. Solution Exhibit 17-16B computes equivalent unit costs.

2b. Direct materials cost per unit \$ 75 Conversion cost per unit 84 Assembly Department cost per unit \$159

3. The difference in the Assembly Department cost per unit calculated in requirements 1 and 2 arises because the costs incurred in January and February
Work in Process –– Assembly Department

Beginning inventory, Feb. 1 0 3. Transferred out to

1. Direct materials 750,000 Work in Process––Testing 1,431,000 2. Conversion costs 798,000 Ending inventory, Feb. 28 117,000

17-18 (25 min.) Zero beginning inventory, materials introduced in middle of process.

1. Solution Exhibit 17-18A shows equivalent units of work done in the current period of Chemical P, 50,000; Chemical Q, 35,000; Conversion costs, 45,000.

2. Solution Exhibit 17-18B summarizes the total Mixing Department costs for July 2009, calculates cost per equivalent unit of work done in the current period for Chemical P, Chemical Q, and Conversion costs, and assigns these costs to units completed (and transferred out) and to units in ending work in process.

SOLUTION EXHIBIT 17-18A

Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units;

Mixing Department of Roary Chemicals for July 2009.

| | | |
| |(Step 1) |(Step 2) |
| | |Equivalent