6-31 Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant: Work-in-Process Inventory, September 1 4,000,000 gallons Direct materials 50% completed Conversion 20% completed Units started in process during September 4,850,000 gallons Work-in-Process Inventory, September 30 2,400,000 gallons Direct materials 40% completed Conversion 60% completed Required Compute the equivalent units of direct materials and conversion for the month of September. Use both the weighted-average and the FIFO methods.

6-31 Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant: Work-in-Process Inventory, September 1 4,000,000 gallons Direct materials 50% completed Conversion 20% completed Units started in process during September 4,850,000 gallons Work-in-Process Inventory, September 30 2,400,000 gallons Direct materials 40% completed Conversion 60% completed Required Compute the equivalent units of direct materials and conversion for the month of September. Use both the weighted-average and the FIFO methods.

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Description: 6-31Equivalent Units; Weighted-Average and FIFO Methods Murray Chemical Company refines a variety of petrochemical products.These data are from the firm's Houston plant:Work-in-Process Inventory, September 14,000,000 gallonsDirect materials50% compl

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 5BE: The cost of direct materials transferred into the Rolling Department of Kraus Company is 3,000,000....

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Murray Chemical Company refines a variety of petrochemical products. These data are from the firm’s Houston plant: Work-in-process inventory, September 1 4,930,000 gallons Direct materials 50% completed Conversion 20% completed Units started in process during September 6,060,000 gallons Work-in-process inventory, September 30 2,570,000 gallons Direct materials 40% completed Conversion 60% completed Required: 1. Compute the equivalent units of direct materials and conversion for the month of September using the weighted-average method. 2. Compute the equivalent units of direct materials and conversion for the month of September using the FIFO method.
ssume the following information: Milling Department Materials Conversion Total Cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 Costs added during the period 291,600 394,500 686,100 Total cost $ 301,600 $ 409,500 $ 711,100 Assume the equivalent units of production for materials and conversion, when using the weighted-average method, are 5,200 units and 5,000 units, respectively. If the equivalent units in ending work in process inventory for materials and conversion are 400 units and 200 units, respectively, then what is the total cost of ending work in process for the Milling Department?
Required information [The following information applies to the questions displayed below.] The following data reports on the July production activities of the Molding department at Ash Company. Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion 450,450 $ 19,350 2,520 $ 21,870 246,330 696,780 Total costs to account for $ 718,650 Direct Materials Conversion Percent Percent Units Complete Beginning work in process inventory 2,000 100% Complete 20% Units started this period 38,500 Completed and transferred out 38,000 Ending work in process inventory 2,500 100% 60% Prepare the Molding department's production cost report using the weighted average method. Note: Round "Cost per EUP" to 2 decimal places. Unit Reconciliation Units to account for Total units to account for Units accounted for
Computing EUP—FIFO Method Refer to Short Exercise S18A-15. At Spring Fresh Water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. Now assume that in February, 130,000 liters were completed and transferred out of the Filtration Department into the Bottling Department. The 70,000 liters remaining in Filtration’s ending Work-in-Process Inventory were 80% of the way through the filtration process Recall that Spring fresh has no beginning inventories. Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department using the FIFO method.
P1: Computation of Physical flow of units and equivalent units Jade Paint Inc. manufactures paint using two processes - Mixing and Canning . On March 1st, the company provided the following production data for the Mixing department: % of completion Units in gallon Direct Materials Conversion Beginning WIP 8,000 60% 40% Units started during the period 48,000 Units completed and transferred to the canning process: 50,000 fl. oz. 50,000 Ending WIP ? 80% 60% Required: a) Compute the units in the ending work-in-process inventory. b) Compute the equivalent units of production (EU) for direct materials and conversion using the weighted average method. Solution: a) Use Physical flow of units formula to compute Ending WIP. BWIP + US = UCTO + EWIP EWIP = BWIP + US - UCTO…
FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Direct Materials Conversion Costs Units started and completed 14,000 14,000 Units, beginning work in process: 5,000 × 0% — — 5,000 × 40% — 2,000 Units, ending work in process: 3,000 × 100% 3,000 — 3,000 × 75% — 2,250 Equivalent units of output 17,000 18,250 The cost per equivalent unit for the period was as follows: Direct materials $4.00 Conversion costs 12.00 Total $16.00 The cost of beginning work in process was direct materials, $80,000; conversion costs, $60,000. Required: Question Content Area 1. Determine the cost of ending work in process. Determine the cost of goods transferred out.…
Exercise 8-37 (Algo) Compute Costs per Equivalent Unit: Weighted-Average Method (LO 8-2, 3) The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total Materials are added at the beginning of the process. The following quantities have been recorded: Beginning inventory, 47,000 partially complete gallons, 95 percent complete with respect to conversion costs. • Units started in July, 87,000 gallons. Units transferred out in July, 97,000 gallons. • Ending inventory, 37,000 gallons, 40 percent complete with respect to conversion costs. Cost per equivalent unit $ 63,000 42,000 $ 105,000 Required: Compute the cost per equivalent unit for direct materials and conversion costs for July using the weighted-average method. Note: Round your answers to 2 decimal places. Direct Materials $ 190,000 440,000 $630,000 Conversion Costs
es Exercise 8-39 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-2,5) The following cost information is available for July for the Crest Plant at Calvert Company: Beginning work-in-process inventory Materials cost Conversion cost Total Current costs Materials cost Conversion cost Total $ 59,000 38,000 $ 97,000 $ 150,000 400,000 $ 550,000 Materials are added at the beginning of the process. The following quantities have been recorded: ⚫ Beginning inventory, 43,000 partially complete gallons, 55 percent complete with respect to conversion costs. ⚫ Units started in July, 83,000 gallons. • Units transferred out in July. 93,000 gallons. • Ending inventory, 33,000 gallons, 70 percent complete with respect to conversion costs. Required: Compute the cost per equivalent unit for direct materials and for conversion costs for July using the FIFO method. Note: Round your answers to 2 decimal places. Cost per Equivalent Unit Direct Materials $ 1.19 Conversion Costs $ 4.44
[The following information applies to the questions displayed below.] The following data reports on the July production activities of the Molding department at Ash Company. Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for 875,840 $ 27,150 3,658 $ 30,800 552,450 323,390 5906,640 Direct Materials Conversion Percent Percent Units Complete Complete Beginning work in process inventory 2,500 100% 20% Units started this period 43,500 Completed and transferred out 43,000 Ending work in process inventory 3,000 100% без Prepare the Molding department's production cost report using the weighted average method. Note: Round "Cost per EUP" to 2 decimal places. Unit Reconciliation Units to account for Total units to account for Units accounted for Total units accounted for Equivalent Units of Production (EUP) Equivalent units of production Cost per EUP Total costs -Equivalent units of production Cost per equivalent…
Weighted Average Method, FIFO Method, Physical Flow, Equivalent Units Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: All materials are added at the beginning of the process. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs. Started in process, 175,000 units. Required: Question Content Area 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method. 4. Suppose that the cost of direct materials in beginning work in process is $560,000 and that the direct materials cost incurred for October is…
Q.3. New Method Company uses a process cost system to manufacture sensors for the security industry. The company uses Weighted Average method. The following information pertains to operations of Processing Department K for the most recent month: Units Beginning Work-in-Process Inventory 16,000 Units completed during the month 92,000 Ending Work-in-Process Inventory 24,000 The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs. Costs pertaining to the month were as follows: Beginning inventory costs: materials, $54,560; conversion cost, $35,560 Costs incurred during the month: materials used, $468,000; conversion cost, $574,040 Requirement – For Processing Department K: A) Calculate be the total equivalent units of production for Direct Materials and Conversion Cost for Processing Department K B) Calculate the unit cost of Materials…
Required Information [The following information applies to the questions displayed below.] The first production department of Stone Incorporated reports the following for April. Direct Materials Total Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 69,000 367,808 345,000 91,200 Percent Complete 88% 88% Unite Conversion Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. Percent Complete 20% Percent Complete Equivalent units of production: Weighted average method Direct Materiale 30% EUP Percent Complete Conversion EUP