6-37 Weighted-Average Method Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Percentage Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 5,000 100% 50% Started during May 15,000 Units to account for 20,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 12,000 Work-in-Process Inventory, May 31 3,000 100% 50% Total units accounted for 20,000 The following cost data are available: Work-in-Process Inventory, May 1 Direct materials $ 94,000 Conversion 133,120 Costs incurred during May Direct materials 229,800 Conversion 376,000 Required 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

6-37 Weighted-Average Method Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Percentage Completed Tons of Pulp Materials Conversion Work-in-Process Inventory, May 1 5,000 100% 50% Started during May 15,000 Units to account for 20,000 Units from beginning Work-in-Process, which were completed and transferred out during May 5,000 Started and completed during May 12,000 Work-in-Process Inventory, May 31 3,000 100% 50% Total units accounted for 20,000 The following cost data are available: Work-in-Process Inventory, May 1 Direct materials $ 94,000 Conversion 133,120 Costs incurred during May Direct materials 229,800 Conversion 376,000 Required 1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method. 2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

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Description: 6-37Weighted-Average Method Weatherly Lumber Company processes wood pulp for manufacturing various paper products. Thecompany employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of thepr

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Process Cost Systems

Section: Chapter Questions

Problem 18.17EX: Cost of production report The Cutting Department of Karachi Carpet Company provides the following...

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Entries for process cost system Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is .spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts arc maintained for factory overhead, and both have zero balances January 1. Manufacturing operations for January are summarized as follows: A. Materials purchased on account 500,000 B. Materials requisitioned for use: FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 C. Labor used: Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpinning Department 18,500 Indirect laborTufting Department 9,000 D. Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 E. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 F. Applied factory overhead: Spinning Department 80,000 Tufting Department 55,000 G. Production costs transferred from Spinning Department to Tufting Department 547,000 H. Production costs transferred from Tufting Department to Finished Goods 807,200 1. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
Cost of production report: average cost method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31, 2016: ACCOUNT Work in ProcessRoasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 10,500 units, 75% completed 21,000 31 Direct materials, 210,400 units 246,800 267,800 31 Direct labor 135,700 403,500 31 Factory overhead 168,630 572,130 31 Goods transferred. 208,900 units ? ? 31 Bal., ? units, 25% completed ? Instructions Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in ProcessRoasting Department.
Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
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Cost of production report The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process. Work in process. January 1, 1,400 units. 75% completed 22,960 Direct materials (1,400 12.65) 517,710 Conversion (1,400 75% .00) 5,250 22,960 Materials added during January from Weaving Department, 58,000 units 742,400 Direct labor for January 134,550 Factory overhead for January 151,611 Goods finished during January (includes goods in process, January 1), 5,.200 units Work in process. January 31, 3,200 units, 30% completed a. Prepare a cost of production report for the Cutting Department. b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).