3 Exercise 6-36 Weighted Average Method, Unit Costs, Valuing InventoriesByford Inc. produces a product that passes through two processes. During November, equivalentunits were calculated using the weighted average method:Units completedAdd: Units in EWIP X Fraction complete(60,000 x 40 percent)Equivalent units of output (weighted average)Less: Units in BWIP X Fraction complete(50,000 x 70 percent)Equivalent units of output (FIFO)196,00024,000220,000BWIPCosts addedTotal35,000185,000The costs that Byford had to account for during the month of November were as follows:$ 107 000993,000$1,100,000Required:1. Using the weighted average method, determine unit cost.2. Under the weighted average method, what is the total cost of units transferred out? What isthe cost assigned to units in ending inventory?3.Conceptual Connection: Bill Johnson, the manager of Byford, is considering switching fromWeighted Average to FIFO. Explain the key differences between the two approaches andmake a recommendation to Bill about which method should be used.OBJ

Using the weighted average method, determine unit cost.Unit cost = Total cost / Equivalent units of…

Answered: Exercise 6-36 Weighted Average Method,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

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Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

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Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...

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Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: Units completed 190,000 Add: Units in EWIP X Fraction complete: (51,000 X 30%) 15,300 Equivalent units of output (weighted average) 205,300 Less: Units in BWIP X Fraction complete: (10,000 X 80%) 8,000 Equivalent units of output (FIFO) 197,300 The costs that Byford had to account for during the month of November were as follows: Beginning work in process $114,000 Costs added 1,179,390 Total $1,293,390 1. Using the weighted average method, determine unit cost. Round to the nearest cent.$per unit 2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? Cost of units transferred out $ Cost of ending inventory $ 3. Bill Johnson, the manager of Byford, is…
Weighted Average Method, Unit Costs, Valuing Inventories Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: Units completed 196,000 Add: Units in EWIP X Fraction complete (60,000 X 40%) 24,000 Equivalent units of output (weighted average) 220,000 Less: Units in BWIP X Fraction complete (50,000 X 70%) 35,000 Equivalent units of output (FIFO) 185,000 The costs that Byford had to account for during the month of November were as follows: BWIP $107,000 Costs added 993,000 Total $1,100,000 Required: 1. Using the weighted average method, determine unit cost. $per unit 2. Under the weighted average method, what is the total cost of units transferred out? What is the cost assigned to units in ending inventory? Cost of units transferred out $ Cost of ending inventory $ 3. Bill Johnson, the manager of Byford, is considering switching from weighted average to…
Cost Accounting assignment 1) Mixed cost – high-low method analysis Byrnes Company accumulated the following data concerning a mixed cost, using units produced as the activity level. Month Units produced Total cost $14,740 $13,250 March 9,800 8,500 April May 7,000 7,600 8,100 $11,100 $12,000 $12,460 June July a. Compute the variable-cost and fixed cost elements using the high-low method. b. Using the information from your answer to part (a), write the cost formula. c. Estimate the total cost if the company produces 8,000 units.
Exercise 16-17 (Algo) Weighted average: Production cost report LO P2 Oslo Company produces large quantities of a standardized product. The following information is available for the first production department for May. Prepare a production cost report for this process using the weighted average method. (Round "Cost per EUP" to 2 decimal places.) Direct MaterialsConversion Percent Percent Units Complete Complete Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory 6,300 23,500 22,200 7,600 100% 40% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion $ 5,258 11,568 $ 16,826 401,590 497,192 898,782 $ 915,608 Total costs to account for X Answer is not complete. OSLO COMPANY-First Department Production Cost Report – Weighted Average Method For Month Ended May 31 Unit reconciliation: Units to account for: Beginning work in process Units started this period…
Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Manufacturing overhead in the plant has three main functions: supervision, setup labor, and Incoming material Inspection. Data on manufacturing overhead for a representative quarter follow: $ 288,750 336,000 241,500 $ 866,250 Standard 14,000 a. Using current costing system b. Using proposed ABC system 50 $30 50 Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places. S S Answer is complete but not entirely correct. Premium 3,500 25 $64 75 Unit cost Standard 120.00 X S 117.67 X S…
Weighted Average Method, Unit Cost, Valuing Inventories Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed Units in EWIP X Fraction complete (36,000 X 60%) Equivalent units of output June's costs to account for are as follows: BWIP (10,000 units, 80% complete) Materials Conversion costs Total Required: 89,000 21,600 110,600 $50,000 134,000 61,000 Cost of ending work in process Cost of the goods transferred out $245,000 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent. per unit $ 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in intermediate calculations and final answers to the nearest dollar.
PROBLEM 16: Cost of Production Report Spiderman Corp. has two departments. The following are the data of the two departments. Quantity Beginning WIP October 1 Incomplete as to materia Complete as to conversion cost Departmant 1 32,500 Department 2 22,500 30% 40% 20% 75% Units started in October Units Completed in October Ending WIP October 31 Complete as to material Incomplete as to conversion cost 120,000 112,500 27,500 60% 0% 80% 60% Costs Beginning WIP Transferred in 287,500 120,000 42,500 Materials 200,000 187,500 Conversion Current Period Transferred in Materials Conversion 875,000 500,000 125,000 300,000 Required: Compute the ending inventory costs for the two departments. • Using Weighted method a. Compute the EUP of the two departments. b. Compute the unit cost of the two departments. c. Compute the costs transferred to out the two departments. d. Compute the ending inventory costs for the two departments.
Weighted Average Method, Unit Cost, Valuing Inventories Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed 53,400 Units in EWIP X Fraction complete (36,000 X 60%) 21,600 Equivalent units of output 75,000 June's costs to account for are as follows: BWIP (10,000 units, 80% complete) $50,000 Materials 90,000 Conversion costs 34,000 Total $174,000 Required: 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.$ per unit 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round your answers to the nearest dollar. Cost of ending work in process $ Cost of the goods transferred out $ 3. Cassien had just finished implementing a series of measures designed to reduce the unit cost to $2.00 and was assured that this had…
Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…
Weighted Average Method, Unit Cost, Valuing Inventories Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed 96,000 Units in EWIP X Fraction complete (36,000 X 60%) 21,600 Equivalent units of output 117,600 June's costs to account for are as follows: BWIP (10,000 units, 80% complete) $50,000 Materials 150,000 Conversion costs 44,000 Total $244,000 Required: 1. Calculate the unit cost for June using the weighted average method. Round your answer to the nearest cent.$ per unit 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. If required, round unit cost to the nearest cent in intermediate calculations and final answers to the nearest dollar. Cost of ending work in process $ Cost of the goods transferred out $ 3. Cassien had just finished implementing a series of measures designed…
QUESTION 6 Your company currently produces a range of three products, D, E and F to which the following details relate for Period 2. Production (units) Material cost per unit Labour hours per unit Machine hours per unit D 1,500 RM 18 Set-up costs Handling costs Machining costs Inspection costs 1 3 Labour costs are RM 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analysed as follows: RM 327,250 187,000 140,250 280,500 935,000 E 2,500 RM 10 3 2 D 90 16 180 F 14,000 RM 20 2 6 (a) Calculate the cost per unit for each product using conventional methods. The introduction of an ABC is being considered and to that end the following volume of activities have been identified with the current output levels. E 138 28 216 F 576 116 804 Number of set-ups Number of material issues Number of inspections (b) Calculate the cost per unit for each product using the ABC approach. (c)…

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