Question 5 : The motor cars company manufactures a product that is processed in two departments: Department A and Department B. In Department A, materials are added at the beginning of the process, In Department B, materials are added at the ending of the process. In both A and B conversion costs are incurred unifomly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for November: Item Units Conversion Transferre Direct d- In costs Materials Costs Work in process, beginning inventory(July. 1) Degree of completion, beginning work in process Started during July Completed and transferred out during July Work in process, ending inventory(July. 30) Degree of completion, ending work in process Cost Data : Cost of Work in process, beginning inventory Costs added during July Required : 1. Calculate the Department's B equivalent units of production for materials and conversion in July using weighted average method. 2. Summarize total costs to account for and assign total costs to units completed and transferred out, and to units in ending work in process. 8,000 100% 50% 28,000 33,000 3,000 100% 50% $45,320 $159,880 | $37,950 $ 16,800 $128,100

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 10P: Mt. Palomar Manufacturing Co. uses a process cost system. Its manufacturing operation is carried on...
icon
Related questions
icon
Concept explainers
Topic Video
Question
%V9 lI.
UUE
o homework- m...
->
Question 5 :
The motor cars company manufactures a product that is processed in two
departments: Department A and Department B. In Department A, materials are added at the
beginning of the process, In Department B, materials are added at the ending of the process. In
both A and B conversion costs are incurred uniformly throughout the process. As work is
completed, it is transferred out. The following table summarizes the production activity and costs
for November:
Item
Units
Transferre
Direct
Conversion
d- In costs
Materials
Costs
Work in process, beginning inventory(July. 1)
Degree of completion, beginning work in process
Started during July
Completed and transferred out during July
Work in process, ending inventory(July. 30)
Degree of completion, ending work in process
Cost Data :
Cost of Work in process, beginning inventory
Costs added during July
Required :
1. Calculate the Department's B equivalent units of production for materials and conversion
in July using weighted average method.
2. Summarize total costs to account for and assign total costs to units completed and
transferred out, and to units in ending work in process.
8,000
100%
50%
28.000
33,000
3.000
100%
50%
$45,320
$159,880
$16,800
$128,100
$37,950
Question 4: The motor cars company manufactures a product that is processed in two departments
Department A and Department B. In Department A, materials are added at the beginning of the process
conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred
out. The following table summarizes the production activity and costs for November:
Department A
Beginning inventories:
Physical units
Costs:
Transferred in
Direct materials
5,000
$ 10,000
$ 6,900
Conversion costs
Current production:
Units started
25,000
28,000
Units transferred out
Costs:
Transferred in
Direct materials
$57,800
Conversion costs
$95,220
Percentage completion:
Beginning inventory
Ending inventory
40%
80%
Required :
1. Calculate the Department's A equivalent units of production for materials and conversion
in July using FIFO method.
2. Summarize total costs to account for and assign total costs to units completed and
transferred out, and to units in ending work in process.
Transcribed Image Text:%V9 lI. UUE o homework- m... -> Question 5 : The motor cars company manufactures a product that is processed in two departments: Department A and Department B. In Department A, materials are added at the beginning of the process, In Department B, materials are added at the ending of the process. In both A and B conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for November: Item Units Transferre Direct Conversion d- In costs Materials Costs Work in process, beginning inventory(July. 1) Degree of completion, beginning work in process Started during July Completed and transferred out during July Work in process, ending inventory(July. 30) Degree of completion, ending work in process Cost Data : Cost of Work in process, beginning inventory Costs added during July Required : 1. Calculate the Department's B equivalent units of production for materials and conversion in July using weighted average method. 2. Summarize total costs to account for and assign total costs to units completed and transferred out, and to units in ending work in process. 8,000 100% 50% 28.000 33,000 3.000 100% 50% $45,320 $159,880 $16,800 $128,100 $37,950 Question 4: The motor cars company manufactures a product that is processed in two departments Department A and Department B. In Department A, materials are added at the beginning of the process conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for November: Department A Beginning inventories: Physical units Costs: Transferred in Direct materials 5,000 $ 10,000 $ 6,900 Conversion costs Current production: Units started 25,000 28,000 Units transferred out Costs: Transferred in Direct materials $57,800 Conversion costs $95,220 Percentage completion: Beginning inventory Ending inventory 40% 80% Required : 1. Calculate the Department's A equivalent units of production for materials and conversion in July using FIFO method. 2. Summarize total costs to account for and assign total costs to units completed and transferred out, and to units in ending work in process.
Expert Solution
steps

Step by step

Solved in 6 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning