Rudy Company employs process cost system, using Weighted Average Costing system. A unit ofproduct passes through two departments: Assembly and Finishing before it is complete. Informationregarding Assembly Department follow:Work in Process, Aug 1Spoiled UnitsStarted in production10,000 units7,50065,000Transferred Out60,000Raw materials are added at the beginning of processing in the Assembly department withoutchanging the number of units being processed. Work in Process on August 1 was 90% complete as toconversion while 80% converted on August 31. In the Assembly Department, inspection takes place whenthe units are 75% converted. The company Usually experienced a 5% loss based on the completed units.Cost data for the month of August follow:MaterialsLaborOverheadWork in Process, Beg81,00066,00071,250Current Cost279,000220,500286,875What is the total cost of units transferred-out and total cost of work in process, end?

Name: Rudy Company employs process cost system, using Weighted Average Cost
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Description: Rudy Company employs process cost system, using Weighted Average Costing system. A unit ofproduct passes through two departments: Assembly and Finishing before it is complete. Informationregarding Assembly Department follow:Work in Process, Aug 1Spo

Solution: Calculation of Ending WIP: Formulation:

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Rudy Company employs process cost system, using Weighted Average Costing system. A unit of product passes through two departments: Assembly and Finishing before it is complete. Information regarding Assembly Department follow:

Rudy Company employs process cost system, using Weighted Average Costing system. A unit of product passes through two departments: Assembly and Finishing before it is complete. Information regarding Assembly Department follow:

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 9E: A company manufactures a liquid product called Crystal. The basic ingredients are put into process...

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K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
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Conte Chemical Co. uses the weighted average cost method. All materials are added at the start of the production process. Labor and overhead are added evenly at the same rate throughout the process. Contes records indicate the following data for May: Ending work in process, on May 31, is 75% completed as to labor and factory overhead. Make the following calculations: a. Equivalent units for direct materials b. Equivalent units for labor and overhead (Hint: first determine the ending units in work in process.)
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A company manufactures a liquid product called Crystal. The basic ingredients are put into process in Department 1. In Department 2, other materials are added that increase the number of units being processed by 50%. The factory has only two departments. Calculate the following for each department: (a) unit cost for the month for materials, labor, and factory overhead, (b) cost of the units transferred, and (c) cost of the ending work in process.
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