The assembly division of Stiles Watches,Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Physical Flow of Production Units Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Equivalent Units Direct Conversion Materials Costs 1: Data Table Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1)a 82 $549,300 $96,550 Started in May 2017 505 Completed during May 2017 467 Ending work in process (May 31)b 120 Total costs added during May 2017 $3,235,000 $1,405,000 aDegree of completion: direct materials, 80%; conversion costs, 35%. bDegree of completion: direct materials, 55%; conversion costs, 35%.
The assembly division of Stiles Watches,Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017: Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Physical Flow of Production Units Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Equivalent Units Direct Conversion Materials Costs 1: Data Table Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1)a 82 $549,300 $96,550 Started in May 2017 505 Completed during May 2017 467 Ending work in process (May 31)b 120 Total costs added during May 2017 $3,235,000 $1,405,000 aDegree of completion: direct materials, 80%; conversion costs, 35%. bDegree of completion: direct materials, 55%; conversion costs, 35%.
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 16E: Cost of production report The debits to Work in ProcessRoasting Department for Morning Brew Coffee...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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The assembly division of Stiles Watches,Inc. uses the weighted-average method of process costing . Consider the following data for the month of May 2017:
Requirement
Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
Enter the physical units first, then calculate the equivalent units.
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Physical
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Flow of Production
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Units
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Work in process beginning
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Started during current period
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To account for
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Completed and transferred out during current period
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Work in process, ending
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Accounted for
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Equivalent units of work done to date
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Equivalent Units
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Direct
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Conversion
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Materials
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Costs
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1: Data Table
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Physical Units
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Direct
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Conversion
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(Watches)
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Materials
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Costs
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Beginning work in process (May 1)a
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82
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$549,300
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$96,550
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Started in May 2017
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505
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Completed during May 2017
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467
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Ending work in process (May 31)b
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120
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Total costs added during May 2017
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$3,235,000
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$1,405,000
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aDegree of completion: direct materials, 80%; conversion costs, 35%.
bDegree of completion: direct materials, 55%; conversion costs, 35%.
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