Equivalent Units and Product Cost Report-Weighted Average Method in its first month's operations. Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units 1554,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with resport to material but only 25% complete with respect to conversion costs Assuming Aired uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following a. The equivalent units of materials and conversion costs. a. The cost per equivalent unit of materials and conversion costs The total cost assigned to the units transferred out d. The total cost assigned to the ending inventory. e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate tal Seng entory Allred Company Department 1 Flow of Units and Equivalent Units Calculation Total Costs Accor Mala Conn Cost of Good Manufact Indegary Mala Con Cost af td ventury work dana Product Cast Report $ Equivalent Units Direct to Work Materials Done Direc Materials Conversion Cas Conversion Cases
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.
![Equivalent Units and Product Cost Report-Weighted Average Method
In its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs
Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:
a. The equivalent units of materials and conversion costs.
b. The cost per equivalent unit of materials and conversion costs
c. The total cost assigned to the units transferred out
d. The total cost assigned to the ending inventory
e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.
Round average cost per equivalent unit to two decimal places, if applicable.
Round other answers to the nearest whole number, when appropriate.
Completartransferred
Ending Inventory
Total
Allred Company Department 1
Flow of Units and Equivalent Units Calculation
Equivalent Units
Direct % Work
Materials Done
Beginning Inventory
Curtere
Total Costs to Account for
Total Equivalent Units
Average cost/Equivalent unit
Complete/ Transferred:
Direct Material
Conversion costs
Cost of Ending Inventory
Total Costs Allocated
Product Cost Report
S
$
S
Conversion costs
Cost of Goods Manufactured $
Ending Inventory:
Direct Material
$
% Work
done
S
Direct
Materials
S
$
$
b.
Conversion
Costs
Conversion
Costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c9bc1b6-70e9-442a-80c9-63b35a527793%2Fc1481a9e-deb9-4e89-b417-b73edab1da36%2F939u11_processed.jpeg&w=3840&q=75)
![Equivalent Units and Product Cost Report-Weighted Average Method
In its first month's operations, Allred Company's Department 1 incurred charges of $2,160,000 for direct materials (90,000 units), $594,000 for direct labor, and $1,044,000 for manufacturing overhead. At month-end, 79,200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs
Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following:
a. The equivalent units of materials and conversion costs.
b. The cost per equivalent unit of materials and conversion costs
c. The total cost assigned to the units transferred out
d. The total cost assigned to the ending inventory
e. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for.
Round average cost per equivalent unit to two decimal places, if applicable.
Round other answers to the nearest whole number, when appropriate.
Completartransferred
Ending Inventory
Total
Allred Company Department 1
Flow of Units and Equivalent Units Calculation
Equivalent Units
Direct % Work
Materials Done
Beginning Inventory
Curtere
Total Costs to Account for
Total Equivalent Units
Average cost/Equivalent unit
Complete/ Transferred:
Direct Material
Conversion costs
Cost of Ending Inventory
Total Costs Allocated
Product Cost Report
S
$
S
Conversion costs
Cost of Goods Manufactured $
Ending Inventory:
Direct Material
$
% Work
done
S
Direct
Materials
S
$
$
b.
Conversion
Costs
Conversion
Costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c9bc1b6-70e9-442a-80c9-63b35a527793%2Fc1481a9e-deb9-4e89-b417-b73edab1da36%2Ffx37bhbl_processed.jpeg&w=3840&q=75)
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What is the beginning inventory? You left it blank.
Direct Materials | Conversion costs | |||
Beginning Inventory | ? | ? | ? | |
Add: Current costs | 3798000 | 2160000 | 1638000 | ($594000+$1044000) |
Total costs to account for (A) | 3798000 | 2160000 | 1638000 |
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