Concept explainers
FIFO method, assigning costs.
- 1. Do Exercise 17-29 using the FIFO method.
Required
- 2. ZanyBrainy’s management seeks to have a more consistent cost per equivalent unit. Which method of
process costing should the company choose and why?
17-29 Weighted-average method, assigning costs. ZanyBrainy Corporation makes interlocking children’s blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. ZanyBrainy uses the weighted-average method of process costing. The following information for October 2017 is available.
a Degree of completion: direct materials, 100%; conversion costs, 80%.
b Degree of completion: direct materials, 100%; conversion costs, 30%.
Total Costs for October 2017
Work in process, beginning | ||
Direct materials | $ 5,760 | |
Conversion costs | 14,825 | $ 20,585 |
Direct materials added during October | 25,440 | |
Conversion costs added during October | 58,625 | |
Total costs to account for | $104,650 |
- 1. Calculate the cost per equivalent unit for direct materials and conversion costs.
Required
- 2. Summarize the total costs to account for and assign them to units completed (and transferred out) and to units in ending work in process.
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Chapter 17 Solutions
EBK HORNGREN'S COST ACCOUNTING
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