close solutoin list

Equivalent units of production: average cost method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department Work in process, July 1 500 units, 50% completed 350 units. 30% completed Completed and transferred to next processing department during July 11,400 units 10,950 units Work in process, July 31 700 units, 55% completed 800 units, 25% completed Each department uses the average cost method. a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 20, Problem 20.25EX
Textbook Problem

Equivalent units of production: average cost method

Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows:

  Drawing Department Winding Department
Work in process, July 1 500 units, 50% completed 350 units. 30% completed
Completed and transferred to next processing department during July 11,400 units 10,950 units
Work in process, July 31 700 units, 55% completed 800 units, 25% completed

Each department uses the average cost method.

a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.

Expert Solution

(a)

To determine

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

To Determine: The number of whole units to be accounted for drawing department.

Explanation of Solution

Calculate the number of whole units to be accounted for drawing department as shown below:

Total accounted for = Units transferred out +Ending work in process inventory=11,400units +700units=12,100units

Total accounted for is calculated by adding units transferred out and ending work in process inventory. Therefore, total accounted for 12,100 units.

Calculate the units to be assigned costs for drawing department as shown below:

Assigned costs = Units transferred out +Ending work in process inventory=11,400unitsx

Expert Solution

(b)

To determine

  • The number of whole units to be accounted for winding department.
  • The units to be assigned costs for winding department.
  • The number of equivalent units for production for the period of winding department.

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 20 Solutions

Accounting
Show all chapter solutions
Ch. 20 - Job order versus process costing Which of the...Ch. 20 - Job order versus process costing Which of the...Ch. 20 - Units to be assigned costs Eve Cosmetics Company...Ch. 20 - Units to be assigned costs Keystone Steel Company...Ch. 20 - Equivalent units of materials cost The Filling...Ch. 20 - Equivalent units of materials cost The Rolling...Ch. 20 - Equivalent units of conversion costs The Filling...Ch. 20 - Equivalent units of conversion costs The Rolling...Ch. 20 - Cost per equivalent unit The cost of direct...Ch. 20 - Cost per equivalent unit The cast of direct...Ch. 20 - Cost of units transferred out and ending work in...Ch. 20 - Cost of units transferred out and ending work in...Ch. 20 - Process cost journal entries The cost of materials...Ch. 20 - Process cost journal entries The cost of materials...Ch. 20 - Using process costs for decision making The costs...Ch. 20 - Using process costs for decision making The costs...Ch. 20 - Entries for materials cost flows in a process cost...Ch. 20 - Flowchart of accounts related to service and...Ch. 20 - Entries for flow of factory costs for process cost...Ch. 20 - Factory overhead rate, entry for applying factory...Ch. 20 - Equivalent units of production The Converting...Ch. 20 - Equivalent units of production Units of production...Ch. 20 - Equivalent units of production The following...Ch. 20 - Costs per equivalent unit a. Based on the data in...Ch. 20 - Equivalent units of production Kellogg Company...Ch. 20 - Costs per equivalent unit Georgia Products Inc....Ch. 20 - Equivalent units of production and related costs...Ch. 20 - Cost of units completed and in process a. Based on...Ch. 20 - Errors in equivalent unit computation Napco...Ch. 20 - Cost per equivalent unit The following information...Ch. 20 - Costs per equivalent unit and production costs...Ch. 20 - Cost of production report The debits to Work in...Ch. 20 - Cost of production report The Culling Department...Ch. 20 - Cost of production and journal entries AccuBlade...Ch. 20 - Cost of production and journal entries Lighthouse...Ch. 20 - Process costing for a service company Madison...Ch. 20 - Decision making Mystic Bottling Company bottles...Ch. 20 - Decision making Fix Paper Inc. produces...Ch. 20 - Lean manufacturing The following are some quotes...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production: average cost...Ch. 20 - Equivalent units of production and related costs...Ch. 20 - Cost per equivalent unit: average cost method The...Ch. 20 - Cost of production report: average cost method The...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Entries for process cost system Pori Ormond Carpel...Ch. 20 - Cost of production report Arabica Highland Coffee...Ch. 20 - Equivalent units and related costs; cost of...Ch. 20 - Work in process account data for two months; cost...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Entries for process cost system Preston Grover...Ch. 20 - Cost of production report Bavarian Chocolate...Ch. 20 - Equivalent units and related costs; cost of...Ch. 20 - Work in process account data for two months; cost...Ch. 20 - Cost of production report: average cost method...Ch. 20 - Ethics in Action Assume that you are the division...Ch. 20 - Communication Jamarcus Bradshaw, plant, manager of...Ch. 20 - Accounting for materials costs In papermaking...Ch. 20 - Analyzing unit costs Midstate Containers Inc....

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What are the techniques used to forecast human resources supply?

Foundations of Business (MindTap Course List)

How might technology shape business report formats and their delivery in the future?

Essentials of Business Communication (MindTap Course List)

How are inflation and unemployment related in the short run?

Principles of Economics (MindTap Course List)

How are inflation and unemployment related in the short run?

Essentials of Economics (MindTap Course List)

NONANNUAL COMPOUNDING a. You plan to make five deposits of 1,000 each, one every 6 months, with the first payme...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)