Cost accounting
Week 2 Homework Problems
Problem 1:
Kali Manufacturing Inc. began the year with the following.
|
Units | ||
|
Beginning work-in-process |
20,000 |
20% complete |
|
Transferred to finished goods |
60,000 | |
|
Ending inventory |
10,000 |
70% complete |
Materials are added at the beginning of the process
Required
Calculate the equivalent units for
- material costs under the weighted average process cost method;
- conversion costs under the weighted average process cost method;
- material costs under the FIFO process cost method; and
- conversion costs under the FIFO process cost method.
Problem 2:
Glass Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for the current month are as follows.
|
Production Data |
units |
|
In process, beginning of month (20% converted) |
2000 |
|
Started during current month |
8000 |
|
Completed and transferred to finished goods |
5500 |
|
In process, end of month (60% converted) |
4500 |
|
Manufacturing Costs | |
|
Work in process, beginning | |
|
-Materials |
$15,000 |
|
-Conversion |
$6,450 |
|
Production Costs Added | |
|
-Materials |
$54,000 |
|
-Direct labor cost |
$105,000 |
|
-Factory overhead cost |
$36,150 |
Required
Prepare a cost of production report for current month. Use Weighted-Ave process
costing.
-
Rating:
/5
Solution: process costing both solutions