• No results found

BRIEF EXERCISES Brief Exercise

In document Chapter-4.docx (Page 32-38)

Brief Exercise 149

Apoly Manufacturing Company has the following production data for January.

Ending Work in Process Beginning Work in Process Units Started in Production Units % Complete as to Conversion Cost -0- 3,000 125 25%

Calculate the physical units for January using the weighted average method.

Solution Brief Exercise 149

Beginning work in process -0- Started into production 3,000 Total units to be accounted for 3,000

Transferred out 2,875

Ending work in process 125 Total units accounted for 3,000

Brief Exercise 150

Sandusky Widget Company has the following production data for March.

Ending Work in Process Month Work in ProcessBeginning Transferred OutUnits Units % Complete as toConversion Cost

March 500 7,200 300 30%

Calculate the physical units for March using the weighted average method.

Solution Brief Exercise 150

Beginning work in process 500 Started into production 7,000 Total units to be accounted for 7,500

Transferred out 7,200

Ending work in process 300 Total units accounted for 7,500

Brief Exercise 151

General Company had total material costs totalling $105,000 and total conversion costs of $37,000. Equivalent units of production are 12,000 for materials and 5,000 for conversion costs. Calculate the unit costs for materials, conversion costs, and total manufacturing costs using the weighted average method.

Unit costs Materials Conversion Costs Total

Costs $105,000 $37,000 $142,000

Equivalent units 12,000 5,000

Unit costs $ 8.75 $ 7.40 $ 16.15

Brief Exercise 152

Sequal Company has the following production data for June: units transferred out 73,000, and ending work in process 9,000 units that are 100% complete for materials and 20% complete for conversion costs. Unit materials cost are $7.50 and unit conversion cost is $16. Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Solution Brief Exercise 152

Work in process, June 30

Materials (9,000 × $7.50) $67,500

Conversion costs (9,000 × 20% × $16) 28,800 Total cost of work in process $96,300

Units transferred out (73,000 x $23.50) $1,715,500

*Brief Exercise 153

Tomlinson Company has the following production data for May:

 Beginning work in process, 0 units

 Units started, 94,000

 Ending work in process, 17,000 units that are 100% complete for materials and 50% complete for conversion costs

 Unit materials cost, $6

 Unit conversion cost, $12

 Total costs to be assigned, $618,000

Tomlinson uses the FIFO method to calculate equivalent units. Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Solution Brief Exercise 153

Work in process, May 31

Materials (17,000 × $6) $102,000

Conversion costs (17,000 × 50% × $12) 102,000 Total cost of work in process $204,000

Units transferred out (77,000 x $18) $1,386,000

Brief Exercise 154

Peter Puck Company has the following production data for June:

 Beginning work in process, 0 units

 Units transferred out, 87,000

Materials are added only at the beginning of the process. Calculate equivalent units of production for both materials and conversion costs using the weighted average method.

Solution Brief Exercise 154

Equivalent Units QUANTITIES Physical Units Materials Conversion Costs Units to be accounted for

Work in process, June 1 0 Started into production 110,000

Total units 110,000

Units accounted for

Transferred out 87,000 87,000 87,000

Work in process, June 30 23,000 23,000 9,200 (23,000 × 40%)

Total units 110,000 110,000 96,200

Brief Exercise 155

Kels Company has the following production data for April:

 Beginning work in process, 4,000 units

 Units transferred out, 85,000

 Units in ending work in process, 12,000, which are 90% complete for conversion costs

Materials are added only at the beginning of the process. Calculate equivalent units of production for both materials and conversion costs using the weighted average method.

Solution Brief Exercise 155

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs Units to be accounted for

Work in process, April 1 4,000 Started into production 93,000

Total units 97,000

Units accounted for

Transferred out 85,000 85,000 85,000

Work in process, April 30 12,000 12,000 10,800 (12,000 × 90%)

Total units 97,000 97,000 95,800

*Brief Exercise 156

Tip Top Painting Company has the following production data for March:

 Beginning work in process, 2,000 units, which are 30% complete for conversion costs

 Units transferred out, 42,000

 Units in ending work in process, 6,000, which are 80% complete for conversion costs

Materials are added only at the beginning of the process. Calculate equivalent units of production for both materials and conversion costs using the FIFO method.

Solution Brief Exercise 156

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs Units to be accounted for

Work in process, March 1 2,000 Started into production 46,000

Total units 48,000

Units accounted for

Work in process, March 1 2,000 0 1,400 (2,000 x 70%)

Transferred out 40,000 40,000 40,000

Work in process, March 31 6,000 6,000 4,800 (6,000 × 80%)

Total units 48,000 46,000 46,200

Brief Exercise 157

White Supplies’ total material costs are $75,000 and total conversion costs are $37,000. Equivalent units of production for materials are 18,750, and 4,625 for conversion costs. Calculate the unit costs for materials, conversion costs, and total manufacturing costs for the month using the weighted average method.

Solution Brief Exercise 157

COSTS

Unit costs Materials Conversion Costs Total

Costs incurred $75,000 $37,000 $112,000

Equivalent units 18,750 4,625

Unit costs $ 4.00 $ 8.00 $ 12.00

Brief Exercise 158

Dirt Cleaners, Inc. has the following production data for January: Transferred out 50,000 units

Ending work in process 6,000 units

The units in ending work in process are 100% complete for materials and 60% complete for conversion costs. There is no beginning work in process. Materials cost is $10 per unit and conversion costs are $11 per unit. Determine the costs to be assigned to the units transferred out and the units in ending work in process.

Solution Brief Exercise 158

Cost Reconciliation Schedule Costs accounted for

Transferred out (50,000 × $21.00) $1,050,000 Work in process, June 30

Materials (6,000 × $10) $ 60,000

Conversion costs (3,600* × $11) 39,600 99,600

Total costs $1,149,600

Brief Exercise 159

Production costs chargeable to the Sanding Department in July for Joyful Art are $12,500 for materials, $26,000 for labour, and $10,000 for manufacturing overhead. Equivalent units of production are 25,000 for materials and 18,000 for conversion costs.

Calculate the unit costs for materials and conversion costs.

Solution Brief Exercise 159

COSTS

Unit costs Materials Conversion Costs Total

Costs in July $12,500 $36,000 $48,500

Equivalent units 25,000 18,000

Unit costs $ 0.50 $ 2.00 $ 2.50

Brief Exercise 160

The Kirkland Department of Delta Manufacturing began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 1,000 units that are 100% complete as to materials and 60% complete as to conversion costs.

Calculate the equivalent units of production for materials and conversion costs for the month of December using the weighted average method.

Solution Brief Exercise 160

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs Units to be accounted for

Work in process, December 1 4,000 Started into production 7,000

Total units 11,000

Units accounted for

Transferred out 10,000 10,000 10,000

Work in process, December 31 1,000 1,000 600 (1,000 × 60%)

Total units 11,000 11,000 10,600

*Brief Exercise 161

The Kirkland Department of Delta Manufacturing began the month of December with beginning work in process of 4,000 units that are 100% complete as to materials and 20% complete as to conversion costs. Units transferred out are 10,000 units. Ending work in process contains 1,000 units that are 100% complete as to materials and 60% complete as to conversion costs.

Calculate the equivalent units of production for materials and conversion costs for the month of December using the FIFO method.

Solution Brief Exercise 161

QUANTITIES Physical Units Materials Conversion Costs Units to be accounted for

Work in process, December 1 4,000 Started into production 7,000

Total units 11,000

Units accounted for

Work in process, December 1 4,000 0 3,200 (4,000 x 80%)

Transferred out 6,000 6,000 6,000

Work in process, December 31 1,000 1,000 600 (1,000 × 60%)

Total units 11,000 7,000 9,800

Brief Exercise 162

Pinto Products makes suspension components for a large car manufacturer. In its assembly department for the month of September, the following information about its suspension systems is available:

Percent Complete

# of units Materials Conversion WIP, September 1 5,000 65% 30% Started into production 65,000

WIP, September 30 3,000 35% 25%

Calculate the equivalent units of production using the weighted-average method.

Solution Brief Exercise 162

67,000 (units transferred out) + 1,050 (ending inventory) = 68,050

Brief Exercise 163

Using the information about Pinto Products above, calculate the equivalent units of production using the FIFO method.

Solution Brief Exercise 163

Equivalent units to complete Opening Inventory + Units started and completed + Equivalent units in ending inventory:

In document Chapter-4.docx (Page 32-38)

Related documents