3. The inventory at May 1 and the costs charged to Work in Process--Department B during May forOlga Company are as follows:Beginning WIP – Dept B, 12,000 units, 60% completedFrom Department A, 55,000 units started this periodDirect materials added$ 62,400115,500523,160Conversion costs incurredDuring May, all direct materials are transferred from Department A, the units in process at May 1 werecompleted, and of the 55,000 units entering the department, all were completed except 6,000 units which were70% completed. Assume inventories are managed by the first-in, first-out method.a) Determine the Cost per Equivalent Units for both Direct Materials and Conversion Costs forthe month of May.b) Determine the total cost of production transferred to Department C and provide the journalentry.c) What is the ending balance in WIP – Dept. B?

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Description: 3. The inventory at May 1 and the costs charged to Work in Process--Department B during May forOlga Company are as follows:Beginning WIP – Dept B, 12,000 units, 60% completedFrom Department A, 55,000 units started this periodDirect materials added$

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3. The inventory at May 1 and the costs charged to Work in Process--Department B Olga Company are as follows: ginning WIP - Dept B, 12,000 units, 60% completed om Department A, 55,000 units started this period rect materials added nversion costs incurred pring May, all direct materials are transferred from Department A, the units in process at mpleted, and of the 55,000 units entering the department, all were completed except 6,00 % completed. Assume inventories are managed by the first-in, first-out method. a) Determine the Cost per Equivalent Units for both Direct Materials and Conve

3. The inventory at May 1 and the costs charged to Work in Process--Department B Olga Company are as follows: ginning WIP - Dept B, 12,000 units, 60% completed om Department A, 55,000 units started this period rect materials added nversion costs incurred pring May, all direct materials are transferred from Department A, the units in process at mpleted, and of the 55,000 units entering the department, all were completed except 6,00 % completed. Assume inventories are managed by the first-in, first-out method. a) Determine the Cost per Equivalent Units for both Direct Materials and Conve

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...

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On December 1, Carmel Valley Production Inc. had a work in process inventory of 1,200 units that were complete as to materials and 50% complete as to labor and overhead. December 1 costs follow: During December the following transactions occurred: a. Purchased materials costing 50,000 on account. b. Placed direct materials costing 49,000 into production. c. Incurred production wages totaling 50,500. d. Incurred overhead costs for December: e. Applied overhead to work in process at a predetermined rate of 125% of direct labor cost. f. Completed and transferred 10,000 units to finished goods. (Hint: You should first compute equivalent units and unit costs. The unit cost should include applied, not actual, factory overhead.) Carmel Valley uses the weighted average cost method. The ending inventory of work in process consisted of 1,000 units that were completed as to materials and 25% complete as to labor and overhead. Required: Prepare the journal entries to record the above December transactions.
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A company has 1,500 units in ending work in process that are 30% complete after transferring out 10,000 units. All materials are added at the beginning of the process. If the cost per unit is $4 for materials and $7 for conversion, what is the cost of units transferred out and in ending work in process inventory using the weighted-average method?
Dublin Brewing Co. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during October: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 13,000 units finished and transferred to stockroom Work in process, end of period, 2,000 units one-half completed Required: Prepare a cost of production summary for October.