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PROBLEM 4-33 (30 MINUTES) 1. a. Equivalent units: Percentag e of Completio n with Respect Tax to Returns Conversio n (physic al (labor and Equivalent Units units) overhead) Labor Overhea d Returns in process, February 1............ 30 0 20% Returns started in February.............. 900 Total returns to account for........... 1,20 0 Returns completed during February..... 80 0 100% 800 800 Returns in process, February 28........... 4 00 75% 300 300 Total returns accounted for......... 1,20 0 ____ ____ Total equivalent units of activity..... 1,100 1,100 b. Costs per equivalent unit: McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e 5-1

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McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-1 PROBLEM 4-33 (30 MINUTES) 1.a.Equivalent units: Percentage of Completion with Respect Taxto ReturnsConversion (physical(labor andEquivalent Units units)overhead)LaborOverhead Returns in process, February 1 .....30020% Returns started in February ...........900 Total returns to account for ........... 1,200 Returns completed during February ........................800100%800800 Returns in process, February 28 ...400 75%300300 Total returns accounted for ........... 1,200________ Total equivalent units of activity ... 1,1001,100 b.Costs per equivalent unit: Labor Overhead Total Returns in process, February 1 ...................3,5004,0007,500 Costs incurred during February ..................90,00051,000141,000 Total costs to account for ............................93,50055,000148,500 Equivalent units ............................................1,1001,100 Costs per equivalent unit .............................85.0050.00135.00 2.Cost of returns in process on February 28: Labor:equivalent units cost per equivalent unit 300 85.00 .......................................................25,500 Overhead:equivalent units cost per equivalent unit 300 50.00 .......................................................15,000 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-2 Total cost of returns in process on February 28 .........................................40,500 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-3 PROBLEM 4-34 (50 MINUTES) The missing amounts are shown below. A completed production report follows. Units started during January ................................................................................55,000 Units completed and transferred out during January .........................................60,000 Total equivalent units: conversion .......................................................................66,000 Work in process, January 1: conversion .............................................................\$ 110,600 Costs incurred during January: direct material ..................................................400,000 Cost per equivalent unit: conversion ...................................................................14.10 Cost of goods completed and transferred out during January ..........................1,320,000 Cost remaining in ending work-in-process inventory: direct material ..............158,000 PRODUCTION REPORT: CANANDAIGUA CARPET COMPANY Weighted-Average Method Physical Units Percentage of Completion with Respect to Conversion Equivalent Units Direct Material Conversion Work in process, January 1 ............ 25,00025% Units started during January .......... 55,000 Total units to account for ................ 80,000 Units completed and transferred out during January ...................... 60,000 100% 60,000 60,000 Work in process, January 31 .......... 20,00030%20,0006,000 Total units accounted for ................ 80,000__________ Total equivalent units ...................... 80,00066,000 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-4 PROBLEM 4-34 (CONTINUED) Direct Material Conversion Total Work in process, January 1 .............................. \$232,000\$110,600\$342,600 Costs incurred during January .........................400,000820,0001,220,000 Total costs to account for ................................. \$632,000\$930,600\$1,562,600 Equivalent units ................................................. 80,00066,000 Costs per equivalent unit .................................. \$7.90\$14.10\$22.00 *\$7.90 = \$632,000 80,000 \$14.10 = \$930,600 66,000 **\$22.00 = \$7.90 + \$14.10 Cost of goods completed and transferred out during January: ||.|

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\|unit equivalentper costtotal

out d transferreunits of number .............................60,000 \$22.00\$1,320,000 Cost remaining in January 31 work-in-process inventory: Direct material: |||||.|

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\|material direct of unit equivalentper cost

material direct of unitsequivalentof number ................................ 20,000 \$7.90 \$158,000 Conversion: |||||.|

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\|conversionof unit equivalentper cost

conversionof unitsequivalentof number .......................................... 6,000 \$14.10 84,600 Total cost of January 31 work in process ...............................................\$242,600 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-5 Check:Cost of goods completed and transferred out .. \$1,320,000 Cost of January 31 work-in-process inventory .242,600 Total costs accounted for ................................... \$1,562,600 PROBLEM 4-35 (45 MINUTES) 1.PRODUCTION REPORT: MIXING DEPARTMENT (Weighted-Average Method) November 20x5 Percentage of Completion withEquivalent Units PhysicalRespect toDirect UnitsConversionMaterialConversion Work in process, November 1 .......5,000 70% Units started during November ....17,000 Total units to account for ..............22,000 Units completed and transferred out during November ..........16,000100%16,00016,000 Work in process, November 306,00030%6,0001,800 Total units accounted for ..............22,000____ __ ____ Total equivalent units ....................22,00017,800 Direct MaterialConversionTotal Work in process, November 1 .......\$31,600 \$55,220 \$86,820 Costs incurred during November .85,000* 210,000295,000 Total costs to account for .............\$116,600 \$265,220 \$381,820 Equivalent units .............................22,000 17,800 Costs per equivalent unit ..............\$5.30 \$14.90 \$20.20 *\$85,000 = \$16,000 + \$44,000 + (5,000 12,000)(\$60,000) \$210,000 = \$70,000 + (1.50)(\$70,000) + \$35,000 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Managerial Accounting, 8/e5-6 PROBLEM 4-35 (CONTINUED) Cost of goods completed and transferred out during November: ||.|

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\|unit equivalentper costtotal

out d transferreunits of number .............................16,000 \$20.20\$323,200 Cost remaining in November 30 work-in-process inventory Direct material: |||||.|

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\|material direct of unit equivalentper cost

material direct of unitsequivalentof number................................. 6,000 \$5.30\$31,800 Conversion |||||.|

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\|conversionof unit equivalentper cost

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