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Answer - Process Costing Problem 7

This document summarizes the work-in-process (WIP) for two departments. It provides a quantity and cost schedule showing 55,000 equivalent units produced in Department 1, with 45,000 units transferred to Department 2. Department 2 accounts for 52,000 equivalent units, with 43,000 units transferred out as finished goods. The costs are allocated to each department's WIP using an equivalent units of production weighted average method. Total production costs of $240,800 for Department 1 and $421,825 for Department 2 are fully allocated.

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Emmanuelle Maza
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198 views7 pages

Answer - Process Costing Problem 7

This document summarizes the work-in-process (WIP) for two departments. It provides a quantity and cost schedule showing 55,000 equivalent units produced in Department 1, with 45,000 units transferred to Department 2. Department 2 accounts for 52,000 equivalent units, with 43,000 units transferred out as finished goods. The costs are allocated to each department's WIP using an equivalent units of production weighted average method. Total production costs of $240,800 for Department 1 and $421,825 for Department 2 are fully allocated.

Uploaded by

Emmanuelle Maza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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total cost 10,000 10.000 per 50% unit actual unit 1,000.

00 50% complete
1,000.00

10,000 20 per unit


500
EUP
500.00
WEIGHTED AVERAGE METHOD

COST OF PRODUCTION REPORT


DEPARTMENT 1

QUANTITY SCHEDULE: DM CC
actual unitswork done EUP work done EUP
WIP beg. 5,000
Started in Process 50,000
units to account for 55,000

Transferred out (45,000):


WIP beg. 5,000 100% 5,000 100% 5,000
Started in Process 40,000 100% 40,000 100% 40,000
WIP end 10,000 100% 10,000 75% 7,500
units accounted for 55,000
Equivalent Units of Production 55,000 52,500

COST SCHEDULE:
TOTAL DM DL OH
WIP beg. Cost 30,800 12,000 8,500 10,300
current period cost 210,000 65,000 90,000 55,000
cost to account for 240,800 77,000 98,500 65,300
divided by: EUP 55,000 52,500 52,500
cost per EUP 4.5200 1.4000 1.8762 1.2438

ALLOCATION OF COSTS: Tout WIP end


Total (45,000 u) (10,000u)
DM 77,000 63,000 14,000 eup x cost per eup
DL 98,500 84,429 14,071
OH 65,300 55,971 9,329
cost accounted for 240,800 203,400 37,400

or

transferred out (45,000 u x 4.520) 203,400


WIP end
DM 10,000 x 1.4 14,000
DL 7500 x 1.8762 14,071
OH 7500x 1.2438 9,329 37,400
total cost accounted for 240,800
WIP - Department 1 WIP - Depart
beg. 30,800 to dept. 2 203,400 beg
current cos 210,000 from D1
end 37,400 current
end

a WIP- Dept. 1 210,000 WIP- D2


materials 65,000
factory payroll 90,000
FO, applied 55,000
(to record current production cost)
FG inventory
b. WIP - Dept. 2 203,400
WIP - Dept. 1 203,400
(to record the transfer of 45,000 units to Dept. 2)
DEPARTMENT 2

QUANTITY SCHEDULE: Trans. In DM CC


actual units EUP work done EUP work done
WIP beg. 7,000
Rec'd from Dept. 1 45,000
units to account for 52,000

Transferred out (43,000):


WIP beg. 7,000 7,000 100% 7,000 100%
Started in Process 36,000 36,000 100% 36,000 100%
WIP end 9,000 9,000 100% 9,000 50%
units accounted for 52,000
Equivalent Units of Production 52,000 52,000

COST SCHEDULE:
TOTAL Trans. In DM DL OH
WIP beg. Cost 63,425 28,000 14,800 9,200 11,425
current period cost 358,400 203,400 45,000 70,000 40,000
cost to account for 421,825 231,400 59,800 79,200 51,425
divided by: EUP 52,000 52,000 47,500 47,500
cost per EUP 8.3500 4.45000 1.15000 1.66737 1.08263

ALLOCATION OF COST
transferred out (43,000 u x 8.35) 359,050
WIP end:
Tin 9,000 x 4.45 40,050
DM 9,000 x 1.15 10,350
DL 4,500 x 1.6673 7,503
OH 4500 x 1.08263 4,872 62,775
total cost accounted for 421,825
WIP - Department 2
63,425 to FG 359,050
203,400
155,000
62,775

155,000
materials 45,000
factory payroll 70000
FO, applied 40000

FG inventory 359,050
WIP- D2 359,050
EUP

7,000
36,000
4,500

47,500

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