Make sure to show all work! Thanks! Problem 1: Lovely Butter (Process Costin (1.

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Make sure to show all work!

Thanks!

Problem 1: Lovely Butter (Process Costin (1.5 points) Lovely Butter produces peanut butter using a two-stage process: grinding and packaging. The following information is available in the packaging department for the month of August: Beginning WIP (units) 150 - Costs transferred from grinding $450 department Cost of materials in packaging (75% completed) Conversion costs (50% completed) $2,000 - $1,000 $3,450 750 200 Units transferred in August from grinding department Ending work in process (units) Costs transferred from grinding in August Conversion costs incurred in August Material costs incurred in August $2,625 $5,500 $12,000 The ending WIP was 50% complete w.r.t materials and 25% complete w.r.t conversion costs. Compute costs transferred out and costs in ending WIP for the packaging department using the weighted average method

Explanation / Answer

solution:-

= 150 + 750

= 900

= 200 * 100%

=200

= 200 * 50%

= 100

= 200 * 25%

= 50

= 700 + 200

= 900

= 700 + 100

= 800

= 700 + 50

= 750

= 450 + 2,000 + 1,000

= $3,450

= 2,625 + 12,000 +5,500

= $20,125

=( 450 + 2,625 ) / 900

= $3.4166

= (2000 + 12,000) / 800

= $17.5

= (1,000 + 5,500) / 750

= $8.666

= $3.4166 + $17.5 + $8.666

= $29.58

Total

= 700 * 29.58

= $20712.93

= 200 * 3.4166

= $683.3

= 100 * 17.5

= $1750

= 50 * 8.666

= $433.3

= 683.33 + 1750+ 433.3

= $2,866.63

Final answer;

Units Beggining WIP 150 Transferred in 750 units to be accounted = Beggining WIP + Transferred in

= 150 + 750

= 900

Transferred out 700 Ending WIP 200 Units accounted   900

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