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Funtime Inc. makes small toys in a one-department production process. Beginning

ID: 2388776 • Letter: F

Question

Funtime Inc. makes small toys in a one-department production process.

Beginning Inventory: 15,000 toys (60% complete to labor; 75% complete as to overhead)
Started into production: plastic for 620,000 toys
Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60% complete as to overhead)

a) Compute the EUP for direct material; direct labor; and overhead using weighted average process costing. (template for answer is below)



Beginning WIP inventory                          ?

Started                                                   ?

To account for                                         635,000

 

Beginning WIP inventory                        ?

Started and completed                          ?

Ending WIP                                            ?

Accounted for                                        635,000


                                         Units     DM         DL         OH
Beginning WIP inventory     ?            ?            ?          ?
Started & completed          ?            ?            ?          ?
Ending WIP inventory          ?           ?             ?         ?
Equivalent units          635,000    635,000  618,490  624,840

Explanation / Answer

Units

Beginning WIP inventory

15,000

Units started

620,000

Ending WIP

25,400

Units started and completed

660,400

Units

DM

DL       

OH

Beginning WIP inventory    

609,600

609,600

609,600

25,400 X 100%    

25,400

25,400 X 35%

8,890

25,400 X 60%

15,240

Equivalent units         

635,000  

618,490

624,840

Units

Beginning WIP inventory

15,000

Units started

620,000

Ending WIP

25,400

Units started and completed

660,400