PROBLEM I: (36 POINTS) Erin Company\'s inventory at December 1, and the costs ch

Question

PROBLEM I: (36 POINTS) Erin Company's inventory at December 1, and the costs charged to Work in Process-Department B during December are as 1,200 units, 40% completed From Department A, 26,000 units Direct labor Factory overhead 47,800 845, 312 176,770 During December all direct materials are transferred from Department A, the units in process at December 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units which were 70% completed as to conversion costs. All materials are added at the beginning of the process REQUIREMENT . 1: Prepare a cost of production report for December using the FIFO Method REQUIREMENT 82 Prepare a cost of production report for December using the Weighted-Average Method

Explanation / Answer

Cost of production report for December using the FIFO method Equivalent Units Units charged to production Whole Units Direct Materials Conversion Total Beginning WIP 1200 (+) Transferred in 26000 Total Units accounted for 27200 Units to be assigned cost Beginning WIP 1200 0 720 (+) Started and Completed 25000 25000 25000 Tranferred out 26200 25000 25720 (+) Ending WIP 1000 1000 700 Total units to be assigned cost 27200 26000 26420 Cost per equivalent unit Beginning WIP                              -                             -                           -   (+) Incurred this month $845,000.00 $488,770.00 $1,333,770.00 Total Costs $845,000.00 $488,770.00 $1,333,770.00 (/) Total Equivalent units 26000 26420 Cost per equivalent unit $32.50 $18.50 Cost allocated to completed and partially completed units Beginning WIP $39,000.00 $8,800.00 $47,800.00 To complete WIP $13,320.00 $13,320.00 (+) Started and Completed $812,500.00 $462,500.00 $1,275,000.00 Total cost transferred out $851,500.00 $484,620.00 $1,336,120.00 (+) Ending WIP $32,500.00 $12,950.00 $45,450.00 Total Cost assigned $884,000.00 $497,570.00 $1,381,570.00 Cost of production report for December using the Weighted average method Equivalent Units Units charged to production Whole Units Direct Materials Conversion Total Beginning WIP 1200 (+) Transferred in 26000 Total Units accounted for 27200 Units to be assigned cost Ending WIP 1000 1000 700 Completed and transferred out 26200 26200 26200 Total units to be assigned cost 27200 27200 26900 Cost per equivalent unit Beginning WIP $39,000.00 $8,800.00 $47,800.00 (+) Incurred this month $845,000.00 $488,770.00 $1,333,770.00 Total Costs $884,000.00 $497,570.00 $1,381,570.00 (/) Total Equivalent units 27200 26900 Cost per equivalent unit $32.50 $18.50 Cost allocated to completed and partially completed units Total cost transferred out $851,500.00 $484,622.08 $1,336,122.08 (+) Ending WIP $32,500.00 $12,947.92 $45,447.92 Total Cost assigned $884,000.00 $497,570.00 $1,381,570.00

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