Four Seasons Company makes snow blowers. Materials are added at the beginning of
ID: 2412196 • Letter: F
Question
Four Seasons Company makes snow blowers. Materials are added at the beginning of the process and conversion costs are uniformly incurred. At the beginning of September the Work-in-Process is 40% complete and at the end of the month it is 60% complete. Other data for the month include: 1,600 units 2,000 units Beginning Work-in-Process Inventory Units started Units completed & transferred to finished goods3,200 units Beginning Work-in-Process costs: 154,000 $82,080 Materials Conversion Current period costs: $260,000 $200,000 Materials Conversion Required (16 marks): Using the weighted-overage costing method, determine the answers for parts-a-through ?' below. Please place your final answers below and attach your supporting calculations. Please use either the five-step" process costing framework or an alternative presentation in good form. All calculations must be presented for full marks Final Answers tem a) Physical Units remaining in Ending Work-in-Process inventory b) Equivalent Units for Materials: c) Equivalent Units for Conversion Costs d) Cost Allocation Rate per EU for Materials: e) Cost Allocation Rate per EU for Conversion Costs: f) Total Costs to Account For g) Total Cost assigned to Units in Ending P Inventory h) Total Cost assigned to Units Completed & transferred out:Explanation / Answer
a) Physical units remaining in ending work in process inventory = 1600+2000-3200 = 400 Units
b) Equivalent unit of material = 3200+(400*100%) = 3600 Units
c) Equivalent unit of conversion = 3200+(400*60%) = 3440 Units
d) Cost allocation rate of EU for material = (154000+260000)/3600 = 115 per equivalent unit
e) Cost allocation rate per EU for conversion cost = (82080+200000)/3440 = 82 per equivalent unit
f) Total cost to account for = (154000+260000+200000+82080) = 696080
e) Total cost assigned to units in ending wip inventory = (400*115+240*82) = 65680
f) Total cost assigned to units completed and transferred out = (115+82)*3200 = 630400
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