The following data pertain to the Vesuvius Tile Company for July. Work in proces
ID: 2412476 • Letter: T
Question
The following data pertain to the Vesuvius Tile Company for July.
Work in process, July 1 (in units) .......................................................................................................................20,000
Units started during July ...................................................................................................................................?
Total units to account for ..................................................................................................................................65,000
Units completed and transferred out during July ................................................................................................?
Work in process, July 31 (in units) .....................................................................................................................15,000
Total equivalent units: direct material .................................................................................................................65,000
Total equivalent units: conversion ......................................................................................................................?
Work in process, July 1: direct material .............................................................................................................$164,400
Work in process, July 1: conversion ...................................................................................................................?
Costs incurred during July: direct material .........................................................................................................?
Costs incurred during July: conversion ..............................................................................................................659,400
Work in process, July 1: total cost .....................................................................................................................244,200
Total costs incurred during July .........................................................................................................................1,031,250
Total costs to account for ..................................................................................................................................1,275,450
Cost per equivalent unit: direct material .............................................................................................................8.25
Cost per equivalent unit: conversion ..................................................................................................................?
Total cost per equivalent unit ............................................................................................................................21.45
Cost of goods completed and transfered out during July ......................................................................................?
Cost remaining in ending work-in-process inventory: direct material ...................................................................?
Cost remaining in ending work-in-process inventory: conversion .........................................................................79,200
Total cost of July 31 work in process .................................................................................................................202,950
Additional Information:
a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
b. The company uses weighted-average process costing.
c. The July 1 work in process was 30 percent complete as to conversion.
d. The July 31 work in process was 40 percent complete as to conversion.
Problem 4–27 Missing Data; Production Report; Weighted-Average (LO 4, 5, 6)
Cost remaining in ending work-in-process inventory, direct material: $123,750
Total cost of July 31 work in process: $202,950
Chapter 4 Process Costing and Hybrid Product-Costing Systems 159
Required: Compute the missing amounts, and prepare the firm’s July production report
Explanation / Answer
Solution:
Unit started in July = Total units to be accounted for - Units in beinning WIP = 65000 - 20000 = 45000
Units completed and transferred out = Total units to be accounte for - Units in ending WIP = 65000 - 15000 = 50000 units
Cost per equivalent unit of direct material = $8.25
Total equivalent unit of direct material = 65000
Total cost of direct material = 65000 * $8.25 = $536,250
Cost of direct material in beginning WIP = $164,400
Direct material cost incurred in july = $536,250 - $164,400 = $371,850
Total cost per equivalent unit = $21.45
Cost per equivalent unit for conversion = $21.45 - $8.25 = $13.20
Total cost to be accounted for = $1,275,450
Conversion cost to be accounted for = $1,275,450 - $536,250 = $739,200
Equivalent units of conversion = $739,200 / $13.20 = 56000 units
Conversion cost included in beginning WIP = $244,200 - $164,400 = $79,800
Computation of Equivalent unit of Production - Weighted Average Particulars Physical Units Material Conversion Unit completed & Transferred out 50000 50000 50000 Closing WIP: 15000 Material (100%) 15000 Conversion (40%) 6000 Equivalent units of production 65000 65000 56000Related Questions
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