Winchester Salad Dressing had beginning work-in-process in July of $248,320 cons
ID: 2415473 • Letter: W
Question
Winchester Salad Dressing had beginning work-in-process in July of $248,320 consisting of $101,640 of materials and $146,680 of conversion costs. There were 16,000 units (one unit equals one case of salad dressing) in beginning work-in-process, 40% complete as to conversion costs. Materials are added at the beginning of the process. During November, 34,000 were transferred out; and 9,000 remained in ending inventory. The ending work-in-process was 70% complete for conversion cost. Costs during the period amounted to $781,200 for direct materials and $1,009,280 for conversion. Winchester uses FIFO. Materials were added in the beginning.
Prepare a production cost report. NO T-ACCOUNTS.
Explanation / Answer
beginning units 16,000 units
As FIFO method is applied
so first 16,000 units will be transferred out
umber of units into production
for 16,000 units
material 16,000 * 0% = nil
conversion cost 16,000 *60% = 9,600 units
for 27,000 units
18,000 units fully completed and transferred
material 18,000 units
conversion cost 18,000 units
for remaining 9,000 units
material 9,000 *100% = 9,000 units
conversion 9,000 * 70% = 6,300 units
total material = 0 + 18,000 + 9,000 = 27,000 units
total conversion cost = 9,600 + 18,000 + 6,300 = 33,900 units
Per unit cost
material = $781,200 / 27,000 units = $28.93
conversion cost = $1,009,280 / 33,900 = $29.77
Cost allocation Total cost Direct material convertion cost
Beginning inventory $248,320 $101,640 $146,680
to complete
conversion cost (60%)
16,000 *29.77*.60 $285,815 $285,815
started and completed
18,000 *(28.93+29.77) $1,056,700 $520,800 $535,900
ending inventory
Material 9,000 * 28.93 $260,400 $260,400
Conversion cost
9,000 * .70 * 29.33 $187,565 $187,565
total cost $2,038,800 $882,840 $1,155,960
beginning units 16,000 units
tansferred out 34,000 units started in(B/F) 27,000 units ending inventory 9,000 units total 43,000 units total 43,000 unitsRelated Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.