Weighted Average Method, Separate Materials Cost Janbo Company produces a variet

Question

Weighted Average Method, Separate Materials Cost

Janbo Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the molding department, where it is poured into molds and cooled. The following information relates to the blending process for August:

a. Work in Process on August 1, had 30,000 pounds, 20% complete. Costs associated with partially completed units were:

b. Work in Process on August 31, had 50,000 pounds, 40% complete.

c. Units completed and transferred out totaled 480,000 pounds. Costs added during the month were (all inputs are added uniformly):

Required:

1a. Prepare a physical flow schedule.

1b. Prepare an equivalent unit schedule.

2. Calculate the unit cost. Round unit cost value to three decimal places.
$

3. Compute the cost of EWIP and the cost of goods transferred out.

4. Prepare a cost reconciliation.

$

5. Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows:

The costs of the materials added during the month are also given:

Prepare an equivalent unit schedule with cost categories for each material.

Calculate the cost per unit for each type of material. Round your answers to the nearest cent.

Materials $220,000 Direct labor 30,000 Overhead applied 20,000

Explanation / Answer

Per Chegg guidelines, 4 sub-parts have been answered.

1 Janbo Company Physical Flow Schedule Units to account for: Units in beginning work in process 30000 Units started 500000 Total units to account for 530000 Units accounted for: Units completed 480000 From ending work in process 50000 Total units accounted for 530000 1b. Janbo Company Schedule of Equivalent Units Weighted Average Method Units completed 480000 Units in ending work in process 20000 Total equivalent units 500000 2 Unit cost = $11612500/500000 = $23.225 3 Ending work in process (20000 x $23.225) 464500 Goods transferred out (480000 x $23.225) 11148000 4 Janbo Company Cost Reconciliation Costs to account for: Beginning WIP 270000 August costs 11342500 Total to account for 11612500 Costs accounted for: Transferred out 11148000 Ending WIP 464500 Total costs accounted for 11612500

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.