Appleton makes wooden toys. All direct materials are added at the beginning of t

Question

Appleton makes wooden toys. All direct materials are added at the beginning of the process and conversion is added evenly. Spoiled units are detected upo at the end of the process an started with 2,000 units with a cost of direct materials of $17,700 and conversion costs of$10,900 (50% complete.) 10 000units were started in Marchat a cost of $81,30 n inspection d are disposed of at zero et value. Work in process 0 for direct materials and $93,000 for conversion costs. 9,000 units were transferred out. Work in process had an ending inventory of 1,800 units. Normal spoilage is 10% ofgood units transferred out. Ending inventory is 75% complete for conversion costs. Calculate equivalent units using weighted average showing costs in ending WIP and COGS Provide Journal entry for costs leaving WIP 4. 5. wie 13,300 ,600

Explanation / Answer

Beggining units 2000 Transferred out 9,000 Started intro production 10000 Normal spoilage 900 Abnormal spoilage 300 Ending units 1,800 12000 12,000 Equivalent units Material Conversion Units transferred                                            A 9,000 9,000 Abnormal spoilage 300 300 Ending Units 1,800 1,800 Completion 100% 75% B 1800 1350 Total units 11100 10650 Cost per equivalent units Particulars Material Conversion cost total As at beginning 17700 10900 28600 Added during the month 81300 93000 174300 Cost to be accounted for 99000 103900 202900 Total eqivalent units 11100 10650 Cost per equivalent unit 8.92 9.76 18.67 Cost per equivalent unit = Cost to be accounted for / Total equivalent units Cost of ending work in progress Conversion cost Particulars Material Total Ending units 1,800 1,800 1,800 Cost per equivalent units 8.92 9.76 18.67 Completion 100% 75% Total cost 16054 13170 29224 Cost of goods transferred Conversion cost Particulars Material Total Number of units 9000 9000 Cost per equivalent units 8.92 9.76 Total amount 80270 87803 168073 Abnormal loss Conversion cost Add Particulars Material Total Number of units 300 300 Cost per equivalent units 8.92 9.76 Total amount 2676 2927 5602

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