Yarmouth Company produces a liquid solvent in two departments: Mixing and Finish
ID: 2583986 • Letter: Y
Question
Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department):
The ending inventory has 14,200 units, which are 50 percent complete with respect to Finishing Department costs and 100 percent complete for Mixing Department costs.
Required:
Complete the production cost report using the weighted-average method. (Round "Cost per equivalent unit" to 2 decimal places.)
?
*Only in the question marks belong the answers.*
WIP inventory—Finishing Beginning inventory (10,200 units, 20% complete with respect to Finishing costs) Transferred-in costs (from Mixing) $ 113,520 Finishing conversion costs 3,493 Current work (98,400 units started) Mixing costs 885,600 Finishing costs 417,732Explanation / Answer
Equivalent Units Physical units Mixing Department FinishingDepartment Flow of Units: Units to be accounted for: Begginning WIP inventory 10200 Units started this period 98400 Total units to account for 108600 Units accounted for: Completed and transferred out 94400 94400 94400 Units in ending inventory 14200 Mixing 14200 Finishing 7100 Total units accounted for 108600 108600 101500 Total Mixing Department Finishing Department Flow of costs: Costs to be accounted for: Costs in beginning WIP inventory 117013 113520 3493 Current period costs 1303332 885600 417732 Total costs to be accounted for 1420345 999120 421225 Cost per equivalent unit Mixing 9.2 Finishing 4.15 Cost accounted for: Costs assigned to units transferred out 1260240 868480 391760 Costs of ending WIP inventory 160105 130640 29465 Total cost accounted for 1420345 999120 421225
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