NSPI a chemical manufacturing company. The following data pertains to its Produc
ID: 2589466 • Letter: N
Question
NSPI a chemical manufacturing company.
The following data pertains to its Production Dep.
Accounting period is January 20XX
M
CC
Beg work in process (BWIP)
units(u)
200
Percentage of completion BWIP
%
100%
40%
Costs of BWIP
$
$2,000
$2,000
Added (Started)
u
800
Cost of added
$
$22,000
$44,000
Completed & Transferred Out (CTO)
u
900
End work in process (EWIP)
%
100%
70%
CC are added proportionally over the process.
No Spoilage or Defective units.
M = Material; CC = Conversion Costs
Using FIFO.
1-Units in EWIP……
2-Equivalent units for CC……
3-Cost per equivalent units, total……
4-Cost of completed and transferred ……out
5-Cost for ending WIP…………
THE ANSWERNIS
A.
120
B.
$63,789
C.
$77.00
D.
$64,280
E.
800
F.
100
G.
$6,211
H.
$71.42
I.
890
J.
200
K.
$5,720
NSPI a chemical manufacturing company.
The following data pertains to its Production Dep.
Accounting period is January 20XX
M
CC
Beg work in process (BWIP)
units(u)
200
Percentage of completion BWIP
%
100%
40%
Costs of BWIP
$
$2,000
$2,000
Added (Started)
u
800
Cost of added
$
$22,000
$44,000
Completed & Transferred Out (CTO)
u
900
End work in process (EWIP)
%
100%
70%
CC are added proportionally over the process.
No Spoilage or Defective units.
M = Material; CC = Conversion Costs
Using FIFO.
1-Units in EWIP……
2-Equivalent units for CC……
3-Cost per equivalent units, total……
4-Cost of completed and transferred ……out
5-Cost for ending WIP…………
THE ANSWERNIS
A.
120
B.
$63,789
C.
$77.00
D.
$64,280
E.
800
F.
100
G.
$6,211
H.
$71.42
I.
890
J.
200
K.
$5,720
Explanation / Answer
Weighted Average Method NSPI Production Cost Report Month Ended Jan 31, 20XX Particulars Equivalent Units Physical Units Materials Conversion Costs Units to be accounted for Work in process - Beginning 200 Started into production 800 Total units 1,000 Units accounted for Transferred out 900 900 900 Work in process, Ending 100 100 70 (100% - materials, 70% conversion costs) Equivalent units accounted for 1,000 1,000 970 Costs Unit costs Materials Conversion Total WIP, Beginning 2,000 2,000 4,000 Costs incurred in Jan 22,000 44,000 66,000 Total Costs 24,000 46,000 70,000 Equivalent units 1,000 970 Costs per Equivalent Units 24.00 47.42 71.42 Cost Assignment Materials Conversion Total Equivalent Units 900 900 Cost per Equivalent Units 24.00 47.42 Total Cost of goods completed & Transferred out 21,600 42,680 64,280 Work in Process - ending Inventory Equivalent Units 100 70 Cost per Equivalent Units 24.00 47.42 Work in Process - ending Inventory 2,400 3,320 5,720 Total Cost accounted for 24,000 46,000 70,000 Costs to be accounted for Work in process, Beginning 4,000 Started into production 66,000 Total costs 70,000
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