1. EXERCISE 3-4. Physical Flow of Units [LO 1] In each case below, fill in the m
ID: 2667355 • Letter: 1
Question
1. EXERCISE 3-4. Physical Flow of Units [LO 1] In each case below, fill in the missing amount.Case #1 Work in Process,October 1 5,000 gallons
Units started during October ?
Units completed during October 15,000 gallons
Work in Process,October 31 2,000 gallons
Case #2 Work in Process,March 1 16,000 tons
Units started during March 3,500 tons
Units completed during March 14,400 tons
Work in Process,March 31 ?
Case #3 Work in Process,December 1 250,000 pounds
Units started during December 900,000 pounds
Units completed during December ?
Work in Process,December 31 350,000 pounds
2. EXERCISE 3-7. Cost per Equivalent Unit [LO 3] The balance in beginning Work in Process at
Bing Rubber Company for direct labor was $140,000. During the month of March, an additional
$700,000 of direct labor was incurred, and 30,000 pounds of rubber were produced.At the end of
March, 10,000 pounds of rubber were in process and the units were 50 percent complete. At the
start of March, the company had 6,000 pounds of rubber that were 40 percent complete.
Required
Calculate the cost per equivalent unit for labor assuming that labor is added uniformly throughout
the production process.
3. PROBLEM 2-11. Recording Inventory-Related Costs [LO 3, 6] Fill in the missing information.
Raw Materials
Beginning Balance 25,000 a
Purchases 35,000 (a)
Ending Balance 10,000
Work in Process
Beginning Balance 70,000 b
DM (a) (b)
DL 40,000
OH 60,000
Ending Balance 80,000
Manufacturing Overhead
65,000 60,000
(d)
Finished Goods
Beginning Balance 90,000
(b) /110.000 (c)
Ending Balance 110,000
Cost of Goods Sold
(c)
(d)
Explanation / Answer
1)
Case #1
Account for the number of physical units. The number of units at the start of the period plus the number of units started during the period should equal the number of units completed plus the number of units in ending Work in Process.
Work in process, October 1 5,000 gallons
Units completed during October 15,000 gallons
Work in Process, October 31 2,000 gallons
Units started during October ?
Work in process, Beginning + Units started during the period = Units completed during the period + Units in ending WIP
Units started during the period = 15,000 + 2,000 -5,000
Units started during the period = 17,000 – 5,000
= 12,000 gallons
Case #2
Work in Process, March 1 16,000 tons
Units started during March 3,500 tons
Units completed during March 14,400 tons
Work in Process, March 31 ?
Work in process, Beginning + Units started during the period = Units completed during the period + Units in ending WIP.
Units in ending WIP = 16,000 + 3,500 -14,400
= 19,500 – 14,400
= 5,100 tons
Case #3
Work in Process, December 1 250,000 pounds
Units started during December 900,000 pounds
Units completed during December ?
Work in Process, December 31 350,000 pounds
Work in process, Beginning + Units started during the period = Units completed during the period + Units in ending WIP
Units completed during December = 250,000 + 900,000 – 350,000
= 1,150,000 – 350,000
= 800,000 pounds
2)
Cost per Equivalent unit calculation:
Cost
Labor
Beginning WIP
$140,000
Additional cost incurred
700,000
Total
$840,000
Units
Units completed
30,000
Equivalent units ,ending WIP
5,000
Total
35,000
Cost per equivalent unit
$840,000/35,000
Cost per equivalent unit
$24
As per the Cramster rules you should not ask more than one question in single post. But I answered 2 questions thank you..
Cost
Labor
Beginning WIP
$140,000
Additional cost incurred
700,000
Total
$840,000
Units
Units completed
30,000
Equivalent units ,ending WIP
5,000
Total
35,000
Cost per equivalent unit
$840,000/35,000
Cost per equivalent unit
$24
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