eBook Problem-Solving Strategy Equivalent Units and Related Costs; Cost of Produ

Question

eBook Problem-Solving Strategy Equivalent Units and Related Costs; Cost of Production Report; Entries Wilmington Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process-Filling was as follows on December 1, 2014: Work in Process-Filling Department (3,100 units, 70% completed): Direct materials (3,100 x $10.40) Conversion (3,100 x 70% x $6.60) $32,240 14,322 $46,562 The following costs were charged to Work in Process-Filling during December: Direct materials transferred from Reaction Department: 40,000 units at $10.00 a unit Direct labor Factory overhead During December, 39,700 units of specialty chemicals were completed. Work in Process-Filling Department on December 31 was 3,400 units, 40% completed. Required: $400,000 38,840 133,390

Explanation / Answer

UNIT INFORMATION: Units charged to production: inventory in process, december 1 3100 received from reaction department 40000 total units to be accounted for by the filling department 43100 Units to be assigned costs: equivalent units whole units material conversion inventory in process december 1 3100 0 930 started and completed in december 36600 36600 36600 transferred to finished goods in december 39700 36600 37530 inventory in process december 31 3400 3400 1360 total units to be assigned costs 43100 40000 38890 Costs per equivalent units: total costs for december in filling department 400000 272230 cost per equivalent unit 10 7 Costs charged to production: direct materials conversion total inventory in process, december 1 46562 costs incurred in december 672230 total costs accounted for by the filling department 718792 Costs allocated to completed and partially completed units: inventory in process, december 1 balance 46562 to complete inventory in process december 1 0 6510 6510 cost of completed december 1 work in process 0 6510 53072 started and completed in december 366000 256200 622200 transferred to finished goods in december 675272 inventory in process. December 31 34000 9520 43520 total costs assigned by the filling department 718792 JOURNAL ENTRIES: 1) debit credit work in process-filling department 400000 work in process-reaction department 400000 2) finished goods 675272 work in process-filling department 675272 material labor 3) cost per equivalent unit for november 10.4 6.6 cost per equivalent unit for december 10.0 7.0 change decrease increase amount 0.4 0.4

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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