Exercise 4-2 Group Work
Exercise 4-2 Group Work
Exercise 4-2 Group Work
Clonex Labs, Inc. uses a process costing system. The following data are available for one
department for October.
percentage complete
units Materials Conversion
Work in process, October 1………….. 30,000 65% 30%
Work in process, October31…………. 15,000 80% 40%
The department started 175,000 units into production during the month and transferred 190,000
complete units to the next department.
Required :
Compute the equivalent units of production for October assuming that the company uses the
weighted-average method of accounting for units and costs.
Answer :
Superior Micro Products uses the weighted-average method in its process costing system. Data
for the Assembly Department for May appear below :
Required :
Compute the cost per equivalent unit for materials, for labor, and for overhead.
Answer :
Superior Micro Products Materials Labor Overhead
Cost of beginning work in process inventory $ 18,000 $5,500 $27,500
Cost added during the period $238,900 $80,300 $401,500
Total Cost $256,900 $85,800 $429,000
Equivalent units of production 35,000 33,000 33,000
Cost per equivalent unit $7.34 $2.6 $13
Exercise 4-4 Applying Costs to Units-Weighted Average Method
Data concerning a recent period’s activity in the Prep Department, the first processing
department in a company that uses process costing, appear below :
Material Conversion
Equivalent units of production in ending work in process 300 100
Cost per equivalent unit $31.56 $9.32
A total of 1,300 units were completed and transferred to the next processing department during
the period.
Required :
Compute the cost of the units transferred to the next department during the period and the cost of
ending work in process inventory.
Prep Department
Costs of Ending Work in Process inventory and the Units Transferred Out
Materials Conversion Total
Ending Work in process inventory :
Equivalent units of production 300 100
Cost per equivalent unit $31.56 $9.32
$9,468 $932
$10,400
Units complete and transferred out :
Units transferred to the next department 1,300 1,300
Cost per equivalent unit $31.56 $9.32
Cost of units transferred $41,028 $12,116 $53,144
Required :
Compute the cost per equivalent unit for materials, labor, and overhead, and in total
Answer :
Superior Micro Product
Cost per Equivalent Unit-FIFO Method
Materials Labor Overhead
Cost added during the period $193,320 $62,000 $310,000
Equivalent units of production 27,000 25,000 25,000
Cost per equivalent unit $7.16 $2.48 $12.4
Mixing Department
Costs of Ending Work in Process and Units Transferred Out-FIFO method
Materials Conversion Total
Ending Work in Process, inventory :
Equivalent Units of Production 800 200
$4.40 $1.30
$3520 $260 $3780
Units transferred out :
Cost in beginning Work in Process inventory $27,000 $380
Equivalent units of production required to complete the
beginning work in process inventory 400 700
Cost per Equivalent unit $4.40 $1.30
$1.760 $910 $2,670
Cost of Units started and Complete this period 8000 8000
$4.40 $1.30
$35,200 $10,400 $45,600
$52,050