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    Carlo Paras
    The document provides information to solve 10 process costing problems. Each problem provides additional data on beginning inventory, units completed, ending inventory, production costs, and percentage complete. The solutions involve calculating equivalent units, unit costs, cost of goods completed and transferred, and cost of ending work in process inventory.

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    4

    Uploaded by

    Carlo Paras
    203 views3 pages
    The document provides information to solve 10 process costing problems. Each problem provides additional data on beginning inventory, units completed, ending inventory, production costs, and percentage complete. The solutions involve calculating equivalent units, unit costs, cost of goods completed and transferred, and cost of ending work in process inventory.

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    The document provides information to solve 10 process costing problems. Each problem provides additional data on beginning inventory, units completed, ending inventory, production costs, and percentage complete. The solutions involve calculating equivalent units, unit costs, cost of goods completed and transferred, and cost of ending work in process inventory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    203 views3 pages

    4

    Uploaded by

    Carlo Paras
    The document provides information to solve 10 process costing problems. Each problem provides additional data on beginning inventory, units completed, ending inventory, production costs, and percentage complete. The solutions involve calculating equivalent units, unit costs, cost of goods completed and transferred, and cost of ending work in process inventory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Direct labor and manufacturing overhead $525,000

    a. Prepare journal entries to reflect the March activity.

    b. Compute the ending finished goods inventory balance.

    c. Compute the cost of goods sold.

    SOLUTION:

    a. Materials and In-Process Inventory $375,000


    Accounts Payable $375,000
    Conversion Costs $525,000
    Assorted accounts $525,000
    Cost of Goods Sold $880,000
    Finished Goods $ 20,000
    Materials and In-Process Inventory $375,000
    Conversion Costs $525,000

    b. $20,000 [($375,000 + $525,000)/90,000 x 2,000]

    c. $880,000 [($375,000 + $525,000)/90,000 x 88,000]

    6. Wheeler Inc. sold 125,000 units of product during the year. Variable cost per unit was $5, standard fixed manufacturing cost per unit was
    $8, and selling and administrative costs were $425,000. All costs were incurred as budgeted. Income was $175,000 after a favorable volume
    variance of $100,000. There were no changes in inventory during the year.

    a. Determine the selling price of a unit of product.

    b. Determine the volume used to set the standard fixed manufacturing cost per unit.

    c. Determine the budgeted amount of fixed manufacturing cost.

    SOLUTION:

    a. $17 {[($8 + $5) x 125,000 + $425,000 + $175,000 - $100,000]/125,000}

    b. 112,500 units [125,000 - ($100,000/$8)]

    c. $900,000 [(125,000 x $8) - $100,000]

    7. DJH Company uses FIFO process costing. Data are as follows:

    Beginning inventory 20% complete 15,000 units


    Units completed during period 200,000 units
    Ending inventory 30% complete 19,000 units

    The cost of the beginning inventory was $3,180 and current period production costs were $222,970.

    a. Compute equivalent production.

    b. Compute the unit cost.

    c. Compute the cost of the ending inventory of work in process.

    d. Compute the cost of goods completed and transferred to finished goods inventory.

    SOLUTION:

    a. 202,700 [200,000 + (19,000 x 30%) - (15,000 x 20%)]

    b. $1.10 ($222,970/202,700)c. $6,270 (19,000 x 30% x $1.10)

    d. $219,880

    Beginning inventory $ 3,180


    Finish beginning inventory (15,000 x 80% x $1.10) 13,200
    Units started and completed (185,000 x $1.10) 203,500
    -------
    Total $219,880
    ========
    8. The following data are available for 20X2 for Hunter, Inc., which uses weighted-average process costing.

    Beginning inventory (30% complete) 3,000 units


    Units started during 20X2 56,600 units
    Units completed during 20X2 55,000 units
    Ending inventory (60% complete) 4,500 units
    Costs of inventory at beginning of 20X2 $1,458
    Production costs incurred during 20X2 $71,244

    a. Compute equivalent production for 20X2.

    b. Compute the unit cost for 20X2 to the nearest cent.


    c. Compute the cost of the ending inventory of work in process.

    d. Compute the cost of goods completed and transferred to finished goods.

    SOLUTION:

    a. 57,700 [55,000 + (4,500 x 60%)]

    b. $1.26 [($1,458 + $71,244)/57,700]

    c. $3,402 [(4,500 x 60%) x $1.26]

    d. $69,300 (55,000 x $1.26)

    9. Molitor Inc. has the following data for July:

    Gallons in beginning inventory 13,000 gallons


    Gallons completed in July 52,500 gallons
    Gallons in ending inventory 7,500 gallons
    Percentage complete:
    Materials 100 %
    Conversion costs 45 %

    Costs Materials Conversion Costs


    Beginning Inventory $ 56,300 $ 33,600
    Incurred during July $321,700 $256,950

    Molitor uses the weighted-average method of costing.

    a. Compute the equivalent units of production for materials and for conversion costs for the month of July.

    b. Compute the unit costs for each cost factor.

    c. Compute the cost of finished gallons for July.

    d. Compute the cost of ending work in process.

    SOLUTION:

    a. Materials: 60,000 [52,500 + (7,500 x 100%)]


    Conversion: 55,875 [52,500 + (7,500 x 45%)]

    b. Materials: $6.30 [($56,300 + $321,700)/60,000]


    Conversion: $5.20 [($33,600 + $256,950)/55,875]

    c. $603,750 [($6.30 + 5.20) x 52,500]

    d. $64,800 Materials: 7,500 x 100% x $6.30 = $47,250


    Conversion: 7,500 x 45% x $5.20 = 17,550
    -------
    $64,800
    =======
    10. Yount Inc. has the following data for September:

    Gallons in beginning inventory 8,000 gallons


    Percentage complete:
    Materials 100 %
    Conversion costs 60 %
    Gallons completed in September 72,500 gallons
    Gallons in ending inventory 10,000 gallons
    Percentage complete:
    Materi

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