PROBLEM 413B Comprehensive Problem Weighted-Average Method [LO2,

LO3, LO4, LO5]

CHECK FIGURE
(1) Conversion: 426,600 equivalent units;
(3) Ending work in process: $1,008,000.
The Barrington Company manufactures a high-quality plastic pipe that goes through
three processing stagesprior to completion.
Information on work in the first department, Cutting, is given below for May:
Production data:
Pounds in process, May 1: materials 100%
complete; conversion 90% complete
Pounds started into production during May
Pounds completed and transferred to the next
department
Pounds in process, May 31: materials 80%
complete; conversion 20% complete
Cost data:
Work in process inventory, May 1:
Materials cost
Conversion cost
Cost added during May:
Materials cost
Conversion cost

73,000
380,000
?
33,000
$111,60
0
$55,800
$580,32
0
$306,81
0

The company uses the weighted-average method.

Required:
1. Compute the equivalent units of production.
2. Compute the costs per equivalent unit for the month.
3. Determine the cost of ending work in process inventory and of the units
transferred out to the nextdepartment.
4. Prepare a cost reconciliation report for the month.

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Chapter 4Alternate Problems

PROBLEM 414B Comprehensive ProblemWeighted-Average Method

[LO2, LO3, LO4, LO5]
CHECK FIGURE
(3) Ending work in process: $69,300
Firenze, Inc., manufactures a product that goes through two departments prior to
completiontheMixing Department followed by the Packaging Department. The
following information is available aboutwork in the first department, the Mixing
Department, during June.
Units
Work in process, beginning
Started into production
Completed and transferred
out
Work in process, ending
Work in process, beginning
Cost added during June

80,000
392,500

Percent Completed
Material Conversio
s
n
70%
40%

382,500
90,000

75%
$31,500
$337,500

25%
$11,300
$239,800

Required:
Assume that the company uses the weighted-average method.
1. Determine the equivalent units for June for the Mixing Department.
2. Compute the costs per equivalent unit for June for the Mixing Department.
3. Determine the total cost of ending work in process inventory and the total cost of
units transferred tothe Packaging Department.
4. Prepare a cost reconciliation report for the Mixing Department for June.

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Introduction to Managerial Accounting, 6th edition

PROBLEM 415B Analysis of Work in Process T-accountWeighted-Average

Method [LO1 , LO2,LO3, LO4]
CHECK FIGURE
(3) Cost of units completed and transferred out: $1,028,450
Hooghly Products manufactures a silicone paste wax that goes through three
processing departmentsCracking,Blending, and Packing. All raw materials are
introduced at the start of work in the Cracking Department.The Work in Process Taccount for the Cracking Department for a recent month is given below:
Work in ProcessCracking Department
Inventory, May 1
Completed and
307,000 transferred
Materials
to the Blending
709,250
Department
Conversion
280,600
Inventory, May 31
?

The May 1 work in process inventory consisted of 100,000 pounds with $219,000 in
materials cost and $88,000 in conversion cost. The May 1 work in process inventory
was 100% complete with respect to materials and 80% complete with respect to
conversion. During May, 295,000 pounds were started into production. The May 31
inventory consisted of 88,000 pounds that were 100% complete with respect to
materials and 70% complete with respect to conversion. The company uses the
weighted-average method to account for units and costs.
Required:
1. Determine the equivalent units of production for May.
2. Determine the costs per equivalent unit for May.
3. Determine the cost of the units completed and transferred to the Blending
Departmentduring May

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Chapter 4Alternate Problems

PROBLEM 416B Cost Flows [LO1]

CHECK FIGURE
(2) Manufacturing overhead: $117,000debit balance
Pure Botanicals, Inc. keeps one of its production facilities busy making a perfume
called Lily of the Valley. The perfume goes through two processing departments:
Blending and Bottling.
The following incomplete Work in Process account is provided for the Blending
Department for March:
March 1 balance
Materials
Direct labor
Overhead
March 31 balance

Work in ProcessBlending
Completed and
33,500 transferred
to Bottling (760,000
154,600
ounces)
79,200
489,000
?

The $33,500 beginning inventory in the Blending Department consisted of the

following elements: materials, $8,400; direct labor, $3,300; and overhead applied,
$21,800.
Costs incurred during March in the Bottling Department were: materials used,
$45,000; direct labor, $17,200; and overhead cost applied to production, $110,000.
Required:
1. Prepare journal entries to record the costs incurred in both the Blending
Department and BottlingDepartment during March. Key your entries to items (a)
through (g) below:
a. Raw materials were issued for use in production.
b. Direct labor costs were incurred.
c. Manufacturing overhead costs for the entire factory were incurred, $716,000.
(Credit AccountsPayable and use a single Manufacturing Overhead control
account for the entire factory.)
d. Manufacturing overhead was applied to production using a predetermined
overhead rate.
e. Units that were complete with respect to processing in the Blending
Department were transferredto the Bottling Department, $632,000.
f. Units that were complete with respect to processing in the Bottling
Department were transferred toFinished Goods, $710,000.
g. Completed units were sold on account for $1,360,000. The cost of goods sold
was $640,000.
2. Post the journal entries from (1) above to T-accounts. The following account
balances existed at thebeginning of March. (The beginning balance in the
Blending Departments Work in Process accountis given above.)
Raw Materials

$214,60
0

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Introduction to Managerial Accounting, 6th edition

Work in ProcessBottling
Department
Finished Goods

$41,000
$14,000

After posting the entries to the T-accounts, find the ending balances in the inventory
accounts and theManufacturing Overhead account.

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Chapter 4Alternate Problems

PROBLEM 417B Comprehensive Problem; Second Production Department

Weighted-AverageMethod [LO2, LO3, LO4, LO5]
CHECK FIGURE
(3) Ending work in process: $12,410
Madison Meats Inc. produces sausages in three production departmentsMixing,
Casing andCuring,and Packaging. In the Mixing Department, meats are prepared
and ground and then mixed with spices.The spiced meat mixture is then transferred
to the Casing and Curing Department, where the mixture isforce-fed into casings
and then hung and cured in climate-controlled smoking chambers. In the
PackagingDepartment, the cured sausages are sorted, packed, and labeled. The
company uses the weighted-averagemethod in its process costing system. Data for
April for the Casing and Curing Department follow:
Units
Work in process inventory, April
1
Work in process inventory, April
30

Percent Completed
Mixing
Materials Conversio
n

100%

60%

50%

100%

20%

10%

Materials

Conversio
n

$12,270

$100

$1,435

$138,530

$11,185

$74,190

Mixing
Work in process inventory, April
1
Cost added during April

Mixing cost represents the costs of the spiced meat mixture transferred in from the
Mixing Department.The spiced meat mixture is processed in the Casing and Curing
Department in batches; each unit in theabove table is a batch, and one batch of
spiced meat mixture produces a set amount of sausages that arepassed on to the
Packaging Department. During April, 60 batches (i.e., units) were completed and
transferredto the Packaging Department.
Required:
1. Determine the equivalent units for April for mixing, materials, and conversion. Do
not round off yourcomputations.
2. Compute the costs per equivalent unit for April for mixing, materials, and
conversion.
3. Determine the total cost of ending work in process inventory and the total cost of
units transferred tothe Packaging Department in April.
4. Prepare a cost reconciliation report for the Casing and Curing Department for
April.

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Introduction to Managerial Accounting, 6th edition

PROBLEM 418B Interpreting a ReportWeighted-Average Method [LO2,

LO3, LO4]
CHECK FIGURE
(2) Conversion: 45,700 equivalent units
Chester Computers, Ltd., located in Bristol, England, assembles a standardized
personal computer fromparts it purchases from various suppliers. The production
process consists of several steps, starting withassembly of the mother circuit
board, which contains the central processing unit. This assembly takesplace in the
CPU Assembly Department. The company recently hired a new accountant who
prepared thefollowing report for the department for May using the weightedaverage method:
Units to be accounted for:
Work in process, May 1: materials 90%
complete; conversion 80% complete
Started into production
Total units
Units accounted for as follows:
Transferred to next department
Work in process, May 31: materials 75%
complete; conversion 50% complete
Total units
Cost Reconciliation
Cost to be accounted for:
Work in process, May 1
Cost added in the department
Total cost to be accounted for
Cost accounted for as follows:
Work in process, May 31
Transferred to next department
Total cost accounted for

11,500
38,000
49,500
41,900
7,600
49,500

35,765
129,812
165,577
17,670
147,907
165,577

The companys management would like some additional information about Mays
operation in theCPU Assembly Department. (The currency in England is the pound,
which is denoted by the symbol .)
Required:
1. How many units were started and completed during May?
2. What were the equivalent units for May for materials and conversion costs?
3. What were the costs per equivalent unit for May? The following additional data
are availableconcerningthe departments costs:
Materials
Work in process, May
1
Costs added during

Conversio
n
23,460
12,305
83,164

46,648

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Chapter 4Alternate Problems

Total
35,765
129,812

May
4. Verify the accountants ending work in process inventory figure (17,670) given
in the report.
5. The new manager of the CPU Assembly Department was asked to estimate the
incremental cost ofprocessing an additional 1,000 units through the department.
He took the unit cost for an equivalentwhole unit you computed in (3) above and
multiplied this figure by 1,000. Will this method yield avalid estimate of
incremental cost? Explain.

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Introduction to Managerial Accounting, 6th edition