Professional Documents
Culture Documents
2.
3,800
1,700
5,500
100%
20%
3,800
1,700
_____
(1) 5,500
3,800
340
____
(2) 4,140
Total
$ 39,850
272,900
$312,750
$3.15
numberofunits toalcostper
transfer dout equivalentunit
2.
89,000$3.15
$280,350
............................................................
$16,800
15,600
32,400
$312,750
Direct
Material
103,000
(89,000)
14,000
Conversion
97,000
(89,000)
8,000
$9.70
numberofunits toalcostper
transfer dout equivalentunit
2.
Total
$ 102,650
425,300
$527,950
47,000$9.70
$455,900
..........................................................
$60,450
11,600
72,050
$527,950
Direct
Material
62,500
(47,000)
15,500
Conversion
49,000
(47,000)
2,000
3.
Accumulated
by
department
Conversion costs:
Direct-labor
Manufacturing
overhead
Work-in-Process Inventory:
Finishing Department
Batch P25
Accumulated
by
batch
Batch S33
Directmaterial
costs
Work-in-Process Inventory:
Packaging Department
Batch P25
Finished-Goods Inventory
$21.00
-07.50
6.00
.50
$35.00
Scholastic
-0-
$11.25
7.50
6.00
-0-
$24.75
*The two production departments each worked on a total of 6,000 balls, but the
Packaging Department handled only the 2,000 professional balls.
3.
Journal entries:
Work-in-Process Inventory: Preparation Department..........
Raw-Material Inventory..................................................
39,500*
39,500
45,000*
45,000
45,000*
45,000
129,500*
129,500
36,000*
36,000
66,500*
99,000
165,500
3,500
2,500*
1,000
Finished-Goods Inventory......................................................
Work-in-Process Inventory: Packaging Department...
*$70,000 = $66,500 + $3,500
70,000*
70,000
SOLUTIONS TO PROBLEMS
PROBLEM 4-25 (45 MINUTES)
1.
2.
Physical
Units
40,000
190,000
230,000
180,000
50,000
230,000
Equivalent units:
Percentage
of
Completion
with
Physical Respect to
Units
Conversion
40,000
38%
190,000
230,000
180,000
50,000
230,000
100%
55%
Equivalent Units
Direct
Material Conversion
180,000
50,000
180,000
27,500
230,000
207,500
Direct
Material
$110,500
430,000
$540,500
230,000
$2.35
Conversion
$ 22,375
320,000
$342,375
207,500
$1.65
Total
$132,875
750,000
$882,875
$4.00
numberofunits toalcostper
transfer dout equivalentunit
180,000$4.00
$720,000
50,000$2.35
$117,500
............................................................
numberof costper
e quivalent equivalent
units of unitof
direct material direct material
Conversion:
............................................................
numberof costper
e quivalent equivalent
unitsof unitof
conversion conversion
27,500$1.65
45,375
....................................................................
$162,875
$720,000
162,875
$882,875
$ 225,000
710,000
455,000
$1,390,000
Goods completed during April cost $2,002,000 (26,000 units x $77) as the
following calculations show:
Physical
Units
Percentage
Of
Completion
Equivalent Units
With
Respect to Direct
Conversion Material Conversion
3,000
27,000
30,000
80%
26,000
4,000
30,000
100%
45%
26,000
4,000
26,000
1,800
30,000
27,800
Direct
Material
Conversion
Total
$ 230,000
1,390,000
$1,620,000
30,000
$54a
$ 63,940
575,460
$639,400
27,800
$23b
$ 293,940
1,965,460
$2,259,400
$77c
3.
4.
5.
(a)
(b)
10,000
75,000
78,500
$30,225
600,000
11.85
1,556,250
44,500
75,000
5,000
80,000
100%
70%
75,000
5,000
_____
80,000
75,000
3,500
_____
78,500
Direct
Material
$112,000
600,000
$712,000
80,000
$8.90*
Conversion
$30,225
900,000
$930,225
78,500
$11.85
Total
$142,225
1,500,000
$1,642,225
$20.75**
numberofunits toalcostper
t ransfer dout equivalentunit
.................................................................. 75,000$20.75
$1,556,250
numberof costper
equivalent equivalent
unitsof unitof
directmaterial directmaterial
Conversion:
....................................................................
5,000$8.90
$44,500
numberof costper
equivalent equivalent
unitsof unitof
conversion conversion
3,500$11.85
41,475
$85,975
..........................................................................
$1,556,250
85,975
$1,642,225
$76,000 $460,000
5,500 2,000 2,500
*Note that all of the products sold after processing in departments I, II, or III were
produced orginally in department I.
2.
$44,000 $136,000
2,000 2,500
*Note that all of the products sold after processing in departments II and III were
colored in department II.
3.
$900,000
$53.60
10,000
$143.60
direct material
conversion cost per
+ per unit in department II + unit in department II
$144,000
$40.00
4,500
5.
$76,000 $147,500
2,500