Question

Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing...

Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department.

Below is information related to Intense Co.’s Mixing Department during the current period:

  • The Mixing Department began the period with 10,000 units of beginning inventory, costing $132,000.
    • The $132,000 consisted of $90,000 of materials cost and $42,000 of conversion costs.
    • The 10,000 units were 60% complete with regard to materials and 40% complete with regard to conversion.
  • During the period an additional 90,000 units were started in the Mixing Department.
  • Costs added to production during the period consisted of $385,000 of materials and $560,000 of conversion costs.
  • As of the end of the period, 20,000 units were still unfinished. The units were 75% complete with regard to materials and 30% complete with regard to conversion costs.

For the Mixing Department for the Intense Co.:

1.            Using the weighted average method, compute equivalent units of production for materials and for conversion for the current period.   

2.            Compute the cost per equivalent unit for materials and for conversion costs for the current period.

3.            Assign costs to units transferred out to the Finishing Department and to units remaining in ending inventory.  

4.            Prepare a Cost Reconciliation Report for the Mixing Department.              

Homework Answers

Answer #1
$
Material Conversion Cost
Units completed and transferred     80,000 100%     80,000 100%        80,000
CWIP     20,000 75%     15,000 30%          6,000
Equivalent units 100,000     95,000 A        86,000 A
Cost per equivalent unit
Beginning WIP     90,000        42,000
Cost added to production 385,000      560,000
475,000 B      602,000 B
Cost per equivalent unit           5.0 B/A              7.0 B/A
Cost assigned
Units transferred 960,000 (80,000*5) +(80,000*7)
CWIP 117,000 (15,000*5) +(6,000*7)
Cost reconciliation report
Beginning WIP     90,000        42,000
Cost added to production 385,000      560,000
475,000      602,000
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ACCTG 231 – Comprehensive Problem 2 To receive credit for any answer, your computations must be...
ACCTG 231 – Comprehensive Problem 2 To receive credit for any answer, your computations must be clearly presented with each component well-labeled (identified). Intense Co. manufactures a product that uses two production departments. Units are begun in the Mixing Department and then transferred to the Finishing Department. Below is information related to Intense Co.’s Mixing Department during the current period: The Mixing Department began the period with 10,000 units of beginning inventory, costing $132,000. The $132,000 consisted of $90,000 of...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process—Grinding Department   Inventory, May 1 174,720 Completed and transferred to the Mixing Department ?   Materials 465,510   Conversion 217,470   Inventory, May 31 ? The May 1 work in process inventory consisted of 91,000 pounds with...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process Inventory Sept. 1 27,000unitsConversion complete 70%Work-in-process inventory Sept. 30 18,000unitsConversion complete 50%Units started into production in Sept. 80,000 Units completed and transferred out ?unitsCosts Work-in-process inventory Sept.1 Material P$133,000 Material Q 122,000 Conversion 133,000 Costs added in September Material P$199,000 Material Q 183,000 Conversion 392,800 Material P is added at the beginning of work...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process Inventory Sept. 1 29,000 units Conversion complete 70 % Work-in-process inventory Sept. 30 15,000 units Conversion complete 50 % Units started into production in Sept. 69,000 Units completed and transferred out ? units Costs Work-in-process inventory Sept.1 Material P $ 116,000 Material Q 106,000 Conversion 116,000 Costs added in September Material P $ 174,000...
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking....
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process—Grinding Department Inventory, May 1 116,640 Completed and transferred to the Mixing Department ? Materials 575,380 Conversion 221,220 Inventory, May 31 ? The May 1 work in process inventory consisted of 81,000 pounds with...
O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials...
O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. O'Leary uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 27,500 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 38,500 units in the ending work-in-process inventory. 55,000 units were completed and transferred out of Department B during October. An analysis of the...
1) Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing,...
1) Story Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments—Mixing, Refining, and Packaging. On January 1, the first department—Mixing—had a zero beginning balance. During January, 42,000 gallons of chemicals were started into production. During the month, 34,000 gallons were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all direct materials are added at the beginning of the production process, and conversion costs are applied evenly through the process. During January,...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials...
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): Work in Process—Mixing Department June 1 balance 40,000 Completed and transferred to Finished Goods ? Materials 131,680 Direct labor 85,500 Overhead 103,000 June 30 balance ?...
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory...
In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $31,000 and ending work in process inventory of $36,000. During the month, the cost of units transferred out from the department was $166,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be: . Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The...
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September. Work-in-process Inventory Sept. 1 32,000units Conversion complete 70% Work-in-process inventory Sept. 30 23,000units Conversion complete 50% Units started into production in Sept. 103,000 Units completed and transferred out ? units Costs    Work-in-process inventory Sept.1    Material P $171,000 Material Q 157,000 Conversion 171,000 Costs added in September    Material P   $257,000 Material Q 236,000 Conversion   506,900 Material...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT