Question

Problem 4: KP Products makes Pet Food. For the current week, KP started with 18,000 pounds...

Problem 4: KP Products makes Pet Food. For the current week, KP started with 18,000 pounds of dog food, added 167,000 pounds of dog food into production and ended the week with 15,000 pounds still in WIP inventory.

DIRECT MATERIALS The direct materials in beginning WIP were 100% complete and in ending WIP were 100% complete. Cost of Direct materials in beginning WIP was $14,600 and the cost of direct materials added during the week was $133,400. What was the cost per equivalent unit for Direct Materials for the week? What was the direct material cost (value) of Ending WIP? Of COGM?

CONVERSION COSTS The combined Direct Labor and Applied Overhead (conversion costs) for Beginning WIP was 30% complete and cost $7,200. The conversion for Ending WIP was 60% complete and the conversion cost for the pounds of dog food started into production was $225,500. What was the cost per equivalent unit for conversion for the week? What was the conversion cost of Ending WIP? Of COGM?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

4) Unit transferred out = 18000+167000-15000 = 170000

Equivalent unit of direct material = 170000+15000 = 185000

Cost per equivalent unit of material = (14600+133400)/185000 = 0.80

Cost of ending WIP = 15000*.80 = 12000

Cost of COGM = 170000*.8 = 136000

Equivalent unit of material = 170000+(15000*60%) = 179000

Cost per equivalent unit of conversion = (7200+225500)/179000 = 1.3

Cost of ending WIP = 15000*60%*1.3 = 11700

Cost of goods manufactured = 170000*1.3 = 221000

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem 4-14A Analysis of Work in Process T-account-Weighted-Average Method [LO4-1, LO4-2, LO4-3, LO4-4] Weston Products manufactures...
Problem 4-14A Analysis of Work in Process T-account-Weighted-Average Method [LO4-1, LO4-2, LO4-3, LO4-4] 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 21,800 Completed and transferred to the Mixing Department ? Materials 133,400 Conversion 225,500 ________________________________________...
Questions 1 and 2 refer to the following information. Chomp Pet Foods manufactures canned dog food....
Questions 1 and 2 refer to the following information. Chomp Pet Foods manufactures canned dog food. The firm employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. In the month of June, the company had 4000 units in beginning work in process that were 60% complete. During June, 7000 units were started and 7600 units were completed and transferred out....
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning...
Montreal Manufacturing Inc. has the following cost and production data for the month of April. Beginning WIP 17,100 units Started in production 104,500 Completed production 91,300 Ending WIP 30,300 The beginning inventory was 60% complete for conversion costs. The ending inventory was 40% complete for conversion costs. Materials are added at the beginning of the process. Costs pertaining to the month of April are as follows: Beginning inventory costs are:      Materials $66,100      Direct labour 19,500      Factory overhead...
A department uses the FIFO method of process costing. All direct materials are added at the...
A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 217 units in beginning WIP (73% complete with respect to conversion costs). 11,662 units started 154 units in ending WIP (70% complete with respect to conversion costs). $23 direct material cost per equivalent unit $14 conversion cost per equivalent unit $1,321 beginning WIP direct materials costs $3,324 beginning WIP conversion costs...
4. Happy Pet Inc. uses the weighted-average method in its process costing system. Data concerning the...
4. Happy Pet Inc. uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 600 Materials costs $ 10,800 Conversion costs $ 9,200 Percent complete with respect to materials 85% Percent complete with respect to conversion 55% Units started into production during the month 8,250 Units transferred to the next department during the month 7,100...
4) At the start of June, the Polishing Department of John's Counters, Inc. had 15,000 units...
4) At the start of June, the Polishing Department of John's Counters, Inc. had 15,000 units in beginning inventory that were 100% complete with respect to direct materials and conversion costs. During the month, it received 25,000 units from the Machining Department. It started and completed 17,000 units and transferred 32,000 units to the Packaging Department. It had 8,000 units in ending Work-in-Process Inventory. Direct materials are added at the beginning of the process. Units in beginning Work-in-Process Inventory were...
Watertime inc. manufactures old fashioned grandfather clocks. The production utilizes a highly automated assembly line. The...
Watertime inc. manufactures old fashioned grandfather clocks. The production utilizes a highly automated assembly line. The firm has identified two cost categories: direct materials and conversion costs. During the production process each clock moves first through the Assembly Department, where materials are added and the clock is assembled, then through the Testing Department, where the clock is inspected for quality control. All direct materials are added at the beginning of the production process but conversion costs are allocated evenly throughout...
Tannenbaum Corporation uses the weighted average method in its process costing system. This month, the beginning...
Tannenbaum Corporation uses the weighted average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:                                                             Cost                % complete             Materials costs                        5,700               65%             Conversion costs                     6,800               45% A total of 6,500 units were started and 5,900 units were transferred to the second processing department during the month. The first processing department incurred $125,500 of materials...
A department uses the FIFO method of process costing. All direct materials are added at the...
A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 214 units in beginning WIP (73% complete with respect to conversion costs). 8,477 units started 119 units in ending WIP (67% complete with respect to conversion costs). $2,087 beginning WIP direct materials costs $1,702 beginning WIP conversion costs $112,915 current month direct materials costs $92,268 current month conversion costs What is...
A department uses the weighted average method of process costing. All direct materials are added at...
A department uses the weighted average method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month. 193 units in beginning WIP (52% complete with respect to conversion costs). 10,513 units started 116 units in ending WIP (38% complete with respect to conversion costs). $1,994 beginning WIP direct materials costs $2,481 beginning WIP conversion costs $85,136 current month direct materials costs $105,996 current month conversion costs What...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT