assignment

55. a. Springtime Paints

Cost of Production Report For Month Ended May 31, XXXX

Production data: Units Beginning Work in Process Inventory 4,000

Units started 21,000 Units to account for 25,000

DIRECT MATERIALS Units Chemicals Cans Conversion

Beginning Work in Process Inventory

4,000

4,000 4,000

4,000

Started & completed 16,000 16,000 16,000 16,000

Ending WIP Inventory 5,000 5,000 0 4,000

Units accounted for 25,000 25,000 20,000 24,000

Cost data: DIRECT MATERIALS

Total Chemicals Cans Conversion

Beginning inventory $ 51,900 $ 45,100 $ 0 $ 6,800 Current costs 7,000 46,000 Cost to account for $ 7,000 $52,800 Divided by Equivalent Units of Production

÷ 25,000 ÷ 20,000 ÷ 24,000

Cost per equivalent unit $13.51 $10.96 $0.35 $2.20

Cost assignment: Transferred out ($13.51 × 20,000) $270,200 Ending WIP

Chemicals (5,000 × $10.96) $54,800 Conversion (4,000 × $2.20) 8,800 63,600

$274,000 $333,800228,900 281,900

Total cost accounted for $333,800

b. Springtime Paints Cost of Production Report

For Month Ended May 31, XXXX

Production data: Units

Beginning WIP Inventory 4,000

Units started 21,000

Units to account for

25,000

DIRECT MATERIALS

Units Chemicals Cans Conversion


4,000 3,000

Started & completed 16,000 16,000 16,000 16,000 Ending WIP Inventory 5,000 5,000 0 4,000 Units accounted for 25,000 21,000 20,000 23,000

Cost data: DIRECT MATERIALS

Total Chemicals Cans Conversion

Beginning inventory $ 51,900 Current costs 281,900 $228,900 $ 7,000 $46,000 Cost to account for $333,800 Divided by EUP ÷ 21,000 ÷ 20,000 ÷ 23,000 Cost per equivalent unit $13.25 $10.90 $0.35 $2.00

Cost assignment:

Transferred out

Beginning WIP Inventory $ 51,900 Complete beginning WIP

Cans (4,000 × $0.35) 1,400 Conversion (3,000 × $2.00) 6,000

Total cost of BI transferred $ 59,300

Started & completed (16,000 × $13.25) 212,000 $271,300 Ending WIP Inventory

Chemicals (5,000 × $10.90) $ 54,500 Conversion (4,000 × $2.00) 8,000 62,500

Total cost accounted for $333,800

c. The WA calculations are easier to make, but this method tends to obscure current period costs because the cost per EUP includes both current costs and prior costs that were in beginning inventory. This method is most appropriate when conversion costs, inventory levels, and raw material prices are stable.

The FIFO method is based on current period work only. This method is most appropriate when conversion costs, inventory levels, or raw material prices fluctuate. This method should also be appropriate when accuracy in current equivalent unit costs is important or when a standard cost system is used.

57. Octavia Corp. Curing Dept. Cost of Production Report

For the Month Ended May 31, 2013

Production Data: Units TI DM DL OH



Units to account for 48,000


8,000 8,000

8,000

8,000

Started & completed 36,000 36,000 36,000 36,000 36,000

Ending WIP Inventory 4,000

4,000 2,800

2,000

1,600

Units accounted for

48,000 48,000 46,800 46,000 45,600

Cost Data:

Total TI DM DL OH

Beginning WIP Inventory $ 278,872 $ 200,160

$ 42,504 $ 31,360 $ 4,848

Current costs 2,739,020 1,620,000 333,300 517,880 267,840 Cost to account for $3,017,892 $1,820,160

$375,804 $549,240 $272,688 Divided by

EUP ÷ 48,000

÷ 46,800 ÷ 46,000 ÷ 45,600 Cost per EUP $63,87 $37.92

$8.03 $11.94 $5.98

Cost Assignment: Transferred out (44,000 × $63.87) $2,810,280 Ending WIP Inventory:

TI (4,000 × $37.92) $151,680 DM (2,800 × $8.03) 22,484 DL (2,000 × $11.94) 23,880 OH (1,600 × $5.98) 9,568 207,612

Total cost accounted for $3,017,892 (CMA adapted)

59. Octavia Corp. Curing Dept. Cost of Production Report


Production Data: Units TI DM DL OH



Units to account for 48,000


0

1,600 4,800 5,600

Started & completed 36,000

36,000

36,000 36,000 36,000

Ending WIP Inventory 4,000

4,000

2,800 2,000 1,600

Units accounted for

40,000 40,400 42,800 43,200

Cost Data:

Total TI DM DL OH

Beginning WIP Inventory $ 278,872

Current costs 2,739,020 $1,620,000 $333,300 $517,880 $267,840 Cost to account for $3,017,892

Divided by EUP ÷ 40,000 ÷ 40,400 ÷ 42,800 ÷ 43,200

Cost per EUP $67.05 $40.50

$8.25 $12.10 $6.20

Cost Assignment:

Transferred out:

Beginning WIP Inventory $ 278,872

Complete beginning inventory:

DM (1,600 × $8.25) $ 13,200

DL (4,800 × $12.10) 58,080

OH (5,600 × $6.20) 34,720 106,000

Started & completed (36,000 × $67.05) 2,413,800

Total cost of transferred out $2,798,672

Ending WIP Inventory:

TI (4,000 × $40.50) $162,000

DM (2,800 × $8.25) 23,100

DL (2,000 × $12.10) 24,200

OH (1,600 × $6.20) 9,920 219,220

Total cost accounted for $3,017,892

61. a. Extrusion Form Trim Finish

Units produced 16,000 11,000 5,000 2,000 Material costs $192,000 $ 44,000 $ 15,000 $12,000 Unit cost $ 12.00 $ 4.00 $ 3.00 $ 6.00 Conversion cost $392,000 $132,000 $ 69,000 $42,000 Unit cost

$ 24.50 $ 12.00 $ 13.80 $ 21.00 Plastic Standard Deluxe Executive

Unit costs: Sheets Model Model Model

Extrusion material $ 12.00 $ 12.00 $ 12.00 $ 12.00

Form material –– 4.00 4.00 4.00

Trim material –– –– 3.00 3.00

Finish material –– –– –– 6.00

Extrusion conversion 24.50 24.50 24.50 24.50

Form conversion –– 12.00 12.00 12.00

Trim conversion –– –– 13.80 13.80

Finish conversion –– –– ––

21.00

Total unit cost $ 36.50 $ 52.50 $ 69.30 $ 96.30

Times units produced × 5,000 × 6,000 × 3,000 × 2,000

Total product cost $182,500 $315,000 $207,900 $192,600

b. EQUIVALENT UNITS Material Conversion

Entering trim operation: % Qty. % Qty. 2,000 Deluxe units 100 2,000 100 2,000 1,000 Deluxe units 100 1,000 60 600 2,000 Executive units 100 2,000 100 2,000 Total equivalent units 5,000 4,600

Deluxe model WIP costs: Unit Cost Total Costs

Extrusion material $12.00 $12,000 Form material 4.00 4,000 Trim material (100%) 3.00 3,000 Extrusion conversion 24.50 24,500 Form conversion 12.00 12,000 Trim conversion (60%) 9.00* 9,000*

Work in process costs $64.50 $64,500

*Conversion cost = ($30,000 + $39,000) ÷ 4,600 = $15 per equivalent unit.

67. Maximum normal spoilage = 70,000 × 0.03 = 2,100 units

LaToya Company Cost of Production Report


Units Material Conversion

Beginning WIP Inventory 5,600 Units started 74,400 Units to account for

80,000

Beginning WIP Inventory 5,600 0 2,800 Started & completed 64,400 64,400 64,400 Ending WIP Inventory 7,500 7,500 2,500 Normal spoilage 2,100 2,100 630 Abnormal spoilage 400 400 120 Units accounted for

80,000 74,400 70,450

Total Material Conversion

Beginning WIP Inventory $ 7,632 Current costs 106,168 $74,400 $31,768 Total cost to account for $113,800 Divided by EUP ÷ 74,400 ÷ 70,450 Cost per EUP $1.45 $1.00 $0.45* *Rounded

Cost Assignment: Transferred out:

Beginning WIP Inventory cost $ 7,632.00 Cost to complete

Conversion (2,800 × $0.45) 1,260.00 Total cost of BI $ 8,892.00 Started & completed (64,400 × $1.45) 93,380.00

Normal spoilage:* Direct material (2,100 × $1.00) $2,100.00

Conversion (630 × $0.45) 283.50 2,383.50 Total cost transferred out $104,655.50 Ending WIP Inventory:

Direct material (7,500 × $1.00) $7,500.00 Conversion (2,500 × $0.45) 1,125.00 8,625.00

Abnormal spoilage: Direct material (400 × $1.00) $ 400.00 Conversion (120 × $0.45) 54.00 454.00

Total cost accounted for (off due to rounding) $113,734.50

assignment

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