Accounting – Missouri Corporation shows the following information concerning the work in process

| January 31, 2017

Question
QuestionNUmber 1
Missouri Corporation shows the following information concerning the work in process at its plant:

Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 59 percent complete).

Started this month, 60,100 units.

Transferred out, 50,000 units.

Ending inventory, 19,400 units (materials are 100 percent complete; conversion costs are 15 percent complete).

Required:

(a)

Compute the equivalent units for materials using the weighted-average method.

Equivalent Unites:

(b)

Compute the equivalent units for conversion costs using the weighted-average method.

Equivalent Unites:

Question number 2:

Missouri Corporation shows the following information concerning the work in process at its plant:

Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 61 percent complete).

Started this month, 60,000 units.

Transferred out, 50,300 units.

Ending inventory, 19,600 units (materials are 100 percent complete; conversion costs are 17 percent complete).

Required:

(a)

Compute the equivalent units for materials using FIFO.

Equivalent Unites:

(b)

Compute the equivalent units for conversion costs using FIFO.

Equivalent Unites:

QuestionNumber 3

Top of Form

Assume that El Paso Corporation provides you with the following information for one of its
department’s operations for September (no new material is added in Department B):

WIP inventory—Department B

Beginning inventory (8,200 units, 20% complete with
respect to Department B costs)

Transferred-in costs (from Department A)

$

35,830

Department B conversion costs

8,930

Current work (18,900 units started)

Prior department costs

88,830

Department B costs

167,020

The ending inventory has 3,200 units, which are 50 percent complete with respect to Department B costs and 100 percent complete for prior department costs.

Required:

Use a production cost report using FIFO. (Round your amounts to the nearest whole unit/dollar except for “cost per equivalent unit” which should be rounded to two decimal places.)

Physical Units

Equivalent Units

Prior Department

Department B

Flow of units:

Units to be accounted for:

Beginning WIP inventory

Units started this period

Total units to account for

0

Units accounted for:

Completed and transferred out

From beginning WIP inventory

Prior department

Department B

Started and completed currently

Units in ending WIP inventory

Prior department

Department B

Total units accounted for

Top of Form

Bottom of Form

Total

Prior department

Department B

Flow of costs:

Costs to be accounted for:

Costs in beginning WIP inventory

Current period costs

Total costs to be accounted for

$0

$0

$0

Cost per equivalent unit

Prior department

Department B

Costs accounted for:

Costs assigned to units transferred out:

Costs from beginning WIP inventory

Current costs added to complete beginning

WIP inventory

Prior department

Department B

Current costs of units started and completed:

Prior department

Department B

Total costs transferred out

$0

$0

$0

Cost of ending WIP inventory

Prior department

Department B

Total costs accounted for

$0

$0

$0

Question Number 4

Douglas Toys is a manufacturer that uses FIFO costing method to account for costs of production. It produces a plastic toy in three separate departments: Molding, Assembling, and Finishing. The following information was obtained for the Assembling Department for the month of September.

Work in process on September 1 had 107,000 units made up of the following:

Amount

Degree of Completion

Prior department costs transferred in from the Molding Department

$

145,520

100

%

Costs added by the Assembling Department

Direct materials

$

96,300

100

%

Direct labor

36,169

70

%

Manufacturing overhead

19,012

50

%

$

151,481

Work in process, September 1

$

297,001

During September, 507,000 units were transferred in from the Molding Department at a cost of $689,520. The Assembling Department added the following costs:

Direct materials

$

437,670

Direct labor

164,241

Manufacturing overhead

74,808

Total costs added

$

676,719

Assembling finished 407,000 units and transferred them to the Finishing Department.

At September 30, 207,000 units were still in work-in-process inventory. The degree of completion of work-in-process inventory at September 30 was as follows:

Direct materials

90

%

Direct labor

80

Manufacturing overhead

30

Required:

(a)

Prepare a production cost report using FIFO.(Round your answer to 2 decimal places.)

DOUGLAS TOYS

Assembling Department

Production Cost Report—FIFO

Flow of Production Units

COMPUTE EQUIVALENT UNITS

Physical Units

Prior Department Costs

Materials

Labor

Manufacturing Overhead

Units to be accounted for:

Beginning WIP inventory

Units started this period

Total units to be accounted for

0

Units accounted for:

Units completed and transferred out:

From beginning inventory

Started and completed currently

Units in ending WIP inventory

Total units accounted for

0

0

0

0

0

Costs

DETAILS

Total Costs

Prior Department Costs

Materials

Labor

Manufacturing Overhead

Costs to be accounted for:

Costs in beginning WIP inventory

Current period costs

Total costs to be accounted

$0

$0

$0

$0

$0

Cost per equivalent unit:

Prior department costs

Materials

Labor

Manufacturing overhead

DETAILS

Total Costs

Prior Department Costs

Materials

Labor

Manufacturing Overhead

Costs accounted for:

Costs assigned to units transferred out:

Costs from beginning WIP inventory

Current costs added to complete beginning WIP inventory:

Prior department costs

Materials

Labor

Manufacturing overhead

Total costs from beginning inventory

$0

Current costs of units started and completed:

Prior department costs

Materials

Labor

Manufacturing overhead

Total costs of units started and completed

$0

Total costs of units transferred out

$0

Costs assigned to ending WIP inventory:

Prior department costs

Materials

Labor

Manufacturing overhead

Total ending WIP inventory

$0

Total costs accounted for

$0

$0

$0

$0

$0

Question Number 5

Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods.

There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 20 percent complete in Department A and 60 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department.

Total

X-10

X-20

X-40

Units started

470

330

300

Units completed in Department A

440

250

180

Units completed in Department B

230

165

Materials

$

390,750

$

35,250

$

115,500

$

240,000

Conversion costs:

Department A

$

274,800

Department B

41,600

Total conversion costs

$

316,400

Required:

(a)

What is the unit cost of each model transferred to finished goods in April?(Do not round intermediate calculations. Round final answers to the nearest dollar amounts and units.)

(b)

What is the balance of work-in-process inventory on April 30 for Department A? Department B?(Do not round intermediate calculations. Round final answers to the nearest dollar amounts and units.)

Department A

Department B

Balance of work-in-process ending inventory

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