Revised Problem 4-29 Moravia Company processes and packages cream cheese. The fo
ID: 2336233 • Letter: R
Question
Revised Problem 4-29 Moravia Company processes and packages cream cheese. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process. Work in process, June 1 - 60,000 units: Direct material: 100% complete cost of 110,000 Conversion: 30% complete, cost of 43,000 Balance in work in process, June 1 153,000 Units started during June 180,000 Units completed during June and transferred out to finished-goods inventory 210,000 Work in process, June 30: Direct material: 100% complete Conversion: 80% complete Costs incurred during June: Direct material 420,000 Conversion costs: Direct labor 93,250 Applied manufacturing overhead 283,400 Total conversion costs 376,650 Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing. 1. Analysis of physical flow of units. 2. Calculation of equivalent units. 3. Computation of units costs. 4. Analysis of total costs. 5. Construct an Excel spreadsheet and show all of the preceding requirements Show how the solution would change if the following data change: June 1 work-in-process costs were $84,000 for direct material and $26,000 for conversion. Revised Problem 4-29 Moravia Company processes and packages cream cheese. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process. Work in process, June 1 - 60,000 units: Direct material: 100% complete cost of 110,000 Conversion: 30% complete, cost of 43,000 Balance in work in process, June 1 153,000 Units started during June 180,000 Units completed during June and transferred out to finished-goods inventory 210,000 Work in process, June 30: Direct material: 100% complete Conversion: 80% complete Costs incurred during June: Direct material 420,000 Conversion costs: Direct labor 93,250 Applied manufacturing overhead 283,400 Total conversion costs 376,650 Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing. 1. Analysis of physical flow of units. 2. Calculation of equivalent units. 3. Computation of units costs. 4. Analysis of total costs. 5. Construct an Excel spreadsheet and show all of the preceding requirements Show how the solution would change if the following data change: June 1 work-in-process costs were $84,000 for direct material and $26,000 for conversion.Explanation / Answer
Answer
Units Reconciliation
Units to account for:
Beginning WIP
60,000
Units started this period
180,000
Total Units to account for
$ 240,000.00
Total Units accounted for:
Completed & Transferred out
210,000
Ending WIP
30,000
Total Units accounted for
$ 240,000.00
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
210,000
100%
210,000
100%
210,000
Units of ENDING WIP
30,000
100%
30,000
80%
24,000
Equivalent Units of Production
240,000
234,000
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 110,000.00
$ 43,000.00
Cost incurred during the period
$ 420,000.00
$ 376,650.00
Total Costs
Costs
$ 530,000.00
Costs
$ 419,650.00
Total Cost to account for:
Cost of beginning WIP
$ 153,000.00
Costs incurred this period
$ 796,650.00
Total Cost to account for
$ 949,650.00
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
210,000
$ 2.21
$ 464,100.00
- Conversion
210,000
$ 1.79
$ 375,900.00
Total Cost transferred Out
$ 840,000.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
30,000
$ 2.21
$ 66,300.00
- Conversion
24,000
$ 1.79
$ 42,960.00
Total cost of ending WIP
$ 109,260.00
Total costs accounted for
$ 949,260.00
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
210,000
100%
210,000
100%
210,000
Units of ENDING WIP
30,000
100%
30,000
80%
24,000
Equivalent Units of Production
240,000
234,000
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 84,000.00
$ 26,000.00
Cost incurred during the period
$ 420,000.00
$ 376,650.00
Total Costs
Costs
$ 504,000.00
Costs
$ 402,650.00
Equivalent units of production
EUP
240,000
EUP
234,000
Cost per EUP
$ 2.10
$ 1.72
Total Cost to account for:
Cost of beginning WIP
$ 110,000.00
Costs incurred this period
$ 796,650.00
Total Cost to account for
$ 906,650.00
Total costs accounted for [calculated below]
$ 906,480.00
Difference due to rounding cost/unit
$ 170.00
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out
EUP
Cost per EUP
Total Cost
- Direct Materials
210,000
$ 2.10
$ 441,000.00
- Conversion
210,000
$ 1.72
$ 361,200.00
Total Cost transferred Out
$ 802,200.00
Costs of Ending WIP:
EUP
Cost per EUP
Total Cost
- Direct Materials
30,000
$ 2.10
$ 63,000.00
- Conversion
24,000
$ 1.72
$ 41,280.00
Total cost of ending WIP
$ 104,280.00
Total costs accounted for
$ 906,480.00
Units Reconciliation
Units to account for:
Beginning WIP
60,000
Units started this period
180,000
Total Units to account for
$ 240,000.00
Total Units accounted for:
Completed & Transferred out
210,000
Ending WIP
30,000
Total Units accounted for
$ 240,000.00
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