Timberline Associates uses the weighted-average method in its process costing sy
ID: 2417772 • Letter: T
Question
Timberline Associates uses the weighted-average method in its process costing system. The following data are for the first processing department for a recent month:
Work in process, beginning:
Units in process……………………………………………………………………………….….2400
Stage of completion as to materials…………………………………………….….%75
Stage of completion as to labor and overhead……………………………….%50
Costs in the beginning inventory:
Materials cost……………………………………………………………………………………..8400
Labor cost…………………………………………………………………………………………..6000
Overhead cost……………………………………………………………………………………1200
Units started into production during the month……………………………….…. 20800
Units completed and transferred out…………………………………………………... 22,200
Costs added to production during the month:
Materials cost……………………………………………………………………….…….……...97400
Labor cost………………………………………………………………………….……….………85200
Overhead cost…………………………………………………………………….……….…….44400
Work in process, ending:
Units in process…………………………..................................................1000
Stage of completion as to materials………………………………………….….…80%
Stage of completion as to labor and overhead…………………………..….60%
.Compute the costs per equivalent unit for June for the first process.
Work in process, beginning:
Units in process……………………………………………………………………………….….2400
Stage of completion as to materials…………………………………………….….%75
Stage of completion as to labor and overhead……………………………….%50
Costs in the beginning inventory:
Materials cost……………………………………………………………………………………..8400
Labor cost…………………………………………………………………………………………..6000
Overhead cost……………………………………………………………………………………1200
Units started into production during the month……………………………….…. 20800
Units completed and transferred out…………………………………………………... 22,200
Costs added to production during the month:
Materials cost……………………………………………………………………….…….……...97400
Labor cost………………………………………………………………………….……….………85200
Overhead cost…………………………………………………………………….……….…….44400
Work in process, ending:
Units in process…………………………..................................................1000
Stage of completion as to materials………………………………………….….…80%
Stage of completion as to labor and overhead…………………………..….60%
.Compute the costs per equivalent unit for June for the first process.
Explanation / Answer
Solution:
Table showing Equivalent production:
Input
Statement of Cost
Costs per equivalent unit = 10.6
Input
Output Particulars Units Particulars Units Opening Stock 2400 Units completed 22200 Units Introduced 20800 Closing Stock 1000 23200 23200Related Questions
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