Timberline Associates uses the weighted-average method in its process costing sy
ID: 2417775 • 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%
4.Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventoryand costs added during the period.
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%
4.Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventoryand costs added during the period.
Explanation / Answer
1 Units material Conversion Total Beginning WIP, Material 75%,Conversion 50% complete 2400 4.67 6 8400 7200 15600 Material Introduced 20800 97400 97400 Direct labor 85200 85200 Factory Overhead 44400 44400 23200 105800 136800 242600 Units Completed-new introduced 19800 4.59 6 90967.92 118800 209767.9 Beginning WIP 75/50%-already completed 2400 4.67 6 8400 7200 15600 Beginning WIP 25/50%-completed during July 4.59 6 2756.60 7200 9956.60 Closing WIP, 80% material, 60% conversion 1000 4.59 6 3675.47 3600 7275.47 23200 105800 136800 242600 Material % Completed Equivalent Units Conversion% Completed Equivalent Units total conversion cost conversion cost/unit Material cost/unit Units new introduced and completed 19800 100 19800 100 19800 Beginning WIP 40%-completed during July 2400 25 600 50 1200 Closing WIP 1000 80% 800 60% 600 129600/21600 97400/21200 21200 21600 129600 6 4.59
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