In each case below, fill in the missing amount. Case #1 Work in Process,October

Question

In each case below, fill in the missing amount.

Case #1
Work in Process,October 1 5,000 gallons
Units started during October ?
Units completed during October 15,000 gallons
Work in Process,October 31 2,000 gallons

Case #2

Work in Process,March 1 16,000 tons
Units started during March 3,500 tons
Units completed during March 14,400 tons
Work in Process,March 31 ?

Case #3

Work in Process,December 1 250,000 pounds
Units started during December 900,000 pounds
Units completed during December ?
Work in Process,December 31 350,000 pounds

EXERCISE 3-7. Cost per Equivalent Unit [LO 3] The balance in beginning Work in Process at
Bing Rubber Company for direct labor was $140,000. During the month of March, an additional
$700,000 of direct labor was incurred, and 30,000 pounds of rubber were produced.At the end of
March, 10,000 pounds of rubber were in process and the units were 50 percent complete. At the
start of March, the company had 6,000 pounds of rubber that were 40 percent complete.
Required
Calculate the cost per equivalent unit for labor assuming that labor is added uniformly throughout
the production process.


EXERCISE 3-9. Calculation of Equivalent Units [LO 2] McMillian Tire Company produces tires used
on small trailers.The month of June ended with 500 tires in process, 90 percent complete as to direct
materials,and 50 percent complete as to conversion costs;2,000 tires were transferred to finished goods
during the month,and 2,400 were started during the month.The beginning Work in Process inventory
was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.
Required
Determine the denominators to be used in the calculations of cost per equivalent unit for materials
and conversion costs.


PROBLEM 3-1. Comprehensive Problem, One Department [LO 3, 4] Regal Polish manufactures
a single product in one department and uses a process costing system. At the start of May,
there were 10,000 units in process that were 100 percent complete with respect to direct material
and 60 percent complete with respect to conversion costs (labor and overhead). During the
month, the company began production of 105,000 units. Ending Work in Process Inventory consisted
of 5,000 units that were 100 percent complete with respect to material and 70 percent complete
with respect to conversion costs.
Cost Information Beginning Work in Process Costs Added in May
Direct material $4,000 $76,500
Direct labor 200 8,880
Manufacturing overhead 300 9,915
Total $4,500 $95,295
Required
a. Calculate the cost per equivalent unit for each of the three cost items and in total.
b. Calculate the cost of items completed in May and the cost of ending Work in Process.
c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and
costs added in May.


PROBLEM 3-4. Production Cost Report [LO 2, 3, 4, 5] Aussie Yarn Co. is a U.S. producer
of woolen yarn made from wool imported from Australia. Raw wool is processed, spun, and
finished before being shipped out to knitting and weaving companies. Material is added
in the beginning of processing, and conversion costs are added evenly throughout processing.
Aussie began the month of August with 6,000 units in process that were 100 percent
complete as to materials and 70 percent complete as to labor and overhead. It started 29,000
units into production during the month of August of which 5,000 remained in ending Work
in Process inventory and were 50 percent complete as to conversion costs. The cost data are
as follows:
Beginning work in process:
Direct materials $5,000
Direct labor 1,300
Manufacturing overhead 1,800
$8,100
Costs added during August:
Direct materials $26,500
Direct labor 12,350
Manufacturing overhead 14,450
$53,300
Required
Prepare a production cost report for the month of August.


PROBLEM 3-8. Production Cost Report,Missing Information [LO 2,3,4,5] Marion Chemicals
produces a chemical used as a base in paints.In the manufacturing process, all materials are added
at the start of the process,whereas labor and overhead are added evenly throughout production.
Required
Fill in the missing information in Marion’s Production Cost Report for the month of December.
Marion Chemicals
Production Cost Report
December 2011
Unit Reconciliation
Units in beginning WIP (100% material, 10% conversion costs) 8,000
Units started during December ?
Units to account for ?
Units completed ?
Units in ending WIP (100% material, 20% conversion costs) 4,000
Units accounted for ?
109
Cost per Equivalent Unit Calculation
Material Labor Overhead Total
Cost
Beginning WIP $45,200 $10,500 $26,300 $ 82,000
Cost incurred in December ? ? ? ?
Total ? ? ? ?
Units
Units completed ? ? ?
Equivalent units, ending WIP ? ? ?
Total ? ? ?
Cost per equivalent unit $1.70 $1.32 $2.64 ?
Cost Reconciliation
Total cost to account for $2,896,568
Cost of completed items $2,886,600
Cost of ending WIP
Material $?
Labor ?
Overhead ? ?
Total cost accounted for $2,896,568

Explanation / Answer

Case1 5000+X=15000+2000 X=17000-5000 X=12000 Case2 16000+3500 -14400=5100 Case3 250,000+900,000-350,000=800,000

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