Exercise 4-6 Equivalent Units and Cost per Equivalent Unit-Weighted-Average Meth

Question

Exercise 4-6 Equivalent Units and Cost per Equivalent Unit-Weighted-Average Method [LO2, LO3]

         

       

The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and overhead. The ending work in process inventory was 50% complete with respect to materials and 25% complete with respect to labor and overhead.

     

     

     

     

       

Exercise 4-9 Cost Assignment; Cost Reconciliation-Weighted-Average Method [LO2, LO4, LO5]

Kenton Industrial Corporation uses the weighted-average method in its process costing system. During April, the Baker Assembly Department completed its processing of 25,800 units and transferred them to the next department. The cost of beginning inventory and the costs added during April amounted to $696,860 in total. The ending inventory in April consisted of 2,800 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

   

  

  

  

  

Prepare a cost reconciliation for April. (Note: You will not be able to break the cost to be accounted for into the cost of beginning inventory and costs added during the month.)

  

Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:

Explanation / Answer

Please put Exercise 4-9 as a separate question.

Units to be accounted Units Beginning work in process 77,000 Units started during the month 7,29,000     Total Units 8,06,000 Equivalent Units Units Accounted Units Material Labor Overhead Units completed and transferred out 7,50,000 7,50,000 7,50,000 7,50,000 Ending work in process 56,000 28,000 14,000 14,000       Total 8,06,000 7,78,000 7,64,000 7,64,000 1. Compute the equivalent units for May’s activity for the first department. Equivalent Units Material Labor Overhead Equivalent units of production (Gallons) 7,78,000 7,64,000 7,64,000 2. Determine the costs per equivalent unit for May. Equivalent Units Cost to be accounted Total Material Labor Overhead Beginning Work in Process $1,43,900 $68,900 $31,500 $43,500 Cost incurred during the month $18,37,220 $9,11,380 $3,88,700 $5,37,140       Total costs $19,81,120 $9,80,280 $4,20,200 $5,80,640 Equivalent units of production (Gallons) 7,78,000 7,64,000 7,64,000 Cost per equivalent unit $2.57 $1.26 $0.55 $0.76

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.