please do part (b2) Exercise 16-15 (Part Level Submission) Santana Mortgage Comp

Question

please do part (b2)

Exercise 16-15 (Part Level Submission) Santana Mortgage Company uses a process cost system to accumulate costs in its Application Department. When an application is completed, it is forwarded to the Loan Department for final processing. The following processing and cost data pertain to September. 1. Applications in process on September 1, 190 2. Applications started in September, 950 3. Completed applications during September, 660 4. Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs. Beginning WIP: $1,240 4,820 Direct materials Conversion costs September costs: Direct materials Direct labor Overhead $4,791 12,350 7,668 Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process. ? (a) Your answer is correct. Determine the equivalent units of service (production) for materials and conversion costs. Materials Conversion Costs The equivalent units of service (production) 1140 948

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 190 Add: Units Started in Process 950 Total Units to account for: 1,140 UNITS TO BE ACCOUNTED FOR: Units started and completed 660 Ending Work in Process 480 Total Units to be accounted for: 1,140 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 660 100% 660 Ending Work in Process 100% 480 60% 288 Total Equivalent units 1,140 948 TOTAL COST TO ACCOUNT FOR: Material Conversion Beginning work in Process 1,240 4,820 Cost Added during May 4,791 20,018 Total Cost to account for: 6,031 24,838 Total Cost to account for: 30,869 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 6,031 24,838 Equivalent Units 1,140 948 Cost per Equivalent unit 5.290351 26.20042 TOTAL COST ACCOUNTED FOR: Units Completed and Transferred out (660 units) Equivalent unit Cost per EU Total Cost Material 660 5.29 3492 Conversion Cost 660 26.2 17292 Total Cost of Units completed and transferred out: 20784 Ending Work in process (480 units) Equivalent unit Cost per EU Total Cost Material 480 5.29 2539.2 Conversison Cost 288 26.2 7545.6 Total cost of Ending Work in process: 10,085 Req a: Material Conversion Equivalent units 1140 948 Req b: Material Conversion Cost per equivalent units 5.29 26.2 Req b-2 Cost Reconciliation Schedule: Cost accounted for: Transferred out 20784 Work in process Sep30 Material 2539 Conversion 7546 10085 Total cost 30869

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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