Do Homework - jennifer ACG2071 Managerial Accounting Fall 2017 jennifer sanchez

Question

Do Homework - jennifer ACG2071 Managerial Accounting Fall 2017 jennifer sanchez 11/2/17 10.20 AM Homework: Ch.7 Process Cost Score: 0 of 1 pt E5-27A (similar to) Save Hw Score: 0%, 0 of 5 p Question Help Paint My World prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging. Direct materials are added at the of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May.) Read the requirements Start Complete Choose from any drop-down list and then click Check Answer. 6 parts Clear All Check Answer

Explanation / Answer

Time-line Blending Dept. Started Dyes(9200 Gallons) Completed & transferred to Packaging dept. 6600 gallons Ending WIP 2600 Gallons 2 Blending Department Equivalent units Flow of Production Flow of physical units Direct Materials Conversion costs Units to account for: Beginning work in process 0 Started production 9200 Total physical units to account for 9200 Units accounted for: Completed& transferred to packaging dept. 6600 6600 6600 Ending work in process 2600 2600 780 Total physical units accounted for 9200 9200 7380 2600 units *30% complete=780 3.   Blending Department Direct materials Conversion costs Total Beginning WIP 0 0 0 Costs added during May 5980 2583 8563 Total costs to account for 5980 2583 8563 Cost per equivalent unit(Total costs to account for/Total equivalent units Direct materials Conversion costs Total 5980/9200= 2583/7380= 0.65 0.35 1 4. Assignment of total costs : Direct materials Conversion costs Total a. Completed& Trfd. Out to packg. Dept. 4290 2310 6600 b. Ending WIP Inventory 1690 273 1963 Total 5980 2583 8563 5. Av.cost /gallon trsfd. Out to blending dept.=6600/6600= $ 1/Gallon The managers would want to know this cost so as to assess the value of raw materials--that are inputs for the next process.

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