Change in Unit Cost from Prior Department and Valuation of Inventory Petrini Pro

Question

Change in Unit Cost from Prior Department and Valuation of Inventory Petrini Products Co. has tvo departments: Mixing and Cooking. At the beginning of the month, Cooking had 4,000 units in process with costs of $8,600 from Mixing, and its own departmental costs of $500 for materials, $1,000 for labor and $2.500 for factory overhead. During the month, 10,000 units were received from Mixing with a cost of $25,000. Cooking incurred costs of $4,250 for materials, s8,500 for labor and $21,250 for factory overhead, and finished 12.000 units. At the end of the month, there were 2,000 units in process, one-half completed. Required Round unit coats to three decimal places and use the rounded value in subsoquent calculations.) 1. Determine the unit cost for the month in Cooking 2.30 per unit 2.40 per unt 2. Determine the adjusted weighted average unit cost for all units received from Mixing 3. Determine the unit cost of goods finished. 5.30 per unit 4. Determine the accumulated cost of the goods finished and of the ending work in process. Accumulated cost of the goods finished is Accumulated cost of the ending work in process is 63876.92

Explanation / Answer

Petrini Products Co. Departments Mixing Cooking Units Amount Beginning Balance 4000 8600 Direct Material 500 Labor 1000 Factory OH 2500 During the Month: 10000 25000 Direct Material 4250 Labor 8500 Factory OH 21250 Finished Units 12000 Closing WIP (1/2 Completed) 2000 Cost 1 Beginning During the Month Total Direct Material 500 4250 4750 Units Completed 12000 Labor 1000 8500 9500 Closing WIP 1000 Factory OH 2500 21250 23750 Total 13000 Total 38000 Equivalent Units 13000 Per Unit Cost 2.92 (38000/13000) 2 Weighted Average Cost of Units received from Mixing: Units Amount Beginning Transfer 4000 8600 During the Month Transfer 10000 25000 Total 14000 33600 Per Unit W Av Cost 2.40 (33600/14000) 3 Total Cost PU of Finished Goods 5.32 (2.92+2.40) 4 Balances: Units Per Unit Cost Amount Accumalated Balance of COGS: 12000 5.32 63,876.92 Accumalated Balance of Closing WIP: 2000 For Mixing Department (E. Units) 2000 2.40 4,800.00 For Cooking Department (E. Units) 1000 2.92 2,923.08 Total 7,723.08

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