Chapter 8 Process Costing WIP inventory-Department T Beginning inventory (15,000

Question

Chapter 8 Process Costing WIP inventory-Department T Beginning inventory (15,000 units, 60% complete with respect to Department T costs) . .. Department T conversion costs. .. Current work (35,000 units started) 53,150 Prior department costs.... . 280,000 209,050 The ending inventory has 5,000 units, which are 20 percent com- plete with respect to Department T costs and 100 percent com- plete for prior department costs. Required Prepare a production cost report using FIFO. 8-40. Prepare a Production Cost Report: Weighted-Average Method (LO 8-2, 3, Refer to the information in Exercise 8-39. Required a. Prepare a production cost report using the weighted-average method h Is the ending inventory higher using FIFO or the weighted-average method? Why? Would you recommend that Lansing use the FIFO method or the weighted-average method? Explain. (LO 8-2,4

Explanation / Answer

PRODUCTION COST REPORT (WEIGHTED AVERAGE) Physical units Equivalent units Prior Department Department T Flow of units: Units to be accounted for: Beginning WIP inventory 15000 Units started this period 35000 Total units to account for 50000 Units accounted for: Completed and transferred out 45000 45000 45000 Units in ending inventory 5000 Prior department 5000 Department T 1000 Total units accounted for 50000 50000 46000 Flow of costs: Total Prior Department Department T Costs to be accounted for: Costs in beginning WIP inventory $          169,150 $          116,000 $           53,150 Current period costs $          489,050 $          280,000 $         209,050 Total costs to be accounted for $          658,200 $          396,000 $         262,200 Cost per equivalent unit Prior department $                 7.92 Department T $                5.70 Costs accounted for: $          612,900 $          356,400 $         256,500 Units completed and transferred out $            45,300 $             39,600 $              5,700 Total costs accounted for $          658,200 $          396,000 $         262,200

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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