Shiffon Electronics manufactures music player. Its costing system uses two cost

Question

Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing

The following information is available for the month of March 2017 for the assembly department

The cost details for the month of march:

prepare process cost report through cost per equivalent units

WIP, beginning inventory (Conversion costs 40% complete) 340 Units units started during march 890 units WIP, ending inventory (Conversion costs 50% complete) 100 units

Explanation / Answer

Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP                    340.00 100%                       340.00                    340.00 100%                       340.00 Units started and completed= 890 - 100                    790.00 100%                       790.00                    790.00 100%                       790.00 ending WIP                    100.00 100%                       100.00                    100.00 50%                          50.00 Equivalent Units                    1,230.00                    1,180.00 Opening WIP Costs               346,000.00               366,000.00         712,000.00 Current Month Costs               703,500.00           1,128,500.00     1,832,000.00 Total costs           1,049,500.00           1,494,500.00     2,544,000.00 Cost per Equivalent units                       853.25                    1,266.53 Ending WIP Units                       100.00                          50.00 Cost of Ending WIP                 85,325.20                 63,326.27         148,651.47 Units completed and transferred out                    1,130.00                    1,130.00 Cost of Units completed and transferred out               964,174.80           1,431,173.73     2,395,348.53 Coststo Account for: Opening WIP            712,000.00 CostsTransferred in          1,832,000.00 Total Coststo Account for        2,544,000.00 CostsAccounted for Costscompleted and Transferred Out        2,395,348.53 Ending WIP            148,651.47 Total Costsaccounted for        2,544,000.00

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