Process Costing - Weighted Average General Information The I See The Light Compa
ID: 2585203 • Letter: P
Question
Process Costing - Weighted Average
General Information
The I See The Light Company has a related company that produces the figurines. They use process costing
in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.
The material is added at the beginning of the process. The labor and overhead costs are assumed
to be added uniformly throughout.
Month of January
Selected information for January is presented below. Note that the applied overhead rate was
50% of direct labor costs in the molding department.
Molding Department
Goods in-process as of January 1 were 2,800 figurines at a cost of $29,624.50. Of this amount, $4,312.00 was from
raw materials added, $16,875.00 for labor and $8,437.50 for overhead. These 2,800 figurines were assumed to be
30.00% complete as to labor and overhead.
During January, 25,000 units were started, $39,612.00 of materials and $56,225.00 of labor costs were incurred.
The 7,000 figurines that were in-process at the end of January were assumed to be 10.00% complete to
labor and overhead.
All figurines in January passed inspection.
January
Physical Flow of Units
Work-in-Process - Beginning
2,800 units
Units Started this Period
25,000 units
Units to Account for
27,800 units
Total transferred out
20,800 units
{12.01} This is incorrect (Please assist)
Work-in-Process - Ending
7,000 units
{12.02}
Total Accounted for
27,800 units
Equivalent Units Material (Round to two places, ##,###.##)
27,800.00
{12.03}
Equivalent Units Conversion (Round to two places, ##,###.##)
21,500.00
{12.04}
Total cost of Material (Round to two places, ##.###.##)
$ 43,924.00
{12.05}
Total cost of Conversion (Round to two places, ##.###.##)
$ 109,650.00
{12.06}
Total cost to account for (Round to two places, ##.###.##)
$ 153,574.00
{12.07}
Cost per equivalent unit of Material (Round to two places, ###.##)
$ 1.58
{12.08}
Cost per equivalent unit of Conversion (Round to two places, ###.##)
$ 5.10
{12.09}
Cost of the ending inventory, material and convesion (Round to two places, $###,###.## )
$ 5,150.00
{12.10}
Cost of the units transferred, material and convesion (Round to two places, $###,###.## )
{12.11}(not sure how to calculate the transferred manterial and convesion)
I need assistance with Cell 12.1 and cell 12.11 they are both incorrect
Process Costing - Weighted Average
General Information
The I See The Light Company has a related company that produces the figurines. They use process costing
in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars.
The material is added at the beginning of the process. The labor and overhead costs are assumed
to be added uniformly throughout.
Month of January
Selected information for January is presented below. Note that the applied overhead rate was
50% of direct labor costs in the molding department.
Molding Department
Goods in-process as of January 1 were 2,800 figurines at a cost of $29,624.50. Of this amount, $4,312.00 was from
raw materials added, $16,875.00 for labor and $8,437.50 for overhead. These 2,800 figurines were assumed to be
30.00% complete as to labor and overhead.
During January, 25,000 units were started, $39,612.00 of materials and $56,225.00 of labor costs were incurred.
The 7,000 figurines that were in-process at the end of January were assumed to be 10.00% complete to
labor and overhead.
All figurines in January passed inspection.
January
Physical Flow of Units
Work-in-Process - Beginning
2,800 units
Units Started this Period
25,000 units
Units to Account for
27,800 units
Total transferred out
20,800 units
{12.01} This is incorrect (Please assist)
Work-in-Process - Ending
7,000 units
{12.02}
Total Accounted for
27,800 units
Equivalent Units Material (Round to two places, ##,###.##)
27,800.00
{12.03}
Equivalent Units Conversion (Round to two places, ##,###.##)
21,500.00
{12.04}
Total cost of Material (Round to two places, ##.###.##)
$ 43,924.00
{12.05}
Total cost of Conversion (Round to two places, ##.###.##)
$ 109,650.00
{12.06}
Total cost to account for (Round to two places, ##.###.##)
$ 153,574.00
{12.07}
Cost per equivalent unit of Material (Round to two places, ###.##)
$ 1.58
{12.08}
Cost per equivalent unit of Conversion (Round to two places, ###.##)
$ 5.10
{12.09}
Cost of the ending inventory, material and convesion (Round to two places, $###,###.## )
$ 5,150.00
{12.10}
Cost of the units transferred, material and convesion (Round to two places, $###,###.## )
{12.11}(not sure how to calculate the transferred manterial and convesion)
I need assistance with Cell 12.1 and cell 12.11 they are both incorrect
Explanation / Answer
I checked your solution, cell 12.1 is correct. The incorrect part is cell 12.10 and 12.11. correction is as follows:
12.10 correction:
Amount will be $14,630 computed as;
=(7000 units×$1.58)+(7000×10%×5.10)
=$14,630
12.11 cell:
=(20800×1.58)+(20800×5.10)
=$138,944
Total cost=$14630+138,944
=$153,574
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