am%20-%20Fall%20201 /.pdf 8 )Engelhart Enterprises manufactures an protein based

Question

am%20-%20Fall%20201 /.pdf 8 )Engelhart Enterprises manufactures an protein based powder that passes through two departments. Data for December for the first department follow: Pounds Materials abor verhead 48,000 80,000 | $ 75,000 780,000 760,000 30,000 Work in Process, October 1 Gallons started in process Gallons transferred out Work in Process, October 31 100,000 Cost added during October 3 $1,155,000 $370,000 $420,000 The beginning work in process inventory was 80% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 60% complete with respect to materials and 20% complete with respect to labor and overhead. Utilizing the weighted-average method of accounting for units and costs: . . . . Compute the Equivalent units for October's activity for the first department. Determine the costs per equivalent unity for October Compute the Cost of Goods Transferred Compute Ending Inventory Valuation for October 31.

Explanation / Answer

Weighted average cost Beggining units 80000 Transferred out 7,60,000 Started intro production 780000 Ending units 1,00,000 Units accounted for 860000 860000 Equivalent units Material Conversion cost Units transferred                      A 760000 760000 Ending Units 1,00,000 1,00,000 Completion 60% 20% B 60000 20000 Total units 820000 780000 Cost per equivalent units Particulars Material Conversion cost total As at beginning 75000 78000 153000 Added during the month 1155000 790000 1945000 Cost to be accounted for 1230000 868000 2098000 Total eqivalent units 820000 780000 Cost per equivalent unit 1.50 1.11 2.61 Cost per equivalent unit = Cost to be accounted for / Total equivalent units Cost of ending work in progress Conversion cost Particulars Material Total Ending units 1,00,000 1,00,000 Cost per equivalent units 1.50 1.11 Completion 60% 20% Total cost 90000 22256 112256 Cost of goods transferred Conversion cost Particulars Material Total Number of units 760000 760000 Cost per equivalent units 1.50 1.11 2.61 Total amount 1140000 845744 1985744

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