he Arlene Doll Co. uses a process costing system. Consider the following data fo
ID: 2597456 • Letter: H
Question
he Arlene Doll Co. uses a process costing system. Consider the following data for F1.p Nov. 1 : 8,000 units, 100% completed for direct material 75% completed for conversion costs Surted in November: 10,000 units Transferred to Dept B: 12,000 units W-I-P Nov. 30, 6,000 units, 100% completed for direct material 50% completed for conversion costs COSTS W-1-P Nov. 1: Direct Materials Conversion $9,600 4,800 $15,600 14,400 Costs added in November. Direct Material Use the WEIGHTED AVERAGE method. Prepare a complete process costing schedule A for November. Prepare a set of summarized journal entries for all November transa affecting work-in-process, Dept A including the transfer to Dept B. Overhead was alloca 50% of direct labor costs.Explanation / Answer
1. Quantity schedule and Equivalent units Units to be accounted for: Work-in-process, November 8000 Started into production 10000 Total Units 18000 Equivalent Units Materials Conversion Units % Units % Units accounted for as below: Units completed and transferred out 12000 12000 100 12000 100 Work-in-process, ending 6000 6000 100 3000 50 Total units and EU of production 18000 18000 15000 2. Costs per Equivalent Units Total Cost Materials Conversion costs Whole Unit Costs to be accounted for: Work-in-process, beginning 14400 9600 4800 Costs added during the month 30000 15600 14400 Total Cost (a) 44400 25200 19200 EUs of production (b) 18000 15000 Costs per EU (a) / (b) 1.4 1.28 2.68 3. Cost Reconciliation Total Cost Equivalent Units (EUs) Materials Conversion Cost accounted for as follows: Transferred out (12000 x $2.68) 32160 12000 12000 Work-in-Process, Ending Materials (6000 x $1.40) 8400 6000 Conversion (3000 x $1.28) 3840 3000 Total work-in-process, ending 12240 Total Cost 44400 Please note that the total costs calculated using unit costs should match the total costs calculated in the third step of $44400
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