0

More

Next Blog

Create Blo

Accounting Homework Helper

Saturday, March 1, 2014

Exercise 4-7 Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO2, LO3, LO4, LO5]
Papyrutech Corporation produces fine papers in three production departmentsPulping, Drying, and
Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically
and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying
Department, the wet fibers transferred from the Pulping Department are laid down on porous webs,
pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is
coated, cut, and spooled onto reels. The company uses the weighted-average method in its process
costing system. Data for October for the Drying Department follow:

Units
4,000
6,000

Work in process inventory, October 1

Work in process inventory, October 31

Percent Completed
Pulping
Conversion
100%
60%
100%
75%

Pulping cost in work in process inventory, October 1

Conversion cost in work in process inventory, October 1
Units transferred to the next production department
Pulping cost added during October
Conversion cost added during October

$
$

1,500
400
146,000
$ 59,300
$ 22,100

No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers
transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches;
each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper
that is passed on to the Finishing Department.
Required:
1. Determine the equivalent units for October for pulping and conversion.

Equivalent units of production

Pulping
152,000

Conversion
150,500

2. Compute the costs per equivalent unit for October for pulping and conversion. (Round your cost per
equivalent unit answers to 4 decimal places. Omit the "$" sign in your response.)

Cost per equivalent unit

Pulping
.4000

2014 (167)

Conversion
.1495

July (1)

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to
the Finishing Department in October. (Round your cost per equivalent unit calculations to 4
decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in
your response.)

Cost of ending work in process inventory

Cost of units completed and transferred out

$
$

Pulping
2,400
58,400

$
$

Conversion
673
21,827

$
$

Total
3,073
80,227

4. Prepare a cost reconciliation report for the Drying Department for October. (Round your answers to
the nearest dollar amount. Omit the "$" sign in your response.)
Cost Reconciliation
Costs to be accounted for:
Cost of beginning work in process inventory
Costs added to production during the period

1,900
81,400

Total cost to be accounted for

83,300

Costs accounted for as follows:

Cost of ending work in process inventory
Cost of units completed and transferred out

3,073
80,227

Total cost accounted for

83,300

Explanation:
Weighted-Average Method
1.

Equivalent units of production

Blog Archive

April (54)
March (101)
Exercise 9-19 Flexible
Budget Performance
Report i...
Exercise 9-18 Flexible
Budget Performance
Report [...
Exercise 9-17 Flexible
Budgets and Revenue
and Spe...
Exercise 9-16 Working
with More Than One
Cost Driv...
Exercise 9-15 Critique a
Report; Prepare a
Perform...
Exercise 9-14 Flexible
Budget [LO1]Pierr
Manufactu...
Exercise 9-13 Flexible
Budget Performance
Report [...
Exercise 9-12 Prepare a
Report Showing
Revenue and...
Exercise 9-10 Flexible

Pulping
146,000

Transferred to next department

Ending work in process:
Pulping: 6,000 units 100% complete
Conversion: 6,000 units 75% complete

Conversion
146,000

6,000
4,500

Equivalent units of production

152,000

150,500

Cost per equivalent unit

Cost of beginning work in process

Cost added during the period

Pulping
$ 1,500
59,300

Conversion
$
400
22,100

Total cost (a)

$ 60,800

$ 22,500

Equivalent units of production (b)

Cost per equivalent unit, (a) (b)

152,000
0.40

150,500
$ 0.1495

Problem 8-26 Completing

a Master Budget [LO2,
LO4,...
Problem 8-24 Cash
Budget with Supporting
Schedules...

Cost of ending work in process inventory and units transferred out

Pulping

Conversion

Total

4,500
$ 0.1495
$
673

$ 3,073

146,000
$
0.40
$ 58,400

146,000
$ 0.1495
$ 21,827

$ 80,227

$
$

Cost of beginning work in process inventory ($1,500 + $400) = $1,900

Costs added to production during the period ($59,300 + $22,100) = $81,400

How did you get all of those answers?

Reply

Enter your comment...

Problem 8-17 Cash Budget

with Supporting
Schedules...
Exercise 8-14 Schedules of
Expected Cash
Collectio...
Exercise 8-13 Production
and Direct Materials
Budg...

Cost reconciliation

austin king June 1, 2014 at 1:10 PM

Problem 8-19 Integration

of Sales, Production,
and...
Problem 8-18 Cash
Budget with Supporting
Schedules...

6,000
0.40
2,400

4.

1 comment:

Exercise 9-9 Flexible

Budget [LO1]Auto
Lavage is a...

Exercise 9-4 Prepare a

Flexible Budget
Performance...

3.

Posted by Accounting Homework Help at 12:40 PM

Exercise 9-11 Prepare a

Report Showing
Activity Va...

Exercise 9-8 Flexible

Budgets and Activity
Varianc...

2.

Ending work in process inventory:

Equivalent units of production
Cost per equivalent unit
Cost of ending work in process inventory
Units completed and transferred out:
Units transferred to the next department
Cost per equivalent unit
Cost of units completed and transferred out

Budget [LO1]Auto
Lavage is ...

Recommend this on Google

Exercise 8-12 Direct Labor

and Manufacturing
Overh...
Exercise 8-11 Direct
Materials and Direct
Labor Bu...
Exercise 8-9 Budgeted
Balance Sheet
[LO10]The mana...
Exercise 8-5
Manufacturing
Overhead Budget
[LO6]Th...
Exercise 8-4 Part
1Required:1.Complete
the company...
Exercise 8-3 Direct
Materials Budget
[LO4]Micro Pr...

Comment as:

Publish

Google Account

Problem 7-17 Comparing

Traditional and
Activity-Ba...

Preview

Exercise 7-15 Calculating

and Interpreting
Activit...
Exercise 7-14 Cost
Hierarchy [LO1]Green
Glider Cor...
Exercise 7-13 SecondStage Allocation and
Margin C...
Exercise 7-12 Computing
ABC Product Costs
[LO3, LO...
Exercise 7-11
Comprehensive
Activity-Based
Costing...
Exercise 7-10 Activity
Measures [LO1]Various

activ...
Exercise 7-9 Customer
Profitability Analysis
[LO3,...
Exercise 7-7 First-Stage
Allocations [LO2]The
oper...
Exercise 7-6 Second-Stage
Allocation to an Order
[...
Exercise 7-5 Product and
Customer Profitability
An...
Newer Post
Subscribe to: Post Comments (Atom)

Home

Older Post

Exercise 7-4 Second-Stage

Allocation [LO4]Larner
C...
Exercise 7-3 Compute
Activity Rates [LO3]As
You Li...
Exercise 7-2 First-Stage
Allocation
[LO2]VaultOnWh...
Problem 6-26 Segmented
Income Statements
[LO4]Vega...
Problem 6-23
Restructuring a
Segmented Income
Stat...
Problem 6-22 Absorption
and Variable Costing;
Prod...
Problem 6-21 Prepare and
Reconcile Variable
Costin...
Problem 6-17 Variable and
Absorption Costing
Unit ...
Exercise 6-13 Variable
Costing Income
Statement; R...
Exercise 6-12 Variable and
Absorption Costing
Unit...
Exercise 6-10 Absorption
Costing Unit Product
Cost...
Exercise 6-9 Variable
Costing Unit Product
Cost an...
Exercise 6-8 Segmented
Income Statement
[LO4]Micha...
Exercise 6-7 Variable and
Absorption Costing
Unit ...
Exercise 6-4 Basic
Segmented Income
Statement [LO4...
Exercise 6-2 Variable
Costing Income
Statement; Ex...
Exercise 6-1 Variable and
Absorption Costing
Unit ...
Problem 5-31 Changes in
Fixed and Variable
Costs; ...
Problem 5-30 Break-Even
and Target Profit
Analysis...
Problem 5-26 Changes in
Cost Structure; BreakEven...
Problem 5-25 Break-Even

Analysis; Pricing [LO1,

LO...
Problem 5-23 Sales Mix;
Break-Even Analysis;
Margi...
Problem 5-21 Basic CVP
Analysis [LO1, LO3,
LO4, LO...
Problem 5-20 Basics of
CVP Analysis; Cost
Structur...
Problem 5-19 Basic CVP
Analysis; Graphing
[LO1, LO...
Exercise 5-16 Break-Even
and Target Profit
Analysi...
Exercise 5-15 Operating
Leverage [LO4,
LO8]Superio...
Exercise 5-12 Break-Even
and Target Profit
Analysi...
Exercise 5-11 Break-Even
Analysis; Target Profit;
...
Problem 4-18 Interpreting
a Report-WeightedAverag...
Problem 4-16 Cost Flows
[LO1]Natures Way,
Inc., k...
Problem 4-14
Comprehensive
Problem-WeightedAverag...
Problem 4-13
Comprehensive
Problem WeightedAverag...
Exercise 4-12 Equivalent
Units-WeightedAverage Me...
Exercise 4-11 Equivalent
Units and Cost per
Equiva...
Exercise 4-10 Equivalent
Units-WeightedAverage Me...
Exercise 4-9 Cost
Assignment; Cost
Reconciliation-...
Exercise 4-7
Comprehensive
Exercise; Second
Produc...
Exercise 4-6 Equivalent
Units and Cost per
Equival...
Exercise 4-5 Cost
Reconciliation ReportWeighted-A...
Exercise 4-4 Applying
Costs to UnitsWeighted-Aver...
Exercise 4-3 Cost Per
Equivalent UnitWeighted-Ave...
Exercise 4-2 Computation
of Equivalent UnitsWeigh...
Problem 3-23 T-Account
Analysis of Cost Flows
[LO1...
Problem 3-22 Schedules

of Cost of Goods
Manufactur...
Problem 6-17 Variable and
Absorption Costing
Unit ...
Problem 3-21
Predetermined
Overhead Rate;
Disposit...
Exercise 3-19 Applying
Overhead; Journal
Entries; ...
Problem 6-22 Absorption
and Variable Costing;
Prod...
Exercise 3-16 Applying
Overhead; Journal
Entries; ...
Exercise 3-13 Applying
Overhead; Cost of
Goods Man...
Exercise 3-12 Computing
Predetermined
Overhead Rat...
Exercise 3-9 Applying
Overhead to a Job
[LO2]Winst...
Exercise 3-8 Schedules of
Cost of Goods
Manufactur...
Exercise 3-7 Underapplied
and Overapplied
Overhead...
Exercise 3-6 Schedules of
Cost of Goods
Manufactur...
Exercise 3-6 Schedules of
Cost of Goods
Manufactur...
Exercise 3-3 Computing
Job Costs [LO3]Weaver
Compa...
Exercise 3-2 Apply
Overhead [LO2]Westan
Corporatio...
Exercise 3-1 Compute the
Predetermined
Overhead Ra...
Problem 2-24 Cost
Classification and Cost
Behavior...
Problem 2-16 Variable
and Fixed Costs;
Subtleties ...
Problem 2-18 Cost
Behavior; High-Low
Method; Contr...
Problem 2-14
Contribution Format
versus Traditiona...
February (11)

Simple template. Template images by luoman. Powered by Blogger.