Abc Systems
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Date Submitted: 05/14/2013 05:50 AM
ASSIGNMENT 02
Date: 07/05/2013
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EXERCISE 4-6:
Process Costing Journal Entries
Work in Process – Cooking 42,000
Raw materials inventory 42,000
Work in process – Cooking 50,000
Work in process – Molding 36,000
Wages Payable 86,000
Work in process – Cooking 75,000
Work in process – Molding 45,000
Manufacturing overhead 120,000
Work in process – Molding 160,000
Work in process – Cooking 160,000
Finished Goods 240,000
Work in process – Molding 240,000
PROBLEM 4-16:
Interpreting a Report – Weight-average method
1. Equivalent units for the month
Quantities Physical units Equivalent units
Materials Conversion
Units to be account for
Work in process, beginning 30,000
Started into Production 200,000
Total units 230,000
Units accounted for
Transferred out 190,000 190,000 190,000
Work in process, ending 40,000 30,000 (75% complete) 24,000 (60% complete)
Total units 230,000 220,000 214,000
2. Cost per equivalent unit
Unit costs Material Conversion Total
Work in process $67,800 $30,200 $98,000
Costs in month $579,000 $248,000 $827,000
Total cost $646,800 $278,000 $925,000
Equivalent units $220,000 $214,000
Cost per unit $2.94 $1.3 $4.24
$2.94 = 646,800 / 220,000
$1.30 = 278,000 / 214,000
$4.24 = 2.94 + 1.30
3. Units started and completed during April
= 190,000 - 30,000 = 160,000 units
4. No. The manager should not be rewarded. In weighted-average method, the costs of prior period get mixed with the costs of current period. Thus if cost in March is $2.5 and in April is $3.0, the average cost would be less than $3.0 in the weighted-average method.
EXERCISE 4-10:
Second Production Department – Weight-average method
1. Equivalent units for March for pulping and convention
Quantities Physical units Equivalent units
Pulping Conversion
Units to be account for...
