C H 6-1 2 - ACC 405 Chapter 6, Practice Problem 1.2 PDF

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Summary

ACC 405 Chapter 6, Practice Problem 1.2...

Description

2.

Award: 1 out of 1. 1.00 00 point

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Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow:

Work-in-process inventory, May 1 Work-in-process inventory, May 31 Started processing during May

Percent Completed Tons of Salmon Materials Conversion 1,960 80% 70% 3,340 50 30 8,150

Required: 1. Calculate the number of tons completed and transferred out during the month. Units completed and transferred out

6,770

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2. Calculate the number of equivalent units for both materials and conversion for the month of May, assuming that the company uses the weighted-average method. Equivalent Units Materials

8,440

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Conversion

7,772

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3. How would your answer in part 2 change if the percentage of completion in ending inventory were as follows: materials 30%, conversion 40%?

Materials Conversion

Equivalent Units 7,772

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8,106

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References Worksheet

Learning Objective: 06-02 Explain and calculate equivalent units.

Learning Objective: 0601 Identify the types of organizations for which a process costing system best supports the organization's competitive strategy.

Learning Objective: 06-04 Demonstrate the weightedaverage method of process costing.

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Washington State Fisheries, Inc., processes salmon for various distributors. Two departments, processing and packaging, are involved. Data relating to tons of salmon sent to the processing department during May follow:

Work-in-process inventory, May 1 Work-in-process inventory, May 31 Started processing during May

Percent Completed Tons of Salmon Materials Conversion 1,960 80% 70% 3,340 50 30 8,150

Required: 1. Calculate the number of tons completed and transferred out during the month. Units completed and transferred out

6,770

2. Calculate the number of equivalent units for both materials and conversion for the month of May, assuming that the company uses the weighted-average method. Equivalent Units Materials

8,440

Conversion

7,772

3. How would your answer in part 2 change if the percentage of completion in ending inventory were as follows: materials 30%, conversion 40%?

Equivalent Units Materials

7,772

Conversion

8,106

 Explanation: 1. Work-in-process inventory, 5/1 Units started

1,960 8,150

Total units to account for Work-in-process inventory, 5/31

10,110 (3,340)

Units completed and transferred out

6,770

2. Equivalent Units; Weighted-Average Method Materials: Units completed Work-in-process inventory, 5/31 3,340 × 50% Total equivalent units

Conversion: Units completed Work-in-process inventory, 5/31 3,340 × 30% Total equivalent units

6,770 1,670 8,440

6,770 1,002 7,772

3. Equivalent Units; Weighted-Average Method Materials: Units completed Work-in-process inventory, 5/31 3,340 × 30% Total equivalent units

Conversion: Units completed Work-in-process inventory, 5/31 3,340 × 40% Total equivalent units

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6,770 1,002 7,772

6,770 1,336 8,106...