Cost Accounting Final Exam Review Sheet Process Costin Problem Handy Helpers the
ID: 2429736 • Letter: C
Question
Cost Accounting Final Exam Review Sheet Process Costin Problem Handy Helpers the company's accountig records eflected the followinyg lufactuiers produces temal glovesin a process cost system. Duing December 2015, handi ( 100% complete as to material 30% complete as to direct labor 60% complete as to overhead) 12,000 units 90,000 units Units started during the month Ending WIP Inventory (100% complete as to material 40% complete as to direct labor 80% complete as to overhead) 20,000 units Dunng Cost December l $ 13,020 $ 1,908 $4,636 ecember omponent Direct Material Direct Labor Overhead 90,000i 45,792' 70,824 Required: For December, prepare a cost of production report, assuming that the company uses the weighted average method Prepare the journal entry to transfer goods from WIP to FGExplanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 12,000 Add: Units Started in Process 90,000 Total Units to account for: 102,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 82,000 Ending Work in Process 20,000 Total Units to be accounted for: 102,000 Equivalent Units: Material Cost Labour Overheads % Completion Units % Completion Units % Completion Units Units started and completed 100% 82,000 100% 82,000 100% 82,000 Ending Work in Process 100% 20,000 40% 8,000 80% 16,000 Total Equivalent units 102,000 90,000 98,000 TOTAL COST TO ACCOUNT FOR: Material Labour Overheads Beginning work in Process 13,020 1,908 4,636 Cost Added during May 90,000 45,792 70,824 Total Cost to account for: 103,020 47,700 75,460 Total Cost to account for: 226,180 COST PER EQUIVALENT UNIT: Material Labour Overheads Total cost added during the year 103,020 47,700 75,460 Equivalent Units 102,000 90,000 98,000 Cost per Equivalent unit 1.01 0.53 0.77 TOTAL COST ACCOUNTED FOR: Units started and Transferred out (82000 units) Equivalent unit Cost per EU Total Cost Material 82,000 1.01 82820 Labour 82,000 0.53 43460 Overheads 82,000 0.77 63140 Total Cost of Units completed and transferred out: 189420 Ending Work in process (20,000 units) Equivalent unit Cost per EU Total Cost Material 20,000 1.01 20200 Labour 8,000 0.53 4240 Overheads 16,000 0.77 12320 Total cost of Ending Work in process: 36,760 Req b: Finished Goods inventory Account Dr. 189420 Work in process inventory Account 189420