Because most of the parts for its irrigation systems are standard, HARTSELL MANU
ID: 2469601 • Letter: B
Question
Because most of the parts for its irrigation systems are standard, HARTSELL MANUFACTURING handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Package department which prepares items for sale in kits or individually. The following information is available for the Molding department for January. Work in process beginning: Units in process 22,000 Stage of completion for materials 80% Stage of completion for labor and overhead 30% Costs in work in process inventory: Materials $168,360 Labor 67,564 Overhead 17,270 Total costs in beginning work in process $253,194 Units started into production in January 60,000 Units completed and transferred in January 58,000 Costs added to production: Materials $264,940 Labor 289,468 Overhead 60,578 Total costs added into production in January $614,986 Work in process ending: Units in process 24,000 Stage of completion for materials 50% Stage of completion for labor and overhead 10% Instructions (a) Prepare a Equivalent Units of Production report for HARTSELL MANUFACTURING using the weighted-average method. (b) Prepare a Cost Per Equivalent Unit report for HARTSELL MANUFACTURING using the weighted-average method. (c) Prepare a Costs of Ending Work in Process Inventory and Units Transferred Out report for HARTSELL MANUFACTURING using the weighted-average method. (d) Prepare a Cost Reconciliation report for HARTSELL MANUFACTURING using the weighted-average method.
Explanation / Answer
Beginning work in progress 22000 Completed and transferred 58,000 Started and completed 60000 Ending Work in progress 24,000 units to be accounted 82000 units accounted for 82,000 Calculation of equivalent units physical units Materials % CC % completed and tranferred 58000 58,000 100% 58000 100% Ending Work in progress 24000 12,000 50% 2400 10% Units 82000 70,000 60400 Cost Materials conversion total Beginning WIP 168360 84,834 253,194 Added during the year 264,940 350,046 614,986 total cost $433,300 434,880 $868,180 cost per unit $6.19 7.2 cost transferred to finished goods Materials $359,020.00 Converstion 417600 $776,620.00 Cost of ending WIP Materials $74,280.00 Conversion 17280 $91,560.00 Cost Reconcilation Report Beginning WIP 253,194 Cost added 614,986 Cost to be accounted $868,180 Cost transferred $776,620.00 Ending WIP $91,560.00 Cost accounted for $868,180.00