Part 2 - Process Costing The candy making department at WONKA provides you with
ID: 2554422 • Letter: P
Question
Part 2 - Process Costing The candy making department at WONKA provides you with the following information for August. All direct materials are placed in process at the beginning of production The facts are Beginning WIP Purchases Incurred Allocated Completed Ending WIP Aug. 1 WIP 5,000 units (50% complete) Aug, 31 DM 312,000 units Aug, 31DL Aug, 31 FO Aug, 31305,000 units Aug. 31 Unfinished units are 20% complete $40,000 $1,000,000 $200,000 $100,000 REQUIRED: Use the weighted average process cost method to identify and classify the costs below: Determine the number of units of work in process inventory at the end of the mon Determine the equivalent units of productions for direct materials and costs Determine direct materials cost per equivalent st per equivalent unit. 5. Cost of beginning work in process completed during August Cost of ending work in processExplanation / Answer
5.
Beginning WIP
5000 uniits
50% Complete
Equivalent Units Complete
= 5000 * 50%
2500
Units Completed in August
= 5000 - 2500
2500
Cost of Beginning WIP completed in August
Direct Material
$ 8,013
=1000000*2500/312000
direct Labor
$ 1,639
=200000*2500/305000
Fixed Overhead
$ 820
=100000*2500/305000
Total Cost
$ 10,472
Beginning WIP
5000 uniits
50% Complete
Equivalent Units Complete
= 5000 * 50%
2500
Units Completed in August
= 5000 - 2500
2500
Cost of Beginning WIP completed in August
Direct Material
$ 8,013
=1000000*2500/312000
direct Labor
$ 1,639
=200000*2500/305000
Fixed Overhead
$ 820
=100000*2500/305000
Total Cost
$ 10,472