Can someone post a clean and organized excel version w/ the journal entries as w
ID: 2557742 • Letter: C
Question
Can someone post a clean and organized excel version w/ the journal entries as well for the Weight Average AND FIFO solutions. Please!
The Company uses a single department production process. Materials are added at the start of the production process and labor and overhead are added as indicated. For January 2018, the Company records have the following information:
UNITS:
Beginning WIP: 10,000 units
100% complete for materials, 50% complete for labor; 3% complete for overhead
Units started in process 50,000 units
Units completed 49,000 units
Ending WIP: 11,000 units
100% complete for materials, 60% complete for labor; 20% complete for overhead
PRODUCTION COSTS:
Work in Process, Beginning of the Month:
Materials $ 22,000
Labor 18,000
Overhead 11,000 51,000
Current Month Costs:
Materials $ 320,000
Labor 180,160
Overhead 152,840 653,000
Total Costs: $ 704,000
REQUIRED:
Prepare a Cost of Production Summary using the weighted average method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for units completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately. Prepare the appropriate journal entries at month end.
Prepare a Cost of Production Summary using the FIFO method (calculations for equivalent units of production, cost per equivalent unit of production, total cost for WIP, beginning, units started and completed and WIP, ending). Prepare your calculations for Materials, Labor, and Overhead separately. Prepare the appropriate journal entries at month end.
Explanation / Answer
Weighted Average Method: Units Material Completion Labor Completion Overhead Completion Beginning WIP 10000 100% 50% 3% Units Completed 49000 100% 100% 100% Closing WIP 11000 100% 60% 20% Equivalent Units:= Units Completed & Transferred + Closing Units*% of Completion (Respective) Material Completion Labor Completion Overhead Completion Units Completed 49000 49000 49000 49000 (49000* Respective Completion %) Closing WIP 11000 11000 6600 2200 (11000* Respective Completion %) Total 60000 55600 51200 Material Labor Overhead Total Opening WIP Cost 22000 18000 11000 51000 Added Cost 320000 180160 152840 653000 Total Cost 342000 198160 163840 704000 Equivalent Units 60000 55600 51200 Cost per Equivalent Units 5.70 3.56 3.20 (Total Cost/E Units) Allocation of Costs: Material Labor Overhead Total To Unis Completed & Transferred 279300 174637 156800 610737 To Closing Stock 62700 23523 7040 93263 Total Cost 342000 198160 163840 704000 Material Account Dr. 279300 Labor Account Dr. 174637 Overhead Dr. 156800 To WIP Account 610737 (Being Cost transferred recorded) FIFO Method: Units Material Completion Labor Completion Overhead Completion Beginning WIP 10000 100% 50% 3% Units Completed: 49000 100% 100% 100% From Opening WIP 10000 0% 50% 97% From Current Production 39000 100% 100% 100% Closing WIP 11000 100% 60% 20% Equivalent Units:= Units Completed & Transferred + Closing Units*% of Completion (Respective) Material Completion Labor Completion Overhead Completion Units Completed: 49000 From Opening WIP 10000 0 5000 9700 (10000* Respective Completion %) From Current Production 39000 39000 39000 39000 (39000* Respective Completion %) Closing WIP 11000 11000 6600 2200 (11000* Respective Completion %) Total 50000 50600 50900 Material Labor Overhead Total Opening WIP Cost 22000 18000 11000 51000 Added Cost 320000 180160 152840 653000 Total Cost 342000 198160 163840 704000 Equivalent Units 50000 50600 50900 Cost per Equivalent Units 6.84 3.92 3.22 (Total Cost/E Units) Allocation of Costs: Material Labor Overhead Total Units Completed: From Opening WIP 0 19581 31223 50804 From Current Production 266760 152732 125536 545028 Total Cost for Completed 266760 172313 156759 595832 To Closing Stock 75240 25847 7081 108168 Total Cost 342000 198160 163840 704000 Material Account Dr. 266760 Labor Account Dr. 172313 Overhead Dr. 156759 To WIP Account 595832 (Being Cost transferred recorded)