Problem 6 for Dept. A The Arlene Doll Co uses a process costing system C the fol

Question

Problem 6 for Dept. A The Arlene Doll Co uses a process costing system C the following Consider UNITS W-1-P Nov 8,000 units, 100% completed for direct merial 1 79% completed fr omversion costs Started in November: 10,000 units Transferred to Dept B 12,000 units W-I-P Nov 30 6,000 units, 100 % completed for direct matial 50% mpleted for conversion costs COSTS W-1-P Now. 1: Direct Materials $9,600 4,800 $15,600 14,400 Costs added in November: Direct Material Use the FIFmehod Pro ea complete process costing schedule for Dept. A fr Novembe

Explanation / Answer

A Statement of Equivalent Production: Input (Units) Particulars Output Units Equivalent Production Material Conversion % Units % Units 18000 Completed 12000 100 12000 100 12000 Closing Work in process 6000 100 6000 50 3000 18000 18000 18000 15000 B Statement Showing Cost for each element: Particulars Material Labor Total a Opening WIP 9600 4800 14400 b Cost incurred during the month 15600 14400 30000 c Total Cost (a+b) 25200 19200 44400 d Equivalent Units 18000 15000 e Cost per equivalent unit (c/d) 1.4 1.28 2.68 C Statement of Apportionment of Cost: a Value of Output Transferred 12000*2.68 32160 b Value of Closing Work in Process Material 6000*100%*1.4 8400 Conversion 6000*50%*1.28 3840 12240 c Total Cost (a+b) 44400 D Department A a/c Particulars Units Amount Particulars Units Amount To Opening WIP 8000 14400 By Completed Units 12000 32160 To Materials 10000 15600 By Closing WIP 6000 12240 To Conversion 14400 44400 44400

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