A. Using the examples, you worked on in chapter 3, dissect the cost of production sheet and translate it into story form. Based on your records last period the equivalent units of production for direct materials was $16.25 and conversion was $11.32. a. Identify if the change in EUP was an increase or decrease and what amount for each. b. What are some contributing factors to the changes? c. Are these changes good or bad? d. What kind of effects will the fluctuation of the cost of EUP have on the decisions you will be making for the next period? B. Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $125,000) and the transfer to work in process and finished goods, C. Prepare a Work in Process T account. H&L Co CONVERSION Cost of Production Report Department FIFO Equivalent Units of Production UNITS WHOLE UNITS DIRECT MATERIALS Units Charged to production Beginning WIP Inventory in Process, July 1 950.00 Received from Milling Department 15.620.00 Total Units accounted for by Sifting Department 16,570.00 EUP Units to be assigned costs: Direct Materials Beginning WIP 950.00 Started and completed (Transferred to packaging - Beg WI 14.780.00 14.78000 Transferred to Packaging Department 15 230.00 14 280.00 Ending WIP 840.00 840.00 Total Units to be assigned costs 16.570.00 15.620.00 (Must equal total units accounted for by sifting department) Conversion 475.00 14,780 DO 15 255.00 504 00 15,759 00 COSTS Conversion Direct Materials 230,000.00 15.620.00 125.000 DO 15.759.00 7.93 COSTS Cost per equivalent Unit Total costs for July Sifting Department Total Equivelant Units from step 2 Cost per equivalent Unit Costs Assigned to production Cost of Beginning WIP Cost incurred in period (DMDLPOH Total costs to account for Costs allocated to completed and partially completed units Beginning WIP To complete Beginning WIP Cost to complete July WIP Cost of started and completed in period Transferred to packaging department Ending Inventory WIP Total Costs assigned 28,470.00 355.000.00 383,470.00 28,470.00 28,470.00 28,470.00 28,470.00 A. Using the examples, you worked on in chapter 3, dissect the cost of production sheet and translate it into story form. Based on your records last period the equivalent units of production for direct materials was $16.25 and conversion was $11.32. a. Identify if the change in EUP was an increase or decrease and what amount for each. b. What are some contributing factors to the changes? c. Are these changes good or bad? d. What kind of effects will the fluctuation of the cost of EUP have on the decisions you will be making for the next period? B. Prepare the journal entries to show the purchase of materials, the conversion costs (assuming the direct labor was $125,000) and the transfer to work in process and finished goods, C. Prepare a Work in Process T account. H&L Co CONVERSION Cost of Production Report Department FIFO Equivalent Units of Production UNITS WHOLE UNITS DIRECT MATERIALS Units Charged to production Beginning WIP Inventory in Process, July 1 950.00 Received from Milling Department 15.620.00 Total Units accounted for by Sifting Department 16,570.00 EUP Units to be assigned costs: Direct Materials Beginning WIP 950.00 Started and completed (Transferred to packaging - Beg WI 14.780.00 14.78000 Transferred to Packaging Department 15 230.00 14 280.00 Ending WIP 840.00 840.00 Total Units to be assigned costs 16.570.00 15.620.00 (Must equal total units accounted for by sifting department) Conversion 475.00 14,780 DO 15 255.00 504 00 15,759 00 COSTS Conversion Direct Materials 230,000.00 15.620.00 125.000 DO 15.759.00 7.93 COSTS Cost per equivalent Unit Total costs for July Sifting Department Total Equivelant Units from step 2 Cost per equivalent Unit Costs Assigned to production Cost of Beginning WIP Cost incurred in period (DMDLPOH Total costs to account for Costs allocated to completed and partially completed units Beginning WIP To complete Beginning WIP Cost to complete July WIP Cost of started and completed in period Transferred to packaging department Ending Inventory WIP Total Costs assigned 28,470.00 355.000.00 383,470.00 28,470.00 28,470.00 28,470.00 28,470.00
