Question
Baroche Company uses the weighted-average method in its process costing system. It has two processing departments, Department 1 and 2. Products completedin Department 1 are
Baroche Company uses the weighted-average method in its process costing system. It has two processing departments, Department 1 and 2. Products completedin Department 1 are transferred out to Department 2. Products completed in Department 2 are transferred out to Finished Goods Inventory.Direct materials (DM) are added at the beginning of the manufacturing process in Department 1. Data from the month of July for each department are as follows:
Department 1 | Department 2 | |
Information about physical units: | ||
Beginning work-in-process inventory (in units) | 150,000 [80% completed as to conversion costs (CC)] | 300,000 (70% completed as to DM; 40% completed ad to CC) |
Units started/transferred in duringJuly | 500,000 | (?) |
Units completed & transferred outduring July (in units) |
400,000 |
Unknown (b) |
Ending work-in-process inventory (in units) | Unknown (a) (50% completed as to CC) | 200,000 (80% completed as to DM; 30% completed as to CC) |
Information aboutcosts: | ||
Beginning work-in-process inventory ($) |
$202,500 DM; $360,000 CC | $1,200,000 TI costs; $280,000 DM; $220,000 CC |
DM costs ($) added during July | $675,000 | $314,000 |
CC ($) addedduring July | $1,215,000 | $452,000 |
Units completed & transferred outduring July (in $) |
$1,740,000 |
Unknown (d) |
Ending work-in-process inventory (in $) | Unknown (c) | Unknown (e) |
Required:
- Compute the amountof unknown (a) in the table above. (4 marks)
- Compute the amountof unknown (b) in the table above. (4 marks)
- Compute the amountof unknown (c) in the table above. (4 marks)
- Compute the amountof unknown (d) in the table above. (14 marks)
- Compute the amount of unknown (e) in the table above. (4 marks)
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