Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate Equivalent Units, Unit Costs, and Transferred CostsWeighted Average Method Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The

Calculate Equivalent Units, Unit Costs, and Transferred CostsWeighted Average Method

Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the weighted average method. The Work in ProcessBlending Department account for January 2016 follows:

Work in Process-Blending Department
January 1:. inventory (4,000 gallons, 75% finished)
Direct material $62,400
Conversion costs 17,600
Transferred to Bottling Department (70,000 gallons)
January charges:
Direct material (71,000 gallons) 1,136,000
Direct labor 328,000
Manufacturing overhead 372,000
January 31 inventory [ ? gallons, 60% processed]

Required

Calculate the following amounts for the Blending Department:

  1. Number of units in the January 31 inventory.

  2. Equivalent units for materials cost and conversion costs.

  3. January cost per equivalent unit for materials and conversion costs.

  4. Cost of the units transferred to the Bottling Department.

  5. Cost of the incomplete units in the January 31 inventory.

Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.

Kipling Manufacturing,Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016
Equivalent Units
% Work done Direct Materials % Work Done Conversion Costs
Complete/Transferred Answer Answer Answer Answer Answer
Ending Inventory Answer Answer Answer Answer Answer
Total Answer b. Answer Answer b.

Product Cost Report
Direct Materials Conversion Costs
Beginning Inventory Answer Answer Answer
Current Answer Answer Answer
Total Costs to Account For Answer Answer Answer
Total Equivalent Units Answer Answer
Average cost / Equivalent unit (round four decimal places) Answer c. Answer c.
Complete / Transferred:
Direct Materials Answer
Conversion costs Answer
Cost of Goods Manufactured Answer d.
Ending Inventory:
Direct Materials Answer
Conversion costs Answer
Cost of Ending Inventory Answer e.
Total Costs Allocated Answer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is the distribution of B(s) + B(t), s t?

Answered: 1 week ago

Question

Question 20 of 20

Answered: 1 week ago