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Can someone help me with question 2 and 5 please? It is important that i get full score! Thank you! WEIGHTED-AVERAGE METHOD Larsen Company manufactures
Can someone help me with question 2 and 5 please? It is important that i get full score!
Thank you!
WEIGHTED-AVERAGE METHOD Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Larsen Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. Larsen Company uses the weighted- average method of process costing. Data for the assembly department for October 2014 are as follows: Work-in-process, October 1 *a Started during October Completed during October Work-in-process, October 31 *b Total costs added during October Physical Units (Car Seats) 5,000 Direct Materials Conversion Costs $1,250,000 $402,750 $4,500,000 $2,337,500 20,000 22,500 2,500 *a Degree of completion: direct materials,?%; conversion costs, 60%. *b Degree of completion: direct materials,?%; conversion costs, 70%. REQUIREMENTS: 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. Flow of Production Beginning Work in process Started during current period To account for Completed and transferred out during current period Ending Work in process (2,500x100%) (2,500x70%) Account for Work done to date Physical Units (Car Seats) 5, 000 20,0 00 25,0 00 22,5 00 2, 500 25,0 00 Equivalent Units Direct Material Conversio s n Costs 22,5 00 2,5 00 22,50 0 1,75 0 25,0 00 24,25 0 2. What issues should the manager focus on when reviewing the equivalent units calculation? 3. For each cost category, summarize total assembly department costs for October 2014 and calculate the cost per equivalent unit. Total Productio n Costs $ 1,652,750 Beginning Work in process $ 6,837,500 Costs added in current period $ 8,490,250 Total costs to account for Costs incurred to date Divide by equivalent units of work done to date Cost per equivalent unit of work done to date Direct Material s $ 1,250,00 0 $ 4,500,00 0 $ 5,750,00 0 $ 5,750,00 0 25 ,000 $ 230 Conversio n Costs $ 402,750 $ 2,337,500 $ 2,740,250 $ 2,740,250 24,2 50 $ 113 4. Assign costs to units completed and transferred out and to units in ending work in process. Total Productio n Costs Assignment of costs: Completed & transferred out (22,500 units) Ending Work in process (2,500 units) Total costs accounted for $ 7,717,500 $ 772,750 $ 8,490,250 Direct Materials Conversion Costs $ 5,175,000 (22,500x$23 0) $ 575,000 (2,500x$230 ) $ 5,750,000 $ 2,542,500 (22,500x$11 3) $ 197,750 (1,750x$113 ) $ 2,740,250 5. Prepare a set of summarized journal entries for all October 2014 transactions affecting Work in Process Assembly. Set up a T- account for Work in Process Assembly and post your entries to it
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