Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in

CloverSweet Inc. manufactures a product that goes through two departments prior to completion. The information shown in the table below is available about work in the first department, the Mixing Department, during June:

Percentage Completed
Units Materials Conversion
Work in process, beginning 22,000 80 % 25 %
Started into production 475,000
Completed and transferred out 453,000
Work in process, ending 44,000 50 % 30 %

Materials Conversion
Work in process, beginning $ 17,500 $ 16,500
Cost added during June $ 476,000 $ 163,000

Required:

Assume that the company uses the FIFO method.

1. Determine the equivalent units for June for the first process.

Materials Conversion

Equivalent units of production

2. Compute the costs per equivalent unit for June for the first process. (Round your answers to 3 decimal places.)

Materials conversion

Cost per equivalent unit

3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round intermediate calculations to 3 decimal places.)

Materials Conversion Total

Cost of ending work in process inventory

Cost of Units transferred out

4. Prepare a report that reconciles the total costs assigned to the ending work in process inventory and the units transferred out with the costs in beginning inventory and costs added during the period. (Round intermediate calculations to 3 decimal places.)

Costs to be accounted for

Costs of beginning work in process inventory

Costs added to production during the period

Total costs to be accounted for $

Costs accounted for as follows

Costs of ending work in process inventory

Costs of units transferred out

Total cost accounted for $

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

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions

Question

What is your greatest strength?

Answered: 1 week ago

Question

Describe four issues that affect career management

Answered: 1 week ago