I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 $ 213.410.00 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159.410.00 $ 213,410.00 Process Costing - First-In First-Out 8 9 General Information 10 The I See The Light Company has a related company that produces the figurines. They use process costing 11 in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. 12 The material is added at the beginning of the process. The labor and overhead costs are assumed 21 to be added uniformly throughout 22 23 24 25 34 35 36 Month of January 37 38 Selected information for January is presented below. Note that the applied overhead rate was 47 50% of direct labor costs in the molding department. 48 49 50 Molding Department 51 60 Goods in process as of January 1 were 3,300 figurines at a cost of $58,740.00. Or this amount, $52,800.00 was from 61 raw materials added, $3.960.00 for labor and $1,980.00 for overhead. These 3,300 figurines were assumed to be 62 60.00% complete as to labor and overhead. 63 64 During January 24,000 units were started, $388,560.00 of materials and $45,440.00 of labor costs were incurred. 73 74 The 6,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to 75 labor and overhead. 76 77 All figurines in January passed inspection 86 87 88 89 90 99 (1201) 273 (12.02) 9 10 Physical Flow of Units 11 12 Work-in-Process - Beginning 13 Units Started this period Units to Account for 24 25 Total transferred out 26 Work-in-Process - Ending 27 Total Accounted for 37 20 800 urte (12.00 (1200 (1205) 27300 39 49 41 51 52 Equivalent Units Material Round to three places 53 54 55 24.000.00 (1206) 22.720.00 unit. (12.07) 66 67 Equivalent Unit Conversion Round to the places 68 69 79 89 81 52,800.00 (1208) 93 Total cost in the Beginning Inventory Round to two places, . 94 96 96 97 107 108 100 Total cost of Material this period Round to two places .. 110 (1209) 68140.00 (12.10) 121 122 123 Total cost of Conversion this period Round for two places 124 125 135 136 137 Tot.cost to account for Round to two places, 138 130 140 141 Cost per gulvalent unit of Material this period (Round town places 450.00 (12.11) (1212) 143 . 12 13 94 95 96 (1209) 68.100.00 (12.10) 107 108 109 Total cost of Materi this period Round to two places 110 111 121 122 123 Tot cost of Conversion this period Round to two places 124 125 135 136 137 Total.cost to count for Round to two places LED 138 139 140 141 Cost per equivalent unit of Materia Ithis period Round to seven places, 142 143 144 145 Cost per equivalent unit of Conversion this period (Round to seven places, 147 143 (12.11) 19.190.000 (12.12) 2285 (12.13) 295.00 (12.14 116311.00 150 151 152 153 Cost of the units transferred, material and convesion Round to the places, S.AE) 154 155 156 157 158 159 160 161 Cost of the ending inventory materwond convoslon (Round to two places TR 163 164 Total Cost accounted for (Round to two places 165 166 167 168 169 170 171 172 (12.15) (1216) 174 175 178 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90,000.00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets $ 20,000.00 6,800.00 13,200.00 $ 213.410.00 54,000.00 54,000.00 $ Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147,410.00 159.410.00 $ 213,410.00 Process Costing - First-In First-Out 8 9 General Information 10 The I See The Light Company has a related company that produces the figurines. They use process costing 11 in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. 12 The material is added at the beginning of the process. The labor and overhead costs are assumed 21 to be added uniformly throughout 22 23 24 25 34 35 36 Month of January 37 38 Selected information for January is presented below. Note that the applied overhead rate was 47 50% of direct labor costs in the molding department. 48 49 50 Molding Department 51 60 Goods in process as of January 1 were 3,300 figurines at a cost of $58,740.00. Or this amount, $52,800.00 was from 61 raw materials added, $3.960.00 for labor and $1,980.00 for overhead. These 3,300 figurines were assumed to be 62 60.00% complete as to labor and overhead. 63 64 During January 24,000 units were started, $388,560.00 of materials and $45,440.00 of labor costs were incurred. 73 74 The 6,500 figurines that were in-process at the end of January were assumed to be 60.00% complete to 75 labor and overhead. 76 77 All figurines in January passed inspection 86 87 88 89 90 99 (1201) 273 (12.02) 9 10 Physical Flow of Units 11 12 Work-in-Process - Beginning 13 Units Started this period Units to Account for 24 25 Total transferred out 26 Work-in-Process - Ending 27 Total Accounted for 37 20 800 urte (12.00 (1200 (1205) 27300 39 49 41 51 52 Equivalent Units Material Round to three places 53 54 55 24.000.00 (1206) 22.720.00 unit. (12.07) 66 67 Equivalent Unit Conversion Round to the places 68 69 79 89 81 52,800.00 (1208) 93 Total cost in the Beginning Inventory Round to two places, . 94 96 96 97 107 108 100 Total cost of Material this period Round to two places .. 110 (1209) 68140.00 (12.10) 121 122 123 Total cost of Conversion this period Round for two places 124 125 135 136 137 Tot.cost to account for Round to two places, 138 130 140 141 Cost per gulvalent unit of Material this period (Round town places 450.00 (12.11) (1212) 143 . 12 13 94 95 96 (1209) 68.100.00 (12.10) 107 108 109 Total cost of Materi this period Round to two places 110 111 121 122 123 Tot cost of Conversion this period Round to two places 124 125 135 136 137 Total.cost to count for Round to two places LED 138 139 140 141 Cost per equivalent unit of Materia Ithis period Round to seven places, 142 143 144 145 Cost per equivalent unit of Conversion this period (Round to seven places, 147 143 (12.11) 19.190.000 (12.12) 2285 (12.13) 295.00 (12.14 116311.00 150 151 152 153 Cost of the units transferred, material and convesion Round to the places, S.AE) 154 155 156 157 158 159 160 161 Cost of the ending inventory materwond convoslon (Round to two places TR 163 164 Total Cost accounted for (Round to two places 165 166 167 168 169 170 171 172 (12.15) (1216) 174 175 178
