Lesson 3 Homework Complete and submit your work in an Excel file to the dropbox by the Lesson 3 Deadline Below is the assignment: The candy making department at MyChocoCrush Company provides you with the following information for October. All direct materials are placed in process at the beginning of production The facts are: Beginning Work in Process 5,000 units (50% Completed) Purchases of Direct materials for the month 312,000 unit Direct labor Costs incured Factory Overhead Allocated Units Completed (and transferred out) this month 305,000 units Ending Work in Process Unfinished units are 20% complete Amount $40,000 $1,000,000 $200,000 $100,000 REQUIRED: Use the weighted average process cost method to identify and classify the costs below: HINT: Prepare a Production Cost Report first! 1. Determine the number of units of work in process inventory at the end of the month 2 Determine the equivalent units of productions for direct materials and conversion costs 3. Determine direct materials cost per equivalentunit 4. Determine conversion cost per equivalentunit 5. Cost of beginning work in process completed during October 6. Cost of units started and completed during October 7. Cost of ending work in process PRODUCTION COST REPORT Weighted Average method: Equivalent Units of Production Materials Conversion Units transferred to the next department ? Equivalent units in ending work in process inventory Materials ? 1 Conversion ? 2 Equivalent units of production ? 2 3 4 Costs per Equivalent Unit 5 Materials Conversion 16 Cost of beginning work in process inventory 2 ? 17 Costs added during the period ? ? 18 Total cost ? 2 19. Equivalent units of production 2 ? 20 Cost per equivalent unit ? 2 21 22 Costs of Ending Work in Process Inventory and the Units Transferred Out 23 Materials Conversion Total 24 Ending work in process inventory 25 Equivalent units 2 2 26 Cost per equivalent unit ? ? 27 Cost of ending work in process inventory 2 ? 28 29 Units completed and transferred out: 30 Units transferred to the next department 2 ? 31 Cost per equivalent unit ? ? 32 Cost of units transferred out ? ? 33 34 Cost Reconciliation (THIS IS OPTIONAL) 35 Costs to be accounted for 36 Cost of beginning work in process inventory ? 37 Costs added to production during the period 2 38 Total cost to be accounted for ? 39 Costs accounted for as follows 40 Cost of ending work in process inventory ? 41 Cost of units transferred out ? 42 Total cost accounted for ? 43 44 45 46 ca 2 Hints for Lesson 3 Homework Assignment Hint 1: You will want to calculate the UNITS to account for in order to determine your ending inventory in UNITS PRIOR to completing the Equivalent Units of Production section as follows: Beginning inventory UNITS Plus UNITS Added to production Equals Units to accountfor Less UNITS transferred out Equals UNITS in ending inventory Now, per the instructions, it reads that materials are added at the beginning of the period. This means that for materials, the units in ending inventory are 100% completed!ll For conversion, however, they are partially completed as given in the scenario, 20% completed for conversion Hint 2: Remember that CONVERSION COSTS = Direct Labor + Overhead! - Hint 3. The dollar amount given for the Beginning Inventory is for Conversion Costs only!! Here is the logic: Since materials are added at the beginning of the period as the scenario reads, then the materials costs for the beginning inventory had already been accounted for in the prior period! Hint 4: Here are some check figures to check your work Equivalent units for conversion = 307,400 Cost per EU for materials = $3.15
