MANAGERIAL ACCOUNTING DISCUSSION PROBLEM 7 PROCESS COSTING-SINGLE DEPARTMENT Van Buren Company manufactures a product that uses a process cost system to accumulate its costs of production. The following information is available for the month of February regarding costs of production for this product. VAN BUREN COMPANY COSTS OF PRODUCTION FOR PROCESS COSTING ANALYSIS FOR MONTH OF FEBRUARY Beginning WIP: Direct Materials 40,000 Conversion Costs 90,000 Current Period: Direct Materials 375,900 Conversion Costs 575,250 The company had 5,000 units in beginning work in process inventory which were 80% complete as to materials and 40% complete as to conversion costs; 35,000 units were completed during the month; and there were 8,000 units remaining in the ending work in process inventory which were 60% complete as to materials and 30% complete as to conversion costs. REQUIRED: (1) Using the attached schedules, prepare a cost of production report for Van Buren Company for the month of February, assuming the company uses a FIFO cost flow assumption for its inventories. Round all costs per equivalent unit to four decimal places and all other dollar amounts to the nearest whole dollar. Using the attached schedules, prepare a cost of production report for Van Buren Company for the month of February, assuming the company uses an average cost flow assumption for its inventories. Round all costs per equivalent unit to five decimal places and all other dollar amounts to the nearest whole dollar. VAN BUREN COMPANY SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS--FIFO FOR MONTH OF FEBRUARY Equivalent Units Physical Direct Conversion Units Materials Costs Units To Account For: Beginning WIP Inventory Units Started During Period Total Units To Account For Units Accounted For: Units Completed During Period: From Beginning WIP Inventory Units Started and Completed During Period Total Units Completed During Period Units in Ending WIP Inventory Total Units Accounted For 11:49 LOV VOLTE + Discussion Problem... a . 20% A : VAN BUREN COMPANY UNIT COST ANALYSIS SCHEDULE--FIFO FOR MONTH OF FEBRUARY Direct Conversion Materials Costs Total Costs Costs To Account For: Costs From Beginning WIP Inventory Current Period Costs Total Costs To Account For Divided By Equivalent Units Cost Per Equivalent Unit 11:49 LOV VOLTE 12. + Discussion Problem... a A 20% : VAN BUREN COMPANY COST SUMMARY SCHEDULE--FIFO FOR MONTH OF FEBRUARY Direct Conversion Materials Costs Costs Accounted For: Costs From Beginning WIP Inventory Total Costs To Complete Beginning WIP Inventory: Direct Materials Conversion Costs Units Started and Completed During Period: Direct Materials Conversion Costs Total Cost of Units Completed and Transferred to Finished Goods Ending Work in Process Inventory: Direct Materials Conversion Costs Total Cost of Ending Work in Process Total Costs Accounted For Total Costs VAN BUREN COMPANY UNIT COST ANALYSIS SCHEDULE-AVERAGE COST FOR MONTH OF FEBRUARY Direct Conversion Materials Costs Costs To Account For: Costs From Beginning WIP Inventory Current Period Costs Total Costs To Account For Divided By Equivalent Units Cost Per Equivalent Unit VAN BUREN COMPANY SCHEDULE OF PHYSICAL AND EQUIVALENT UNITS--AVERAGE COST FOR MONTH OF FEBRUARY Physical Units Equivalent Units Direct Conversion Materials Costs Units To Account For: Beginning WIP Inventory Units Started During Period Total Units To Account For Units Accounted For: Units Completed During Period: From Beginning WIP Inventory Units Started and Completed During Period Total Units Completed During Period Units in Ending WIP Inventory Total Units Accounted For VAN BUREN COMPANY COST SUMMARY SCHEDULE-AVERAGE COST FOR MONTH OF FEBRUARY Direct Materials Conversion Costs Total Costs Costs Accounted For: Costs From Beginning WIP Inventory To Complete Beginning WIP Inventory: Direct Materials Conversion Costs Units Started and Completed During Period: Direct Materials Conversion Costs Total Cost of Units Completed and Transferred to Finished Goods Ending Work in Process Inventory: Direct Materials Conversion Costs Total Cost of Ending Work in Process Total Costs Accounted For