MOLDING Physical Flow of Units Process Costing-First-In First-Out Work-in-Process - Beginning Units Started this Period Units to Account for Total transferred out Work-in-Process-Ending Total Accounted for Equivalent Units Material (Round to three places, ##.08.388) Equivalent Units Conversion (Round to three places, ##.##.##) Total cost in the Beginning Inventory (Round to two places, #8,898) January 23,800 units (15.01) 25.500.000 (15.02) 22,850.000 (15.03) $ 5,656.00 (15.04) 0 0 Total cost of Material this period (Round to two places, ..) 115 12,240.00 (15.05) Total cost of Conversion this period (Round to two places, ##.###.85) 15 68,550.00 (15.06) Total cost to account for (Round to two places, ##.###.**) 15 86,446.00 (15.07) Cost per equivalent unit of Material this period (Round to seven places, SOON) $ 0.4800000 (15.08) Cost per equivalent unit of Conversion this period (Round to seven places, 8.UUKKOON) $ 3.0000000 (15.09) Cost of the units transferred, material and convesion (Round to two places, $***,**.**) S 82,824.00 (15.10) Cost of the ending inventory, material and convesion (Round to two places, $8,000.00 ) 3,150.00 (15.11) January PART 4.3 MOLDING Physical Flow of Units Process Costing - Weighted Average With Spoilage Work-in-Process - Beginning Units Started this Period Units to Account for Total transferred out Normal spoilage (Roundup to the next unit if needed) Abnormal spoilage Work-in-Process - Ending Total Accounted for Equivalent Units Material (Round to three places, ##.***.***) (17.01) (17.02) (17.03) (17.04) (17.05) (17.06) Equivalent Units Conversion (Round to three places, ## ### ###) (17.07) Total cost of Material (Round to two places, ##.####) Total cost of Conversion (Round to two places, ## ###.##) Total cost to account for (Round to two places, ## ### ##) Cost per equivalent unit of Material (Round to seven places, ###.####***) Cost per equivalent unit of Conversion (Round to seven places, ########) (17.08) (17.09) (17.10) (17.11} (17.12) Cost of the ending inventory, material and convesion (Round to two places, $### ###.## ) (17.13} Cost of the units transferred, material and convesion (Round to two places, $###.###.## ) (17.14} Cost of the abnormal spoilage (Round to two places, $########) (17.15) Process Costing - Weighted Average With Spoilage Mr. Smith, a consultant, has indicated that the Weighted Average method is appropriate our needs. He is concerned about the number of units that failed inspection and the pricing of the good units completed. General Information The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. The industrial engineers have studied our system and have determined that the acceptable loss for every hundred units that pass the inspection point is 5 units. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 2,800 figurines at a cost of $5,656.00. Of this amount, $1,456.00 was from raw materials added, $2,800.00 for labor and $1,400.00 for overhead. These 2,800 figurines were assumed to be 50.00% complete as to labor and overhead. During January, 25,500 units were started, $12,240.00 of materials and $45,700.00 of labor costs were incurred. The 4,500 figurines that were in-process at the end of January were assumed to be 10.00% complete to labor and overhead. While normal spoilage is 5% of the good units completed, 1,428 units failed inspection in January. The units are inspected at the end of the process. PART 4.1 Process Costing - Weighted Average MOLDING Physical Flow of Units Work-in-Process - Beginning Units Started this Period Units to Account for Total transferred out Work-in-Process-Ending Total Accounted for January 23,800 units (13.01) 4,500 units (13.02) Equivalent Units Material (Round to three places, ########) 28.300.000 (13.03) Equivalent Units Conversion (Round to three places, ##.##*.***) 24,250.000 (13.04) Total cost of Material (Round to two places, ##.###.##) Total cost of Conversion (Round to two places, #####.##) Total cost to account for (Round to two places, ##.###.##) 13,696.00 {13.05} $ 72,750.00 (13.06) 86,446.00 {13.07) Cost per equivalent unit of Material (Round to seven places, #*#*#*) $ 0.4839576 (13.08) Cost per equivalent unit of Conversion (Round to seven places, ########) 3.0000000 (13.09) Cost of the units transferred, material and convesion (Round to two places, $########) S 82,918.00 (13.10) Cost of the ending inventory, material and convesion (Round to two places, $###.###.## ) $ 3,527.81 (13.11) I See The Light Projected Income Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable 25,000 lamps @$45.00 @ $28.93 Administrative Expenses $ 1,125,000.00 723,250.00 $ 401,750.00 mission per unit) @$3.15 $ 23,000.00 78,750.00 $101,750.00 41,250.00 $ Total Selling and Administrative Expenses: Net Profit I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 500 @ $9.20 500 @$1.25 0 3000 @ $28.9250 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity 143,000.00 258,750.00 $ 34,710.00 67,500.00 4,600.00 625.00 86,775.00 194,210.00 $ 20,000.00 6,800.00 13,200.00 $ 207,410.00 $ 12,000.00 141,410.00 54,000.00 54,000.00 153,410.00 207.410.00