only 9A-11

ll for the month. of material and of conversion costs in the ending inventory nits of material and of conversion costs that were required to com 3 Compute the beginning inventory ete the th number of units started and completed durin plete the begi costs of ending inventory and units transferred out. the month. Equivalent Units-FIFO Method [Lo61 EXERCISE 9A-9 Refer to the data for Alaskan Fisheries, Inc., in Exercise 9-12 Fisher the equivalent units for July for the Clean ing Department assuming that the company the FIFO method of accounting for units. uses ivalent Units; Cost per Equivalent Unit, Applying Costs-FIFO Method 1.06, L07, LO8, LO9 o-fer to the data for the Blending Department of Suns Reeme that the company uses the FIFO method rather than the wo Sunspot Beverages, Lid, in Problem 9-1 method in its process costing system. e. Determine the equivalent units for June for the Blending Department. h Compute the costs per equivalent unit for June for the Blending Department. : Determine the total cost of ending work in process inventory and the total cost of units trans ferred to the next process for the Blending Department in June. 4. Prepare a cost reconciliation report for the Blending Department for June. PROBLEM 9A-11 Equivalent Units; Applying Costs; Cost Reconcililiation Report-FIFO Method 1L.O6 L07, L08, L09] Selzik Company makes super-premium cake mixes that go through two processing departments Blending and Packaging. The following activity was recorded in the Blending Departiment during July in process, July 1 (materials 100% complete, conversion 30% complete) Units started into production. . 10,000 170,000 Production data: Cost data process, July 31 materials 100% complete, conversion 40% complete) Work in process inventory, July 1: 20.00 $8,500 $4,900 Materials cost . Conversion cost. $139,400 $244,200 Cost added during the month: Materials cost Conversion cost All materials are added at the beginning of work in the Blending De the FIFO method in its process costing system. Required 1. Determine the equivalent units for July for the Blending Department. Chapter 9 in the Blending Department. The company 2. Compute the costs per equivalent unit for July for the Blending Department 3. Determine the total cost of ending work in process inventory and the total c cost of units trans ferred to the next process for the Blending Department in July 4. Prepare a cost reconciliation report for the Blending Department for July. CASE 9A-12 Second Department-FIFO Method [L06, LO7, LO8] Refer to the data for Provost Industries in Case 9-19. Assume that the company uses the FIO 2 method in its process costing system. Required: 1. Prepare a report for the Finishing Department for April showing how much cost should have been assigned to the units completed and transferred to finished goods and how m should have been assigned to the ending work in process inventory uch cost 2. As stated in the case, the company experienced an increase in materials prices during April. Would the effects of this price increase tend to show up more under the weighted-average method or under the FIFO method? Why? Losses in Process Costing VE 10 losses osting. From the calculations so far, we have assumed that there has been no losses throug the production process. In reality, losses may occur during production. In this we will examine the treatment of the following two situations in process calculations: 1. Process with normal losses. 2. Process with abnormal losses. Normal Losses Certain losses during some production processes are unavoidable. For process of making shoes, after cutting the shape of the shoes, the leftoeome disposed of. Another example is brewing alcoholic drinks. During distillatito exemple, in the leather has to be distillation, some drink is lost through evaporation. This kind of losses is inherent in the produc cannot normal losses. even with the most efficient managemen We use the earlier example, S element of normal los uction process and i ng hava