Question
Process Costing Packaging Department Direct materials are added 70% at the beginning of the process and the remaining 30% are added when the chips are
Process Costing Packaging Department
Direct materials are added 70% at the beginning of the process and the remaining 30% are added when the chips are 50% complete with the packaging process. Direct labor and overhead are added evenly throughout the process.
Table 8 Unit and cost information
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| Cost | |||
| Physical Units | Transferred-in | Direct Materials | Direct Labor | Overhead |
Beg WIP | 1,000 (40% complete) | $5,550 | $110.40 | $210 | $225.80 |
Transferred In | 30,000 | $73,500 |
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End WIP | 2,200 (30% complete) |
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Added during Qtr 1:
Direct Materials -- $4,835.02
Direct Labor 1,580 hrs @ $8.10 per hour
Overhead OH is applied based on predetermined OH rate and actual DL hours
1. Determine the number of units completed during quarter 1.
2. Compute the equivalent units using the weighted average method
3. Compute the cost per equivalent unit using the weighted average method
4. Compute the cost of goods transferred to finished goods inventory
5. Compute the ending balance in WIP, Packaging
Table 10 Actual Results (calculate revenue and COGS)
Units sold | Sales Price | Revenue |
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Units sold | Cost per unit | COGS |
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Table 11 DM Variances (potatoes only)
Price Variance |
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Usage Variance |
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Total Variance |
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Calculations:
Table 12 Direct Labor Variances
Rate Variance |
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Efficiency Variance |
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Total Variance |
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Calculations:
#13 Calculations (Minimum price on special order)
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