Question
Process Costing Packaging DepartmenT Direct materials are added 90% at the beginning of the process and the remaining 10% are added when the cereal is
Process Costing Packaging DepartmenT
Direct materials are added 90% at the beginning of the process and the remaining 10% are added when the cereal is 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 | 4,000 (40% complete) | $16,620 | $720 | $359.25 | $160 |
Transferred In | 35,520 | $132,370.40 |
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End WIP | 4,200 (30% complete) |
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Added during Qtr 1:
Direct Materials -- $8,273
Direct Labor 775 hrs @ $11.00 per hour
Overhead OH is applied based on predetermined OH rate and actual DL hours
- Determine the number of units completed during quarter 1
- Compute the equivalent units using the weighted average method
- Compute the cost per equivalent unit using the weighted average method
- Compute the cost of goods transferred to finished goods inventory
- Compute the ending balance in WIP, Packaging
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