Work in proc s. June 1—50.000 units — Piscataway Plastics Company manufactures highly specialized plastic that used extensively the automobile
General StudiesGeneralWorked Solution
Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.
Work in proc s. June 1—50.000 units:
Direct material: 100% complete cost of ……………………………………. $120,000
Conversion : 40% complete, cost of ……………………………………….. 34,400
Balance in work in process, June 1 ………………………………………… $154,400
Units started during June ………………………………………………….. 200,000
Units completed during June and
transferred out to flushed-goods inventory ……………………………….. 190,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 60% complete
Costs incurred during June:
Direct material ……………………………………………………………. $492,500
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Total conversion costs ……………………………………………………. $349,800
Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.
1. Analysis of physical flow of units.
2. Calculation of equivalent units.
3. Computation of unit costs.
4. Analysis of total costs.
SOLUTION
1.
Physical Units
Work in process, June 1
50,000
Units started during June
200,000
Total units to account for
250,000
Units completed and transferred out during June
190,000
Work in process, June 30
60,000
Total units accounted for
250,000
2.
Physical Units
Percentage of Completion with Respect to Conversion
Percentage of Completion with Respect to Conversion
Equivalent Units
Equivalent Units
Equivalent Units
Equivalent Units
Physical Units
Percentage of Completion with Respect to Conversion
Percentage of Completion with Respect to Conversion
Direct Material
Direct Material
Conversion
Conversion
Work in process, June 1
50,000
40%
40%
Units started during June
200,000
200,000
Total units to account for
250,000
250,000
Units completed and transferred out during June
190,000
190,000
100%
190,000
190,000
190,000
190,000
Work in process, June 30
60,000
60,000
60%
60,000
36,000
36,000
36,000
Total units accounted for
250,000
250,000
Total equivalent units
250,000
226,000
226,000
226,000
3.
Direct Material
Direct Material
Conversion
Conversion
Total
Work in process, June 1
$120,000
$ 34,400
$ 34,400
$154,400
$154,400
Costs incurred during June
492,500
349,800
349,800
842,300
842,300
Total costs to account for
$612,500
$384,200
$384,200
$996,700
$996,700
Equivalent units
250,000
226,000
226,000
Costs per equivalent unit
$2.45
$1.70
$1.70
$4.15
$4.15
4.
Cost of goods completed and transferred out during June:
Cost of goods completed and transferred out during June:
Cost of goods completed and transferred out during June:
190,000x$4.15
190,000x$4.15
$788,500
Cost remaining in June 30 work-in-process inventory:
Cost remaining in June 30 work-in-process inventory:
Cost remaining in June 30 work-in-process inventory:
Direct material:
Direct material:
60,000x$2.45
$147,000
Conversion:
Conversion:
36,000x$1.70
61,200
Total cost of June 30 work in process
Total cost of June 30 work in process
Total cost of June 30 work in process
$208,200
Check: Cost of goods completed and transferred out
Check: Cost of goods completed and transferred out
Check: Cost of goods completed and transferred out