Total
production
Direct materials
Conversion costs
costs
Cost
per
Cost
per
Equivalent
equivalent
Total
Equivalent equivalent
Total
units
unit
costs
units
unit
costs
(1)
(2)
(3)=(1)×(2) (4) (5) (6)=(4)×(5)
(7)=(3)+(6)
Panel Ab Total costs to account for Work in progress, opening
(from Solution Exhibit B)
20 23,000 2,460,000 12 10,000.00 1,120,000 2,580,000 Work done in current period only
(from Solution Exhibit B)
80 25,000 2,000,000 85 11,000.00 935,000 2,935,000 To account for
100 24,600
*
2,460,000 97 10,876.29
†
1,055,000 3,515,000
Panel B
Assignment of costs Completed and transferred out
(90 physical units)
90
‡
24,600 2,214,000 90
‡
10,876.29 1,978,866 3,192,866 Work in progress, closing
(10 physical units)
10
‡
24,600 246,000 7
‡
10,876.29 76,134 322,134 Accounted for
100 2,460,000 97 1,055,000 3,515,000
*
Weighted-average cost per equivalent unit of direct materials = Total direct materials costs divided by total equivalent units of direct materials
= €2,460,000 ÷ 100 = €24,600.
†
Weighted-average costs per equivalent unit of direct materials = Total conversion costs divided by total equivalent units of conversion costs
= €1,055,000 ÷ 97 = €10,876.29.
‡
From Solution Exhibit A.
Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5 th Edition, Instructor’s Manual © Pearson Education Limited 2012 Share with your friends: |
