Total Transferred-in production costs Direct materials Conversion costs costs ______________________________________________________________________ Cost per Cost per Cost per Equivalent equivalent Total Equivalent equivalent Total Equivalent equivalent Total units unit costs units unit costs units unit costs (10)= (1) (2) (3)=(1)×(2) (4) (5) (6)=(4)×(5) (7) (8) (9)=(7)×(8) (3)+(6)+(9) Panel A Total costs to account for work in progress, opening (from Solution Exhibit B) 40 1,000 * 40,000 0 – 0 30 600 18,000 58,000 Work done in current period only (from Solution Exhibit B) 80 1,090 * 87,200 90 400 36,000 75 663 49,725 172,925 To account for 120 1,060 * 127,200 90 † 400 † 36,000 105 ‡ 645 ‡ 67,725 230,925 Panel B Assignment of costs Completed and transferred out (90 physical tonnes) ** 90 ** 1,060 * 95,400 ** 90 ** 400 36,000 ** 90 ** 645 58,050 189,450 Work in progress closing (30 physical tonnes) ** 30 ** 1,060 * 31,800 ** 0 ** – 0* 15 ** 645 9,675 41,475 Accounted for 120 127,200 90 36,000 105 67,725 230,925 * Weighted-average cost per equivalent unit of transferred-in costs = Total transferred-in costs divided by total equivalent units of transferred-in costs = NKr 127,200 ÷ 120 = NKr 1,060. ** From Solution Exhibit A. † Weighted-average costs per equivalent unit of direct materials = Total direct materials costs divided by total equivalent units of direct materials = NKr 36,000 ÷ 90 = NKr 400. ‡ Weighted-average cost per equivalent unit of conversion costs = Total conversion costs divided by total equivalent units of conversion costs = NKr 67,725 ÷ 105 = NKr 645.
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