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.
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