Question - X Company manufactures canned widgets that move through various departments before being finished and the company employs process costing to account for its inventory costs. This month, Department A had 9,800 units in beginning WIP that were 100% complete as to cans, 60% complete as to other direct materials, 40% complete as to direct labor and 20% complete as to overhead.
During the months, Department A started 81,500 units into production.
Ending Department A WIP included 4,600 units 100% complete as to cans, 40% complete as to other direct materials, 20% complete as to direct labor, and 10% complete as to overhead.
Cost information for the month is as follows:
Beginning WIP: Costs Added During the Month:
Cans $6,535 Cans $ 61,940
Other DM 6,174 Other DM 86,793
Direct Labor 5,594 Direct Labor 82,026
Overhead 1,070 Overhead 160,176
1) Using Weighted Average:
a) What are the costs per Department A's Equivalent Unit of Production?
b) What amount was allocated to Department A Ending WIP?
c) What amount was allocated to Department A units transferred out?
d) Reconcile total Department A costs to costs allocated.
2) Using FIFO:
a) What are the costs per Equivalent Unit of Production?
b) What amount was allocated to Department A Ending WIP?
c) What amount was allocated to Department A units transferred out?
d) Reconcile total Department A costs to costs allocated.
3) Reconcile Weighted Average and FIFO Equivalent Units
LABEL AND SUPPORT ALL OF YOUR WORK.