PA3 5 Preparing a Process Costing Production Report Complete Solution

Question: #939

PA3-5 Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]

Glencove Co. makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September follows:

Units Costs
Beginning work in process (40% complete) ?
Direct materials $ 1,336,500
Conversion cost 625,800

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Total cost of beginning work in process $ 1,962,300

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Number of units started 36,400
Number of units completed and transferred to finished goods 34,800
Ending work in process (75% complete) 21,850
Current period costs
Direct materials $ 2,402,400
Conversion cost 1,266,500

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Total current period costs $ 3,668,900

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Required:

Using the weighted average method of process costing, complete each of the following steps:

a. Reconcile the number of physical units worked on during the period.

Physical Units Physical Units
Beginning Units: Units Completed:
Units started: Ending Units:
Total units: Total Units:

PA3-5 Preparing a Process Costing Production Report (Weighted-Average Method) [LO 3-2, 3-3, 3-4]

b. Calculate the number of equivalent units. (Round your answers up to the nearest whole unit and round Conversion of Equivalent Units to 2 decimal places.)

Physical Units: Direct Materials: Conversion:
Units Completed:
Ending Inventory:
total:

c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)

Direct materials: Conversion:
Cost per equivalent:

d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

Direct materials: Conversion: Total Costs:
Units Completed:
Ending Inventory:
Total costs Accounted for:

Requires a modern browser - e.g. Safari 1, Netscape 6 or IE 5

b. Calculate the number of equivalent units. (Round your answers up to the nearest whole unit and round Conversion of Equivalent Units to 2 decimal places.)

c. Calculate the cost per equivalent unit. (Round your answers to 5 decimal places.)

d. Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 decimal places and round your final answers to the nearest whole dollar amount.)

Solution: #945

PA3-5 Preparing a Process Costing Production Report Complete Solution

Units completed        34,800    34,800.0
Units in ending work in process        21,850    16,387.5
Total equivalent units        56,650    51,187.5
COST INFORMATION
Solution c)

Costs to account for:
    Materials    Conversion Cost    To...