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4 years ago

Process Costing using the Weighted-Average Method

Business

1 answer:

Finger [1]4 years ago

6 0

Answer:

First we find the equivalent units. Then Cost Per Equivalent Units. We apply these costs to the units to find the total cost. Then we compare the given costs with the found costs to see the difference.

Explanation:

Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Units transfered 6050 100 1000 6050 6050

Ending WIP 450 40 30 180 135

Equivalent Units 6230 6185

Units Completed And Transferred

Particulars Units

Beginning WIP 300

Units started in production 6200

Total Units Available 6500

Less Ending WIP 450

Units Completed and Transferred 6050

Cost Per Equivalent Unit

Particulars Materials Conversion

Beginning WIP $10,500 $6,750

Costs added 332,150 407,645

Total Costs 342,650 414,395

Equivalent Units 6230 6185

Cost Per Equivalent Unit 342,650 / 6230 414,395/ 6185

=$ 55 =$ 67

Costs Assigned

Ending WIP $ 18945

Materials ( 180 * 55) = $ 9900

Conversion ( 135 * 67) = $ 9045

Units Completed And Transferred Out : $ 738100

Materials ( 6050 *55) = $ 332750

Conversion ( 6050 * 67) = $ 405350

Cost Reconciliation

Cost to be accounted for

Beginning WIP ( $10,500 + $6,750 )= $ 17250

Cost added ( 332,150+ 407,645)= $ 739795

Total Costs $ 757045

Ending WIP $ 18945

Units Completed And Transferred Out : $ 738100

Total Costs $ 757045

Which is the same.

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Answer:

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3 years ago

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4 years ago

Read 2 more answers

At the end of 2016, Nash's Trading Post, LLC has accounts receivable of $635,600 and an allowance for doubtful accounts of $23,1

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Answer:

Explanation:

a. The journal entry is shown below:

Allowance for doubtful accounts A/c Dr $4,210

To Accounts receivable $4,210

(Being the write-off amount is recorded)

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Cash realizable value of the accounts receivable before the write-off would be

= Account receivable balance - Allowance for doubtful accounts

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= $612,460

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3 years ago

On January 1 of this year, Nowell Company issued bonds with a face value of $240,000 and a coupon rate of 6.0 percent. The bonds

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Answer:

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