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Homework answers / question archive / The inventory at April 1, 2020, and the costs charged to Work in Process--Department B during April for Worldwide Company are as follows: 1,200 units, 40% completed $ 47,800 From Department A, 26,000 units 845,000 Direct labor 312,000 Factory overhead 176,770 During April, all direct materials are transferred from Department A
The inventory at April 1, 2020, and the costs charged to Work in Process--Department B during April for Worldwide Company are as follows:
|
1,200 units, 40% completed |
$ 47,800 |
|
From Department A, 26,000 units |
845,000 |
|
Direct labor |
312,000 |
|
Factory overhead |
176,770 |
During April, all direct materials are transferred from Department A. In Department B, the units in process at April 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units which were 70% completed as to conversion costs. Inventories are costed by the first-in, first-out method.
Required:
Prepare a cost of production report for Department B for the month April 2020.
| Worldwide Company | |||
| Department B | |||
| Computation of Equivalent unit (FIFO) | |||
| Particulars | Physical units | Material | Conversion |
| Units to be accounted for: | |||
| Beginning WIP Inventory | 1200 | ||
| Units started this period | 26000 | ||
| Total unit to be accounted for | 27200 | ||
| Units Accounted for: | |||
| Units completed and transferred out | |||
| From beginning inventory Material - 0% Conversion - 60% |
1200 | 0 | 720 |
| Started and completed currently | 25000 | 25000 | 25000 |
| Transferred to finished goods | 26200 | 25000 | 25720 |
| Units in ending WIP Material - 100% Conversion - 70% |
1000 | 1000 | 700 |
| Total units accounted for | 27200 | 26000 | 26420 |
| Worldwide Company | |||
| Department B | |||
| Computation of Cost per Equivalent unit | |||
| Particulars | Total cost | Material | Conversion |
| Current period cost | $1,333,770.00 | $845,000.00 | $488,770.00 |
| Equivalent units | 26000 | 26420 | |
| Cost per equivalent unit | $32.50 | $18.50 |
| Worldwide Company | |||
| Department B | |||
| Producton cost report - FIFO | |||
| Particulars | Total cost | Material | Conversion |
| Cost Accounted for : | |||
| Cost assigned to unit transferred out: | |||
| Cost from beginning WIP Inventory | $47,800 | ||
| Current cost added to complete beginning WIP: | |||
| Material | $0 | $0 | |
| Conversion (720 * $18.50) | $13,320 | $13,320 | |
| Total Cost from beginning inventory | $61,120 | ||
| Current cost of unit started and completed: | |||
| Material (25000*$32.50) | $812,500 | $812,500 | |
| Conversion (25000*18.50) | $462,500 | $462,500 | |
| Total cost of unit started and completed | $1,275,000 | ||
| Total cost of unit transferred out | $1,336,120 | ||
| Cost assigned to ending WIP: | |||
| Material (1000*$32.50) | $32,500 | $32,500 | |
| Conversion (700*$18.50) | $12,950 | $12,950 | |
| Total ending WIP inventory | $45,450 | ||
| Total cost accounted for | $1,381,570 |
