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Leslie Company uses an automated process to manufacture its glass products
Leslie Company uses an automated process to manufacture its glass products. For January, the company had the following activities:
Beginning work in process inventory
6,000 items, 1/4 complete
Units placed in production
14,000 units
Units completed
17,000 units
Ending work in process inventory
3,000 items, 50% complete
Cost of beginning work in process
P36,000
Direct material costs, current
42,000
Conversion costs, current
P68,000
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
Prepare a production cost worksheet using the FIFO method
Expert Solution
| UNITS TO ACCOUNT FOR: | ||||||
| Beginning Work in Process units | 6,000 | |||||
| Add: Units Started in Process | 14,000 | |||||
| Total Units to account for: | 20,000 | |||||
| UNITS TO BE ACCOUNTED FOR: | ||||||
| Units completed from Beginning WIP | 6000 | |||||
| Units started and completed | 11,000 | |||||
| Ending Work in Process | 3,000 | |||||
| Total Units to be accounted for: | 20,000 | |||||
| Equivalent Units: | ||||||
| Material Cost | Conversion | |||||
| % Completion | Units | % Completion | Units | |||
| Units completed from Beg. WIP | 0% | 0 | 75.00% | 4,500 | ||
| Units started and completed | 100% | 11,000 | 100% | 11,000 | ||
| Ending Work in Process | 100% | 3,000 | 50% | 1,500 | ||
| Total Equivalent units | 14,000 | 17,000 | ||||
| COST PER EQUIVALENT UNIT: | ||||||
| Material | Conversion | |||||
| Total cost added during the year | 42,000 | 68,000 | ||||
| Equivalent Units | 14,000 | 17,000 | ||||
| Cost per Equivalent unit | 3.00 | 4.00 | ||||
| TOTAL COST ACCOUNTED FOR: | ||||||
| Units Completed from Beginning WIP (6000 units) | ||||||
| Equivalent unit | Cost per EU | Total Cost | ||||
| Beginning Cost | 36000 | |||||
| Material | 0 | $3 | 0 | |||
| Conversion Cost | 4,500 | $4 | $18,000 | |||
| Cost of units completed from Beg WIP | $54,000 | |||||
| Units started and Transferred out (11000 units) | ||||||
| Equivalent unit | Cost per EU | Total Cost | ||||
| Material | 11,000 | $3 | $33,000 | |||
| Conversion Cost | 11,000 | $4 | $44,000 | |||
| Total Cost of Units completed and transferred out: | $77,000 | |||||
| Ending Work in process (3,000 units) | ||||||
| Equivalent unit | Cost per EU | Total Cost | ||||
| Material | 3,000 | $3 | $9,000 | |||
| Conversison Cost | 1,500 | $4 | $6,000 | |||
| Total cost of Ending Work in process: | 15,000 | |||||
| Total Cost of completed units | 146,000 | |||||
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