BeGone manufactures spray cans of insect repellent.

On August 1, 2010, the company had 9,800 units in the

beginning WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other
materials, 40 percent complete as to direct labor, and 20 percent complete as to overhead. During August,
BeGone started 81,500 units in the manufacturing process. Ending WIP Inventory included 4,600 units that were
100 percent complete as to canisters, 40 percent complete as to other materials, 20 percent complete as to direct
labor, and 10 percent complete as to overhead. Assume that BeGone uses FIFO process costing method.
Cost information for the month is as follows:
a. Prepare a schedule showing the BeGone August 2010 computation of FIFO equivalent units of production.

Beginning WIP inventory

Canisters $6535
Other Materials $6174
Direct Labor $6431
Overhead $1070

August Costs
Canisters $61,940
Other Direct Materials $86,793
Direct Labor $81,189
Overhead $160,176
Prepare a schedule showing the BeGone August 2010 computation of FIFO cost per equivalent unit??

Answer

Units Canisters D.M. D.L. O.H.

Input
Beg. 9800
Started 81500

Output
Completed from beg. 9800 0 3920 5880 7840
Completed from started 76900 76900 76900 76900 76900
w.i.p. end. 4600 4600 1840 920 460
Equivalent units 81500 82660 83700 85200

Cost Canisters D.M. D.L. O.H.

Cost beg. 20210
Cost added 390098 61940 86793 81189 160176
Total cost 410308 61940 86793 81189 160176
÷ ÷ ÷ ÷
Equivalent units 81500 82660 83700 85200
= Cost per unit 0.76 1.05 0.97 1.88
Assignment of costs
Cost beg. 20210
Completed from beg. 24558.8 0 4116 5703.6 14739.2
Completed from started 358354 58444 80745 74593 144572
w.i.p. end. 7185.2 3496 1932 892.4 864.8
Total costs 410308 61940 86793 81189 160176
EL-BOP 01003810872 1
BeGone manufactures spray cans of insect repellent. On August 1, 2013, the company had 9,800 units in the beginning
WIP Inventory that were 100 percent complete as to canisters, 60 percent complete as to other materials, 40 percent
complete as to direct labor, and 20 percent complete as to overhead. During August, BeGone started 81,500 units in the
manufacturing process. Ending WIP Inventory included 4,600 units that were 100 percent complete as to canisters, 40
percent complete as to other materials, 20 percent complete as to direct labor, and 10 percent complete as to overhead.

Prepare a schedule showing the BeGone August 2013 computation of weighted average equivalent units of production
and cost per equivalent unit.

Cost information for the month is as follows:

Beginning WIP inventory
Canisters $6535
Other Materials $6174
Direct Labor $6431
Overhead $1070

August Costs
Canisters $61,940
OthervDirect Materials $86,793
Direct Labor $81,189
Overhead $160,176

Answer

Units Canisters D.M. D.L. O.H.

Input
Beg. 9800
Started 81500

Output
Completed 86700 86700 86700 86700 86700
w.i.p. end. 4600 4600 1840 920 460
Equivalent units 91300 88540 87620 87160

Cost Canisters D.M. D.L. O.H.

Cost beg. 20210 6535 6174 6431 1070
Cost added 390098 61940 86793 81189 160176
Total cost 410308 68475 92967 87620 161246
÷ ÷ ÷ ÷
Equivalent units 91300 88540 87620 87160
= Cost per unit 0.75 1.05 1 1.85

Assignment of costs
Completed 65025 91035 86700 160395
w.i.p. end. 3450 1932 920 851
Total costs 68475 92967 87620 161246

EL-BOP 01003810872 2
Waltham Mfg. makes skateboards and uses a weighted average process costing system. On May 1, 2010, the company
had 400 boards in process that were 70% complete as to material and 85% complete as to conversion. During the month,
3,800 additional boards were started. On May 31, 300 boards were still in process (40% complete as to material and 60%
complete as to conversion). Cost information for May 2010 is as follows:

Beginning WIP Inventory Costs

Direct Material $4,349
Conversion $4,658

Current period costs

Direct Material 60,775
Conversion 46,750

a. Calculate EUP for each cost component using the weighted average method.
b. Calculate cost per EUP for each cost component.

Answer

Units D.M. C.C.

Input
Beg. 400
Started 3800

Output
Completed 3900 3900 3900
w.i.p. end. 300 120 180
Equivalent units 4020 4080

b.
Cost D.M. C.C.
Cost beg. 9007 4349 4658
Cost added 107525 60775 46750
Total cost 116532 65124 51408
÷ ÷
Equivalent units 4020 4080
= Cost per unit 16.2 12.6

EL-BOP 01003810872 3
The following production and cost per EUP data are available for Vendome corp. for February 2010:
Units completed during February 390,000
Units in ending inventory (100% complete as to direct material;
30% complete as to direct labor; 25% complete as to overhead) 55,500
Direct material cost per EUP $7.5
Direct labor cost per EUP $9
Overhead cost per EUP $10.2
Required:
a. What is cost of goods completed during February?
b. What is the cost of ending inventory at February 28, 2010?
c. What is the total cost to account for during February?
Answer

a. Cost of the goods completed = (390,000*7.5) + (390,000*9) + (390,000*10.2) = $10,413,000;

b. Cost of ending inventory = (55,500*7.5) + (16,650*9) + (13,875*10.2) = $707,625;

c. Total cost to account = 10,413,000 + 707,625 = $11,120,625.

Units D.M. D.L. O.H.

Output
Completed 390000 390000 390000 390000
w.i.p. end. 55500 55500 16650 13875
Equivalent units 445500 406650 403875

EL-BOP 01003810872 4
During August 2010, L.M. company’s department Y equivalent unit product costs, computed under the weighted
average method, were as follows:-
Material $2
Conversion 6
Transferred to 10
All material is introduced at the end of the process in Department Y. August’s ending work in process inventory
contained 4,000 units that were 40 percent complete as to conversion. 20,000 units transferred out during August
to finished goods inventory.
Required:-
A. Compute the total costs that should be assigned to the August 31, 2010 Work in Process????
B. Compute the total cost of unites transferred to finished goods???
C. Prepare journal entry that LM company’s accountant should make at the end of august related to the units
transferred out
Answer

Units Transferred in D.M. C.C.

Output
Completed 20000 20000 20000 20000
w.i.p. end. 4000 4000 0 1600
Equivalent units 24000 20000 21600

A. Total cost of w.i.p. ending = (4000*10) + (0*2) + (1600*6) = 49,600

B. Cost of completed units = (20,000*10) + (20,000*2) + (20,000*6) = 360,000

C. D.R. C.R.
Finished goods inventory 360,000
W.I.P. inventory 360,000

EL-BOP 01003810872 5
In October, Manchaca Company, who uses the FIFO method for process costing, had the following production
and cost data:
Beginning inventory units* 42,600
October completed production 1,570,000
Units in ending inventory** 28,400
Beginning inventory cost $458,482
October direct material cost per EUP $10.74
October direct labor cost per EUP $13.88
October overhead cost per EUP $24.80
* 80% complete as to DM; 45% complete as to DL; 30% complete as to OH
** 35% complete as to DM; 15% complete as to DL; 25% complete as to OH
a. What is the cost of the beginning inventory transferred out in October?
b. What is the total cost transferred out in October?
c. What is the cost of ending inventory at the end of October?
d. What is the total cost to account for during October?
Answer
Units D.M. D.L. O.H.
Input
Beg. 42600
Started 1555800

Output
Completed from beg. 42600 8520 23430 29820
Completed from started 1527400 1527400 1527400 1527400
w.i.p. end. 28400 9940 4260 7100
Equivalent units 1545860 1555090 1564320

Cost D.M. D.L. O.H.

Cost beg. 458482
Cost added 76982321.6 16602536 21584649 38795136
Total cost 77440803.6 16602536 21584649 38795136
÷ ÷ ÷
Equivalent units 1545860 1555090 1564320
= Cost per unit 10.74 13.88 24.8

Assignment of costs
Cost beg. 458482
Completed from beg. 1156249.2 91504.8 325208.4 739536
Completed from started 75484108 16404276 21200312 37879520
w.i.p. end. 341964.4 106755.6 59128.8 176080
Total costs 77440803.6 16602536 21584649 38795136

a. Cost of beginning inventory = Cost beg. + Completed from beg. = 458482+1156249.2 = 1614731.2
b. Cost transferred out in October = Cost beg. + Completed from beg. + Completed from started = 77098839.2
c. Cost of ending inventory = 341964.4
d. Total cost to account for = 77440803.6
EL-BOP 01003810872 6