The document contains examples of calculating equivalent units and unit costs under different costing methods including weighted average, FIFO, and direct. It provides physical flow schedules and calculations for equivalent units, unit costs, valuation of inventories, and journal entries to transfer costs of completed goods between departments. The examples demonstrate how to apply different costing methods to determine equivalent units, unit costs, and valuation of work in process and finished goods inventories.
The document contains examples of calculating equivalent units and unit costs under different costing methods including weighted average, FIFO, and direct. It provides physical flow schedules and calculations for equivalent units, unit costs, valuation of inventories, and journal entries to transfer costs of completed goods between departments. The examples demonstrate how to apply different costing methods to determine equivalent units, unit costs, and valuation of work in process and finished goods inventories.
The document contains examples of calculating equivalent units and unit costs under different costing methods including weighted average, FIFO, and direct. It provides physical flow schedules and calculations for equivalent units, unit costs, valuation of inventories, and journal entries to transfer costs of completed goods between departments. The examples demonstrate how to apply different costing methods to determine equivalent units, unit costs, and valuation of work in process and finished goods inventories.
unit started & complete = 19.000 – 4.000 unit complete = 15.000 + 3.000
equivalent unit schedule A
direct method conversion cost
unit complete 18.000 18.000 add : units in ending wip x percentage complete 4.000 x 100% 4.000 - 4.000 x 20% - 800 Equivalent unit of output 22.000 18.800
b. unit started = 20.000
unit started & complete = 20.000 - 0 = 20.000 unit complete = 20.000 + 2.000 = 22.000
eavivalent units schedule B
direct method conversion cost
unit complete 18.000 18.000 add : units in ending wip x percentage complete - x 0% - - - x 0% - - eavivalent unit of output 22.000 22.000
c. equivalent unit schedule C
direct method conversion cost
unit started & complete 40.000 40.000 add: unit in beginning WIP x percentage complete - x 0% - - - x 0% - - add: unit in beginning WIP x percentage complete 8.000 x 100% 8.000 - 8.000 x 25% - 2.000 Eavivalent unit of output 48.000 42.000 d. equivalent unit started schedule D
direct method conversion cost
unit started & complete 25.000 25.000 add: unit in beginning WIP x percentage complete 25.000 x 0 % - - 25.000 x 40 % - 10.000 add: unit in beginning WIP x percentage complete 10.000 x 100% 10.000 - 10.000 x 10% - 1.000 Eavivalent unit of output 35.000 36.000
EXERCISE 6-19
FIFO Method
a.equivalent units schedule A
direct method conversion cost
unit started & complete 15.000 15.000 add: unit in beginning WIP x percentage complete 3.000 x 0 % - - 3.000 x 70 % - 2.100 add: unit in beginning WIP x percentage complete 4.000 x 100% 4.000 - 4.000 x 20% - 800 Eavivalent unit of output 19.000 17.900
b.equivalent unit schedule B
direct method conversion cost
unit started & complete 20.000 20.000 add: unit in beginning WIP x percentage complete 2.000 x 0 % - - 2.000 x 25 % - 5.000 add: unit ending WIP x percentage complete - x 0% - - - x 0% - - Eavivalent unit of output 20.000 20.500
EXERCISE 6-20
a. cost
Beginning WIP Current cost
- Direct method 30.000 - Direct Method 25.000 - Conversion cost 5.000 - Conversion cost 65.000 35.000 90.000
Unit cost = unit material cost + unit conversion cost
= 30.000 + 25.000 + 15.000 + 65.000 11.000 8.000
= 5 + 8,75
= 13,75
b. valuation of inventories
unit of goods transfered out:
- unit complete = 13,75 x 5.000 = 68.750 - ending wip = ( 5 x 6.000 ) + ( 8,75 x 3.000 ) = 30.000 + 26.250 = 56.250 Total cost assigned 125.000
EXERCISE 6-21
1. unit started & complete = 40.000
unit started = unit started & complete + units ending WIP = 40.000 + 20.000 = 60.000
Physical flow schedule: costing DEPARTEMENT
Unit to account for: - units beginning WIP ( 50& complete ) 10.000 - units started during April 60.000 Total 1 units to account for 70.000
Units account for:
- unit complete and transfered out
- Started & complete 40.000 - From beginning WIP 10.000 50.000 Unnit in ending WIP ( 25% complete ) 20.000 Total units accounted for 70.000
2. units cost for equivalent unit
cost
Beginning WIP Current cost
- Direct method 20.000 - Direct Method 240.000 - Conversion cost 80.000 - Conversion cost 320.000 100.000 560.000
Unit cost = 240.000 + 320.000
60.000 50.000 = 4 + 6,4 = 10,4 3. valuation unit of goods transfered out - from beginning WIP 100.000 - to complete beginning WIP ( 6,4 x 5.000 ) 32.000 - started & complete (10,4 x 40.000 ) 416.000 548.000
ending WIP
( 4 x 20.000 ) + ( 6,4 x 5.000 )
80.000 + 32.000 112.000 Total cost assigned 660.000
4. Jurnal transfered of cost of good complete from costing to sewing