Managerial Accounting

Assignment 4-26

Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Work in process, June 1—50,000 units:

Direct material: 100% complete cost of …………………………...............................$120,000                                  Conversion: 40% complete, cost of ................................................................................ 34,400      Balance in work in process, June 1…………...............................................................$154,400

Units started during June ………….....................................................................................200,000

Units completed during June and transferred out to finished-goods inventory....................190,000

Work in process, June 30:

Direct material: 100% complete

Conversion: 60% complete

Costs incurred during June:

Direct material………............................................................................................$492,500

Conversion costs:

Direct labor..................................................................................................$ 87,450 Applied manufacturing overhead............................................................................. 262,350 Total conversion costs….........................................................................................$349,800

Required:  Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis of total costs.

Assignment 4-27

The following data pertain to the Vesuvius Tile Company for July.

Work in process, July 1 (in units)  ......................................................................................20,000

Units started during July        ..................................................................................................?

Total units to account for......................................................................................................65,000

Units completed and transferred out during July….................................................................?

Work in process, July 31 (in units).......................................................................................15,000

Total equivalent units: direct material..................................................................................65,000

Total equivalent units: conversion...........................................................................................?

Work in process, July 1: direct material……....................................................................$164,400

Work in process, July 1: conversion........................................................................................?

Costs incurred during July: direct material..............................................................................?

Costs incurred during July: conversion...............................................................................659,400

Work in process, July 1: total cost......................................................................................244,200

Total costs incurred during July……...............................................................................1,031,250

Total costs to account for…….........................................................................................1,275,450

Cost per equivalent unit: direct material..................................................................................8.25

Cost per equivalent unit: conversion..........................................................................................?

Total cost per equivalent unit………......................................................................................21.45

Cost of goods completed and transfered out during July............................................................?

Cost remaining in ending work-in-process inventory: direct material........................................?

Cost remaining in ending work-in-process inventory: conversion........................................79,200

Total cost of July 31 work in process...................................................................................202,950

Additional Information:

a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.

b. The company uses weighted-average process costing. Process Costing and Hybrid Product-Costing Systems 159

c. The July 1 work in process was 30 percent complete as to conversion.

d. The July 31 work in process was 40 percent complete as to conversion.

Required: Compute the missing amounts, and prepare the firm’s July production report.