Accounting Homework Exercise 4-7
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Accounting Homework Helper Saturday, March 1, 2014 Exercise 4-7 Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO2, LO3, LO4, LO5] Papyrutech Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted-average method in its process costing system. Data for October for the Drying Department follow: Percent Completed Units Pulping Conversion Work in process inventory, October 1 4,000 100% 60% Work in process inventory, October 31 6,000 100% 75% Pulping cost in work in process inventory, October 1 $ 1,500 Conversion cost in work in process inventory, October 1 $ 400 Units transferred to the next production department 146,000 Pulping cost added during October $ 59,300 Conversion cost added during October $ 22,100 No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department. Required: 1. Determine the equivalent units for October for pulping and conversion. Pulping Conversion Equivalent units of production 152,000 150,500 2. Compute the costs per equivalent unit for October for pulping and conversion. (Round your cost per equivalent unit answers to 4 decimal places. Omit the "$" sign in your response.) Pulping Conversion Cost per equivalent unit $ .4000 $ .1495 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the Finishing Department in October. (Round your cost per equivalent unit calculations to 4 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Pulping Conversion Total Cost of ending work in process inventory $ 2,400 $ 673 $ 3,073 Cost of units completed and transferred out $ 58,400 $ 21,827 $ 80,227 4. Prepare a cost reconciliation report for the Drying Department for October. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory $ 1,900 Costs added to production during the period 81,400 Total cost to be accounted for $ 83,300 Costs accounted for as follows: Cost of ending work in process inventory $ 3,073 Cost of units completed and transferred out 80,227 Total cost accounted for $ 83,300 Explanation: Weighted-Average Method 1. Equivalent units of production ▼ 2014 (167) ► July (1) ► April (54) ▼ March (101) Exercise 9-19 Flexib Budget Performan Report i... Exercise 9-18 Flexib Budget Performan Report [... Exercise 9-17 Flexib Budgets and Reve and Spe... Exercise 9-16 Worki with More Than O Cost Driv... Exercise 9-15 Critiqu Report; Prepare a Perform... Exercise 9-14 Flexib Budget [LO1]Pierr Manufactu... Exercise 9-13 Flexib Budget Performan Report [... Exercise 9-12 Prepar Report Showing Revenue and... Exercise 9-10 Flexib Blog Archive 0 More Next Blog» C
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Transcript of Accounting Homework Exercise 4-7
Accounting Homework Helper
Saturday, March 1, 2014
Exercise 4-7 Comprehensive Exercise; Second Production Department-Weighted-Average Method [LO2, LO3, LO4, LO5]Papyrutech Corporation produces fine papers in three production departments—Pulping, Drying, andFinishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanicallyand chemically treated to separate their fibers. The result is a thick slurry of fibers. In the DryingDepartment, the wet fibers transferred from the Pulping Department are laid down on porous webs,pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper iscoated, cut, and spooled onto reels. The company uses the weighted-average method in its processcosting system. Data for October for the Drying Department follow:
Percent CompletedUnits Pulping Conversion
Work in process inventory, October 1 4,000 100% 60% Work in process inventory, October 31 6,000 100% 75% Pulping cost in work in process inventory, October 1 $ 1,500 Conversion cost in work in process inventory, October 1 $ 400 Units transferred to the next production department 146,000 Pulping cost added during October $ 59,300 Conversion cost added during October $ 22,100
No materials are added in the Drying Department. Pulping cost represents the costs of the wet fiberstransferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches;each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paperthat is passed on to the Finishing Department.
Required:1. Determine the equivalent units for October for pulping and conversion.
Pulping Conversion Equivalent units of production 152,000 150,500
2. Compute the costs per equivalent unit for October for pulping and conversion. (Round your cost per
equivalent unit answers to 4 decimal places. Omit the "$" sign in your response.)
Pulping Conversion Cost per equivalent unit $ .4000 $ .1495
3. Determine the total cost of ending work in process inventory and the total cost of units transferred to
the Finishing Department in October. (Round your cost per equivalent unit calculations to 4decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign inyour response.)
Pulping Conversion Total
Cost of ending work in process inventory $ 2,400 $ 673 $ 3,073 Cost of units completed and transferred out $ 58,400 $ 21,827 $ 80,227
4. Prepare a cost reconciliation report for the Drying Department for October. (Round your answers tothe nearest dollar amount. Omit the "$" sign in your response.)
Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory $ 1,900 Costs added to production during the period 81,400 Total cost to be accounted for $ 83,300 Costs accounted for as follows: Cost of ending work in process inventory $ 3,073 Cost of units completed and transferred out 80,227 Total cost accounted for $ 83,300
Explanation:
Weighted-Average Method
1.Equivalent units of production
▼ 2014 (167)
► July (1)
► April (54)
▼ March (101)
Exercise 9-19 FlexibleBudget PerformanceReport i...
Exercise 9-18 FlexibleBudget PerformanceReport [...
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Exercise 9-10 Flexible
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Posted by Accounting Homework Help at 12:40 PM
Pulping Conversion Transferred to next department 146,000 146,000 Ending work in process: Pulping: 6,000 units × 100% complete 6,000 Conversion: 6,000 units × 75% complete 4,500 Equivalent units of production 152,000 150,500
2.Cost per equivalent unit
Pulping Conversion Cost of beginning work in process $ 1,500 $ 400 Cost added during the period 59,300 22,100 Total cost (a) $ 60,800 $ 22,500 Equivalent units of production (b) 152,000 150,500 Cost per equivalent unit, (a) ÷ (b) $ 0.40 $ 0.1495
3.Cost of ending work in process inventory and units transferred out
Pulping Conversion Total Ending work in process inventory: Equivalent units of production 6,000 4,500 Cost per equivalent unit $ 0.40 $ 0.1495 Cost of ending work in process inventory $ 2,400 $ 673 $ 3,073 Units completed and transferred out: Units transferred to the next department 146,000 146,000 Cost per equivalent unit $ 0.40 $ 0.1495 Cost of units completed and transferred out $ 58,400 $ 21,827 $80,227
4.Cost reconciliation
Cost of beginning work in process inventory ($1,500 + $400) = $1,900Costs added to production during the period ($59,300 + $22,100) = $81,400
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austin king June 1, 2014 at 1:10 PM
How did you get all of those answers?
Reply
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