Question

Paint by Number prepares and packages paint products. Paint by Number has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. The company uses the weighted average method. Data from the month of May for the Blending Department are as follows: E: (Click the icon to view the data from May.) Read the requirements. Requirement 1. Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. (Complete all answer A Data Table Paint by Number Production Cost Report - Blending Departe Month Ended May 31 i Requirements 1. Physical Units O gallons 9,000 gallons 4,000 gallons 5,000 gallons Compute the Blending Department's equivalent units of production for direct materials and for conversion costs. Compute the total costs of the units (gallons) a. completed and transferred out to the Packaging Department. b. in the Blending Department ending Work-in-Process Inventory. UNITS Units to account for: Beginning work-in-process Gallons Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Started in production 9000 Print [Done] 9000 Total units to account for 0 Units accounted for: 6,750 Direct labor 1,300 2,000 Manufacturing overhead allocated $ 10,050 Total units accounted for Total costs added during May Print Done

Answer 1

Solution Required 1. Computation of Equivalent units of production Paint by Number Production Cost Report - Blending Department Month Ended May 31 Equivalent Units Physical Units Direct Materials | Conversion Units Units to account for: Beginning work-in process Started in production Total units to account for 9,000 9,000 1 4 Units accounted for: Units completed and transferred out Ending work-in process Total units accounted for ,000 5,000 9,000|__ 4,000 5,000 9,000| 4,000 1,500 5,500 Required 2: Assignment of cost Total Costs Direct Materials Conversion Costs to account for: Costs in beginning work in process | Current period costs / Cost added during May Total costs to be accounted for $0 $10,050 $10,050 $o $6,750 $6,750 SO $3,300 $3,300 Costs per equivalent unit: Direct Materials Conversion $0.75 $0.60 $3,000 $3,000 $2,400 $5,400 $2,400 Costs accounted for: Costs assigned to units transferred out: Direct Materials Conversion it transferred out Total costs of units transferred out Costs assigned to ending WIP inventory: Direct Materials Conversion Total ending WIP inventory Total costs accounted for $3,750 $900 $3,7501 $900 $4,650 $10,050 $6,750 $3,300 Total cost of the units completed and transferred out Total cost of the units in ending work-in-process inventory $5,400 $4,650

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Solution Required 1. Computation of Equivalent units of p Paint by Number Production Cost Report - Blending Department Month Ended May 31 7 Equivalent Units Physical Units Direct Materials Conversion Units Units to account for: | Beginning work-in process Started in production Total units to account for 13 14 9000 =C12+C13 15 16 17 18 Units accounted for: Units completed and transferred out Ending work in process Total units accounted for 4000 =C17* 100% 5000 =C18100% -SUM(C17-C18) -SUM(D17:018) I=C17100% 1-C18*30% -SUM(E17:E18) 19

21 Required 2: Assignment of cost 22 Conversion Direct Total Costs Materials Costs to account for: Costs in beginning work-in process -SUM(D25:E25) JO Current period costs / Cost added during May |-SUM(D26:E26) 6750 Total costs to be accounted for -SUM(C25:C26) SUM(D25:D26) -1300+2000 SUM(E25:E26) 28 29 Costs per equivalent unit: Direct Materials Conversion 30 31 32 =D27/D19 -E27/E19 33 34 35 36 I-SUM(D35:E35) =D17D30 =SUM(D36:E36) =SUM(C35:C36) -E17E31 37 38 Costs accounted for: Costs assigned to units transferred out: Direct Materials Conversion Total costs of units transferred out Costs assigned to ending WIP inventory: Direct Materials Conversion Total ending WIP inventory Total costs accounted for JEE19°531 -SUM(D39:E39) =D18D30 -SUM(D40:540) -SUM(C39:C40) =C37+C41 =SUM(D35:D41) ESUM(E35:E41) Total cost of the units completed and transferred out Total cost of the units in ending work-in-process inventory =C41