Question

A portion of the question is in FIFO and a portion requires weighted average.

Answer the questions listed below. Data is given regarding the process costing system of Ghent Widgets for the month of January. Overhead pertains to machining costs. All costs refer to WIP. Data Units Pct. Complete Pct. Complete Pct. Complete Materials Labor Machining 80% 90% 75% Beginning Inventory January Units Started January Ending Inventory January 15,000 54,500 22,000 55% 25% 65% Costs Beginning Inventory January Costs Added in January Materials $ 144,000 $ 588,250 Labor $ 405,000 $ 1,197,125 Machining $ 562,500 $ 2,365,500 Answer Questions here What is the total number of units transferred out of WIP What are the total equivalent units in January for Materials? What are the total equivalent units in January for Labor? What are the total equivalent units in January for Machining? What are the total costs in January for Materials? What are the total costs in January for Labor? What are the total costs in January for Machining? Answer the following questions using the weighted average method. What are the costs in January assigned to ending inventory for Materials? What are the costs in January assigned to ending inventory for Labor? What are the costs in January assigned to ending inventory for Machining? What are the total costs in January for ending WIP inventory? What are the costs in January assigned to Cost of Goods Manufactured for Materials ? What are the costs in January assigned to Cost of Goods Manufactured for Labor? What are the costs in January assigned to Cost of Goods Manufactured for Machining? What are the total costs in January Cost of Goods Manufactured? Answer the following questions using the FIFO method. What is cost per equivalent unit added in January for Materials ? What cost per equivalent unit added in January for Labor? What cost per equivalent unit added in January for Machining?

Answer 1

Answer is given below with full working

Equivalent units is shown separately for Average method and FIFO method

Total number of units transferred out of WIP 47,500 FIFO method 47,600 Average method 59,600 Total equivalent units in January for Material Total equivalent units in January for Labor 39,500 53,000 Total equivalent units in January for Machining 50,550 61,800 Total Costs in January for Materials ? $732,250 Total Costs in January for Labor ? $1,602,125 Total Costs in January for Machining ? $2,928,000 Weight average method Cost in January assigned to ending Inventory for Material ? $148,661 Cost in January assigned to ending Inventory for Labor ? $166,258 Cost in January assigned to ending Inventory for Machining $677,515 Cost in January assigned to COGM for Material ? $583,589 Cost in January assigned to COGM for Labor ? $1,435,867 Cost in January assigned to COGM for Machining ? $2,250,485 Total costs in January Cost of Goods manufactured ? $4,269,941 FIFO Method Cost per Equivalent unit added in January for Materials ? $12.36 Cost per Equivalent unit added in January for Labor ? $30.31 Cost per Equivalent unit added in January for Machining ? $46.80 % % Completed Material Completed Labor por Machining completed Schedule of Physical and Equivalent Units- Average Cost method Physical Units Units to be accounted for Beginning WIP Inventory 15,000 Units Started During Period 54,500 Total Units To Account for 69,500 Units accounted for Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Total units completed during period Units in Ending WIP Inventory Total Units To Account for 15,000 32,500 47,500 22,000 69,500 100% 100% 55% 47,500 12,100 59,600 100% 25% 47,500 5,500 53,000 65% 47,500 14,300 61,800 Unit Cost Analysis Schedule- Average cost for Month of January Total Material Labor Machining Costs Cost to Account for Cost from Beginning WIP Inventory Current Period Costs Total cost $144,000 $405,000 $588,250 $1,197,125 $732,250 $1,602,125 $562,500 $1,111,500 $2,365,500 $4,150,875 $2,928,000 $5,262,375 Divided by Equivalent units 59,600 53,000 61,800 Cost per equivalent unit $12.29 $30.23 $47.38 $89.89 In Average cost method Total cost of Opening Work in process and current period cost is divided by equivalent units Labor Machining Cost Summary Schedule - Average Cost for the month of January Direct Material Costs Accounted For Costs from Beginning WIP Inventory Total Costs To Complete Beginning WIP Inventory Direct Material Conversion cost Units Started and completed during period Direct Material Labor Machining Total costs of units completed and transferred to Finished Goods $583,589 $1,435,867 $583,589 $1,435,867 $2,250,485 $2,250,485 $583,589 $1,435,867 $2,250,485 $4,269,941 $148,661 $166,2580 Ending Work in process Inventory Direct Material Labor Machining Total Cost of Ending Work in Process Total Costs Accounted for $148,661 $166,258 $677,515 $677,515 $677,515 $992,434 $2,928,000 $5,262,375 $148,661| $166,258 $732,250 $1,602,125 In Average Cost method Beginning WIP inventory is not valued separately Cost is averaged out and added to units started and completed during the period FIFO Method Physical Units % Completed al Material % Completed Labor Machining Completed Units to be accounted for Beginning WIP Inventory Units Started During Period Total Units To Account for 15,000 54,500 69,500 Units accounted for Units Completed during Period: From Beginning WIP in Inventory Units started and completed during Period Total units completed during period Units in Ending WIP Inventory Total Units To Account for 20% 100% 3,000 32,500 10% 100% 1,500 32,500 25% 100% 3,750 32,500 15,000 32,500 47,500 22,000 69,500 55% 25% 65% 12,100 47,600 5,500 39,500 14,300 50,550 Unit Cost Analysis Schedule- FIFO cost for Month of January Material Labor Machining Total Costs Cost to Account for Cost from Beginning WIP Inventory Current Period Costs Total cost $144,000 $405,000 $588,250 $1,197,125 $732,250 $1,602,125 $562,500 $1,111,500 $2,365,500 $4,150,875 $2,928,000 $5,262,375 Divided by Equivalent units (Current period Cost only) 47,600 39,500 50,550 Cost per equivalent unit $12.36 $30.31 $46.80 In FIFO method Cost of Beginning inventory is excluded in calculating cost per equivalent unit $89.46 Cost Summary Schedule - FIFO Cost for the month of January Direct Material Labor Machining Total Costs Costs Accounted For Costs from Beginning WIP Inventory $144,000 $405,000 $562,500 $1,111,500 $37,075 To Complete Beginning WIP Inventory Direct Material Labor Machining $45,460 $37,075 $45,460 $175,482 $175,482 $401,641 $984,976 Units Started and completed during period Direct Material Labor Machining Total costs of units completed and transferred to Finished Goods $401,641 $984,976 $1,520,846 $1,520,846 $582,716 $1,435,437 $2,258,828 $4,276,980 $149,534 $166,688 Ending Work in process Inventory Direct Material Labor Machining Total Cost of Ending Work in Process Total Costs Accounted for $149,534 $166,688 $669,172 $669,172 $669,172 $985,395 $2,928,000 $5,262,375 $149,534 $166,688 $732,250 $1,602,125