Question

Process Costing Zero beginning inventory, materials introduced in middle of process Free work cells Answer cells Dot and Ken Ice Cream uses a mixing department and a freezing department in producing its ice cream. Its process-costing system in the mixing department has two direct materials cost categories ice cream mix and flavorings) and one conversion cost pool. The following data pertain to the mixing department for April 2017: Work in process, April 1 Started in April Completed and transferred to freezing 10,000 gallons 8,500 gallons Flavorings Costs: Ice Cream Mix $27,000 Conversion Costs $53,700 $4,080 The ice cream mix is introduced at the start of operations in the mixing department, and the flavorings are added when the product is 40% completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is 30% complete. Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the answer. 1. Compute the equivalent units in the mixing department for April 2017 for each cost category. Physical Units Ice Cream Mix Equivalent Units Conversion Flavorings Costs You can hard enter these numbers Work in process, beginning Started/Added during current period -To account for 10,000 10,000 8,500 Completed and transferred out during current period Work in process, ending |=Accounted for 8,500 1,500 10,000 8,500 1,500 10,000 8,500 450 You can hard enter these numbers Cost per equivalent unit started/added $ 10,000.00 $ 8,500.00 $ 8,950.00 2. Compute (a) the cost of goods completed and transferred to the freezing department during April and (b) the cost of work in process as of April 30, 2017 (a) Cost of goods completed and transferred out (b) Cost of work in process as of April 30, 2017 Total Costs Accounted For Ice Cream Mix $27,000 $ 10,000.00 $ 2.70 Conversion Flavorings Costs $4.080 $53.700 $ 8,500.00 $ 8,950.00 $ 0.48 $ 6.00 Total $84,780 $ 27,450.00 $ 9.18

Answer 1

		Ice Cream Mix	Flavorings	Conversion Costs
Units to account for
Beginning Work in process	0
Units started	10000
Total Units to account for	10000
Units accounted for
Units transferred	8500	8500	8500	8500
Equivalent units in ending WIP	1500	1500	0	450
Total units accounted for	10000
Equivalent units of production		10000	8500	8950
	Ice Cream Mix	Flavorings	Conversion Costs
Cost of beginning work in process	$                -	$                  -	$                 -
Cost added during the production	$      27,000	$           4,080	$        53,700
Total Cost	$      27,000	$           4,080	$        53,700
Equivalent units of production	10000	8500	8950
Cost per Equivalent unit	$           2.70	$             0.48	$             6.00
	Ice Cream Mix	Flavorings	Conversion Costs
Ending Work in process inventory
Equivalent units	1500	0	450
Cost per Equivalent unit	$           2.70	$             0.48	$             6.00
Cost of Ending Work in process inventory	$         4,050	$                  -	$          2,700
Units completed and transferred out
Units transferred	8500	8500	8500
Cost per Equivalent unit	$           2.70	$             0.48	$             6.00
Cost of Units transferred	$      22,950	$           4,080	$        51,000
Costs to be accounted for
Cost of beginning work in process	$                -
Cost added during production	$      31,080
Total Costs to be accounted for	$      31,080
Costs accounted for as follows
Cost of Ending work in process	$         4,050
Cost of Units transferred	$      27,030
Total Costs accounted for	$      31,080

Since ending WIP is 30% complete, flavorings are not added as they are added when it is 40% complete