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    Sunspot Beverages

    Uploaded by

    Deep Gandhi
    The document describes two methods, weighted average and FIFO, for calculating costs of work in process inventory. It provides data on beginning and ending work in process for a period, units started and completed, and costs added. It then shows the calculations for determining equivalent units, cost per equivalent unit, costs of beginning and ending inventory, and costs of units transferred out using each method. Both methods result in the total costs being properly accounted for.

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    Sunspot Beverages

    Uploaded by

    Deep Gandhi
    40 views6 pages
    The document describes two methods, weighted average and FIFO, for calculating costs of work in process inventory. It provides data on beginning and ending work in process for a period, units started and completed, and costs added. It then shows the calculations for determining equivalent units, cost per equivalent unit, costs of beginning and ending inventory, and costs of units transferred out using each method. Both methods result in the total costs being properly accounted for.

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    Over heads

    Original Title

    SUNSPOT BEVERAGES

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    The document describes two methods, weighted average and FIFO, for calculating costs of work in process inventory. It provides data on beginning and ending work in process for a period, units started and completed, and costs added. It then shows the calculations for determining equivalent units, cost per equivalent unit, costs of beginning and ending inventory, and costs of units transferred out using each method. Both methods result in the total costs being properly accounted for.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    40 views6 pages

    Sunspot Beverages

    Uploaded by

    Deep Gandhi
    The document describes two methods, weighted average and FIFO, for calculating costs of work in process inventory. It provides data on beginning and ending work in process for a period, units started and completed, and costs added. It then shows the calculations for determining equivalent units, cost per equivalent unit, costs of beginning and ending inventory, and costs of units transferred out using each method. Both methods result in the total costs being properly accounted for.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    Weighted Average Method

    % completed
    Units Materials Conversion
    Work in process,beginning 20000 100.00% 75.00%
    Started into production 180000
    Completed and transferred out 160000
    Work in process,ending 40000 100.00% 25.00%

    Work in process beginning 25200 24800


    Cost added during june 334800 238700

    Question 1:
    Completed and Transferred 160000 160000
    Equivalent materials:40000*100% 40000
    Equivalent conversion:40000*25% 10000
    Equivalent units of production 200000 170000

    Question 2:

    Work in process beginning 25200 24800


    Cost added during june 334800 238700
    TOTAL 360000 263500
    Equivalent units of production 200000 170000
    Cost per equivalent 1.8 1.55

    Question 3:

    Ending Work in process inventory 40000 10000


    Cost per equivalent 1.8 1.55
    Cost of ending w/p inventory 72000 15500
    Question 4:

    No of units transferred 160000 160000


    cost per equivalent 1.8 1.55
    cost of units transferred 288000 248000

    Question 5:
    Cost Reconciliation report
    Costs to be accounted for
    Cost of beginning w/p inventory 50000
    Costs added to production during period 573500
    Total cost to be accounted for 623500

    Costs accounted for as follows


    Cost of ending w/p inventory 87500
    Cost of units transferred out 536000
    Total cost accounted for 623500
    FIFO Method

    % completed
    Units Materials
    Work in process,beginning 20000 100.00%
    Started into production 180000
    Completed and transferred out 160000
    Work in process,ending 40000 100.00%

    Materials
    Work in process beginning 25200
    Cost added during june 334800

    Question 1:
    Materials
    Equivalent units needed to complete
    beginning work in process inventory 0
    Units Started & Completed during the period 140000
    Equivalent units in ending work in process
    inventory 40000
    Equivalent units of production 180000

    Question 2:

    Cost added during june 334800


    Equivalent units of production 180000
    Cost per equivalent unit 1.86

    Question 3:

    Equivalent units in ending work in inventory 40000


    Cost per equivalent 1.86
    Cost of ending work in process inventory 74400

    Question 4:
    Units transferred out:
    Cost of beginning work in process inventory 25200
    Cost to complete units in beginning work in
    process inventory
    Equivalent units needed to complete
    beginning w/p inventory 0
    Cost per equivalent 1.86
    Cost to complete units in beginning work in
    process inventory 0
    Cost of units started & completed this period
    Units Started & Completed during the period 140000
    Cost per equivalent 1.86
    Cost of units started & completed this period 260400
    Total cost of units transferred out

    Question 5:
    Cost reconciliation report
    Costs to be accounted for
    Cost of beginning w/p inventory 50000
    Costs added to production during period 573500
    Total cost to be accounted for 623500

    Costs accounted for as follows


    Cost of ending w/p inventory 89800
    Cost of units transferred out 533700
    Total cost accounted for 623500
    % completed
    Conversion
    75.00%

    25.00%

    Conversion
    24800
    238700

    Conversion

    5000
    140000

    10000
    155000

    238700
    155000
    1.54

    10000
    1.54
    15400 89800

    24800 50000

    5000
    1.54

    7700 7700

    140000
    1.54
    215600 476000
    533700

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