1.

SANDERS COMPANY
1. Raw Materials Inventory................................................................... 45,000
Accounts Payable.................................................................... 45,000
2. Factory Labor................................................................................... 65,000
Wages Payable ........................... ........................................... 65,000
3. Manufacturing Overhead.................................................................. 50,000
Accounts Payable...................................................................... 6,000
Cash........................................................................................... 44,000
4. Work in ProcessFabricating.......................................................... 10,000
Work in ProcessFinishing...............................................................8,000
Raw Materials Inventory......................................................... 18,000
5. Work in ProcessFabricating.......................................................... 13,000
Work in ProcessFinishing............................................................. 52,000
Factory Labor .......................................................................... 65,000
6. Work in ProcessFabricating.......................................................... 15,000
Work in ProcessFinishing............................................................ 30,000
Manufacturing Overhead........................................................ 45,000

2. MUFFY PAINTING COMPANY

Quantities
Units to be accounted for
Work in process, March 1
Started into production
Total units

Physical Units

Equivalent Units_________________
Materials
Conversion Costs

2,000
48,000
50,000

Units accounted for

Transferred out
Work in process, March 31
Total units

42,000
8,000
50,000

42,000
8,000
50,000

42,000
6,000 (8,000 75%)
48,000

3. ASSEMBLY DEPARTMENT
1.

Units transferred out

Work in process, July 31
Units accounted for

90,000
30,000
120,000

2. Equivalent units of production:

Transferred out
Work in process, July 31
Total
3.

Materials cost per unit =

Conversion cost per unit =
Total unit cost

Physical Units
90,000
30,000
120,000

Equivalent Units_______________
Materials
Conversion Costs
90,000
90,000
30,000
9,000 (30,000 x 30%)
120,000
99,000

$2.25 [($190,000 + $80,000) 120,000 units]

$1.50 [($135,500 + $13,000) 99,000 units]
$3.75

Total cost assigned to units transferred out: 90,000 $3.75 = $337,500

4 . Total cost of July 31 inventory: (30,000 $2.25) + (9,000 $1.50) = $81,000

4. EDWARDS MANUFACTURING
(a)
Transferred out
Work in process, March 31
Total units
(b)

Materials cost per unit =

Conversion cost per unit =
Total unit cost

Physical Units
4,000
2,000
6,000
$5.00
$4.00
$9.00

Equivalent Units_________________
Materials
Conversion Costs
4,000
4,000
2,000
800 (2,000 40%)
6,000
4,800

($30,000 6,000 units]

($19,200 4,800 units]

Cost Reconciliation Schedule

Cost accounted for
Transferred out (4,000 x $9.00)
Work in Process, July31
Materials (2,000 x $5.00)
$10,000
Conversion costs (800 x $4.00)
3,200
Total costs

$36,000
$13,200
$49,200

5. TACO RANCH
(a)
Transferred out
Work in process, November 31
Total units
(b)

Materials unit cost

Conversion unit cost
Total unit cost

Physical Units
45,000
25,000
70,000
$6.50
$3.84
$10.34

Equivalent Units_________________
Materials
Conversion Costs
45,000
45,000
25,000
5,000 (25,000 20%)
70,000
50,000

[($315,000 + $140,000) 70,000 units]

[($66,000 + $126,000) 50,000 units]

Cost assigned to work in process, November 31

Materials costs
$162,500
(25,000 units x $6.50)
Conversion costs
$ 19,200
(5,000 units x $3.84)
Total
$181,700
(c)

Cost assigned to units completed and transferred out: 45,000 x $10.34 = $487,800

FIFO
Beginning WIP
Started
Total

10,000
60,000
70,000

Beginning WIP
Completed & Transferred Out
Ending WIP
Total

10,000
35,000
25,000
70,000

Costs to be accounted for:

Beginning inventory
Added
Total costs
Cost per EUP:
Costs to be accounted for
Divide by
Units to be accounted for
EUP
Costa accounted for:
Completed & Transferred Out
Beg. WIP
Added

Materials

0%
100%
100%

35,000
25,000
60,000

Conversion Costs

40%
100%
20%

4,000
35,000
5,000 (25,000 x 20%)
44,000

$140,000
315,000
$455,000

$126,000
66,000
$192,000

$455,000

60,000
$ 7.58

$192,000

44,000
$4.36

$647,000

$266,000

POWERS CORPORATION
1.
Powers Company
Schedule of Equivalent Units for
Fifo and Weighted Average
May 31, 2013
FIFO
10,000
120,000
130,000
10,000
90,000
30,000
130,000

Beginning Work In Process

Units Started
Units to Acct. For
Beginning Work In Process
Started & Completed
Ending Work in Process
Units Accounted For
(a)
BWIP
S&C
EWIP
EUP

FIFO
Mat.

0
90,000
30,000
120,000

CC
7,500
90,000
9,000
106,500

Weighted Average
10,000
120,000
130,000
100,000
30,000
130,000

Beginning Work In Process

Units Started
Units to Acct. For
Transferred Out
Ending Work in Process
Units Accounted For

(b) Weighted Average

Mat.

CC

TO
EI
EUP

100,000
9,000
109,000

100,000
30,000
130,000

2.
Powers Company
Schedule of Average Cost Per Unit
FIFO and Weighted Average
May 31, 2013
(a) FIFO
Mat.
Costs $33,000
Eq Units 120,000
$.275/eq unit
Total cost/eq. unit

3.

CC
$109,695
106,500
$ 1.03/eq unit
$ 1.305/eq unit

Powers Company
Schedule of Assigned Costs
FIFO and Weighted Average
May 31, 2013
(a) FIFO
Beginning Work in Process
To complete (7,500 x $1.03) =
Started and Completed
90,000 x $1.305 =
Total costs transferred out
Ending Work in Process
30,000 x $ .275 =
9,000 x $1.03 =
Total costs accounted for
(b) Weighted Average
Completed
100,000 x $1.295 =
Ending Work in Process
30,000 x $ .27 =
9,000 x $1.025 =
Total costs accounted for

CHEMICAL X

(b) Weighted Average

Mat.
$ 35,100
130,000
$ .27/eq unit

$ 4,130
7,725
$ 11,855
117,450
$129,305

$ 8,250
9,270
$ 17,520
$146,825
$129,500
$ 8,100
9,225
$ 17,325
$146,825

CC

$111,725
109,000
$ 1.025/eq unit
$ 1.295/eq unit

a.

c.
Materials
46,500
9,000
(8,000)
47,500

b.

ConversionC
osts
46,500
3,000
(6,000)
43,500

PD

Mat

44,500
12,000
(10,000)
46,500

CC

44,500
0
0
44,500

44,500
2,400
(3,000)
43,900

Since the material in the second department goes in at the 50 percent point and the ending WIP inventory is
only at the 20 percent point, units complete is the same as the equivalents of material 44,500, given that units
started plus units in beginning WIP are equal to units complete plus ending WIP 10,000 + 46,500 - 44,500 =
12,000 units in ending WIP.

PATTERSON MANUFACTURING
a.
Complete
+ Equiv WIP
+ Normal Sp
+ Abnor Sp

TI
33,600
10,500
1,680
420
46,200

Mat
33,600
10,500
1,680
420
46,200

b. 33,600 x $9
1,680 x $9

$302,400
15,120
$317,520

c. 10,500 x $5
10,500 x $1
4,200 x $3

$52,500
10,500
12,600
$75,600

CC
33,600
4,200
1,680
420
39,900

TC = 46,200 x $5
46,200 x $1
39,900 x $3

$231,000
46,200
119,700
$396,900

COGM = $396,900 - 75,600 - 3,780 = $317,520

d. $5 = $18,900 + X
46,200
X = $231,000 - 18,900 = $212,100
e. ABN = 420 x $9 = $3,780
420 x $9 = $3,780
ELLIS INDUSTRIES
Complete
+ end
+ normal
+ abnormal

TI

Unit Cost

MAT
6,650
0
100
0
6,750

6,650
1,500
100
200
8,450

DL

End WIP
DL
MOH
TI

600 x $3.40
300 x $8.80
1,500 x $9.00

=
=
=

Abnormal Loss
DL
MOH
TI

60 x $3.40
30 x $8.80
200 x $9.00

=
=
=

COGM = $171,513 - 18,180 - 2,268 = $151,065

$ 2,040
2,640
13,500
$18,180
$ 204
264
1,800
$ 2,268

6,650
600
100
60
7,410

MOH

6,650
300
100
30
7,080

COOKING DEPARTMENT
Normal Sp = 11% x 61,000 = 6,710 units
FIFO
Abnormal Sp = 8,000 - 6,710 = 1,290 units
Mat
CC
Complete
+ End
+ Ab Sp
- Ave
- Beg
FIFO

61,000
16,000
1,290
78,290
(11,000)
67,290

61,000
12,000
1,290
74,290
(2,750)
71,540

Mat =

= $22.00

$942,000
71,540

= 13.17
$35.17

16,000 x $22.00
12,000 x $13.17

$352,000
158,040

CC =

WIP
Material
CC

Note:assume
that normal
spoilage are
included in the
completed units.

$1,480,000
67,290

$510,040
45,369

Loss = 1,290 x $35.17

COGM = $2,672,000 - 510,040 - 45,369 = $2,116,591

INCREDIBLE ICE CREAM

Incredible Ice Cream Company

Cost Report
October 31, 20XY
BWIP
Trans. In
Fruit
Acctble. For

5,000
5,500
1,200
11,700
TI

Transferred Out
EWIP
Abnormal Spoilage

9,000
1,700
1,000
11,700

Fruit
9,000
1,700
1,000
11,700

Container
9,000
0
0
9,000

TI
$ 9,700
12,400
$22,100
11,700
$1.89

Fruit
$10,500
54,000
$64,500
11,700
$5.51

Container
$0
11,000
$11,000
9,000
$1.22

$ 3,213
9,367
10,475

$ 23,055

$ 1,890
5,510
10,065

17,465

CC
9,000
1,020
980
11,000

Costs:
BWIP
Current
EUP
Per unit
Cost Assignment:
EWIP
1,700 x $1.89 =
1,700 x $5.51 =
1,020 x $10.27 =
Spoilage
1,000 x $1.89 =
1,000 x $5.51 =
980 x $10.27 =
Transferred Out
$210,600 - 23,055 - 17,465 =
Total accounted for

170,080
$210,600

CC
$ 15,000
98,000
$113,000
11,000
$10.27

WINTHROP COMPANY
BI 8,000 + Started 35,000 = Accountable for 43,000
Winthrop Company
Cost Report
March 31, 2013
Material
BWIP
S&C
EWIP
Norm
Abnorm.
Acctd. For

8,000
11,500
15,000
6,000
2,500
43,000

CC

0
11,500
15,000
0
2,500
29,000

1,600
11,500
8,250
0
2,500
23,850

$ 25,800
60,555

$ 86,355

Material: $50,000/29,000 = $1.72

Conversion Costs: $175,000/23,850 = $7.34
Cost Assignment:
Ending Work in Process
15,000 x $1.72 =
8,250 x $7.34 =
Abnormal Spoilage
2,500 x $9.06 =
Cost Transferred Out
$284,000 - 86,355 - 22,650 =

22,650
174,995

Total costs accounted for

$ 284,000

BI 8,000 + Started 35,000 = Accountable for 43,000

Winthrop Company
Cost Report
March 31, 2013
Transferred Out
Ending Work In Process
Normal Spoilage
Abnormal Spoilage 2,500
Accounted For

19,500
15,000
6,000
2,500
43,000

Material
19,500
15,000
0
2,500
37,000

CC
19,500
8,250
0
30,250

Material: $64,000/37,000 = $1.73

Conversion Costs: $220,000/30,250 = $ 7.27
Cost Assignment:
Ending Work in Process
15,000 x $1.73 =
8,250 x $7.27 =
Abnormal Spoilage
2,500 x $9.00 =
Transferred Out
$284,000 - 85,928 - 22,500 =
Total costs accounted for

$25,950
59,978

$ 85,928
22,500
175,572
$ 284,000