Ending inventory ... 100% 70% 70% 1,000 27,000
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Cost from preceding department ... $ 8,450 Materials ... 1,395 Labor... 106 Factory overhead... 659
Total cost in beginning inventory... $ 10,610 Cost added during current period:
Cost from preceding department... $179,200 27,000 $ 6.95 Materials ... 28,305 27,000 1.10 Labor... 19,919 26,700 .75 Factory overhead... 60,751 26,700 2.30
Total cost added during current period... $288,175
P6-4 (Concluded)
%
Cost Accounted for as Follows Units Complete Unit Cost Total Cost
Transferred to Finished Goods ... 26,000 100% $11.10 $288,600 Work in Process, ending inventory:
Cost from preceding department .... 1,000 100% $ 6.95 $6,950 Materials ... 1,000 100% 1.10 1,100
Labor ... 1,000 70% .75 525 Factory overhead ... 1,000 70% 2.30 1,610 10,185
Total cost accounted for ... $298,785
*Total number of equivalent units required in the cost accounted for section determined as follows: Prior Dept.
Cost Materials Labor Overhead
Equivalent units transferred out ... 26,000 26,000 26,000 26,000 Equivalent units in ending inventory .... 1,000 1,000 700 700 Total equivalent units... 27,000 27,000 26,700 26,700
** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section (2) Work in Process—Blending Department ... 129,100
Work in Process—Finishing Department... 28,305
Materials ... 157,405 Work in Process—Blending Department ... 6,880
Work in Process—Finishing Department... 19,919
Payroll ... 26,799 Work in Process—Blending Department ... 29,065
Work in Process—Finishing Department... 60,751
Applied Factory Overhead ... 89,816 Work in Process—Finishing Department... 179,200
Work in Process—Blending Department ... 179,200
Finished Goods inventory ... 288,600
P6-5
(1) Hi-tech Chemical Corporation
Refining Department Cost of Production Report
For March
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory ... 800 Started in process this period... 7,200 8,000
Transferred to Blending Department ... 7,000
Ending inventory... 100% 75% 50% 1,000 8,000
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Materials ... $728 Labor... 30 Factory overhead... 60
Total cost in beginning inventory ... $818 Cost added during current period:
Materials ... $7,272 8,000 $ 1.00 Labor ... 1,520 7,750 .20 Factory overhead... 2,940 7,500 .40
Total cost added during current period... $11,732
Total cost charged to department ... $12,550 $ 1.60 %
Cost Accounted for as Follows Units Complete Unit Cost Total Cost
Transferred to Blending Department... 7,000 100% $1.60 11,200
Work in Process, ending inventory:
Materials ... 1,000 100% $1.00 $1,000 Labor ... 1,000 75% .20 150
Factory overhead ... 1,000 50% .40 200 1,350
Total cost accounted for... $12,550
*Total number of equivalent units required in the cost accounted for section determined as follows: Materials Labor Overhead
Equivalent units transferred out ... 7,000 7,000 7,000
Equivalent units in ending inventory .... 1,000 750 500
Total equivalent units... 8,000 7,750 7,500
** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section
P6-5 (Continued)
Hi-tech Chemical Corporation Blending Department Cost of Production Report
For March
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 1,400
Received from Refining Department .... 7,000
Added to process in Blending Department 1,800
10,200
Transferred to Finished Goods ... 9,200
Ending inventory ... 80% 40% 40% 1,000 10,200
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Cost from preceding department... $ 1,754 Materials ... 620 Labor... 68 Factory overhead ... 160 Total cost in beginning inventory... $ 2,602 Cost added during current period:
Cost from preceding department... $11,200 10,200 $1.27 Materials ... 4,380 10,000 .50 Labor... 3,100 9,600 .33 Factory overhead... 5,600 9,600 .60
Total cost added during current period ... $24,280
P6-5 (Concluded)
%
Cost Accounted for as Follows Units Complete Unit Cost Total Cost
Transferred to Finished Goods ... 9,200 100% $2.70 $24,840 Work in Process, ending inventory:
Cost from preceding department .... 1,000 100% $1.27 $1,270 Materials ... 1,000 80% .50 400 Labor ... 1,000 40% .33 132
Factory overhead ... 1,000 40% .60 240 2,042
Total cost accounted for... $26,882
*Total number of equivalent units required in the cost accounted for section determined as follows:
Prior Dept.
Cost Materials Labor Overhead
Equivalent units transferred out ... 9,200 9,200 9,200 9,200
Equivalent units in ending inventory 1,000 800 400 400
Total equivalent units ... 10,200 10,000 9,600 9,600
** Total cost (i.e., the cost in beginning inventory plus the cost added during the current period) divided by the total number of equivalent units required in the cost accounted for section (2)
Work in Process—Refining Department ... 7,272 Work in Process—Blending Department ... 4,380
Materials ... 11,652 Work in Process—Refining Department ... 1,520
Work in Process—Blending Department ... 3,100
Payroll ... 4,620 Work in Process—Refining Department ... 2,940
Work in Process—Blending Department ... 5,600
Applied Factory Overhead ... 8,540
Work in Process—Blending Department ... 11,200
Work in Process—Refining Department ... 11,200
Finished Goods Inventory ... 24,840
P6-6 APPENDIX
(1) Upton Manufacturing Company
Cutting Department Cost of Production Report
For October
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 90% 40% 20% 1,000
Started in process this period ... 9,000
10,000
Transferred to Assembly Department ... 8,500
Ending inventory ... 100% 80% 100% 1,500 10,000
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Materials ... $8,010 Labor... 1,750 Factory overhead... 790 Total cost in beginning inventory... $ 10,550 Cost added during current period:
Materials ... $ 81,900 9,100 $ 9.00 Labor... 18,600 9,300 2.00 Factory overhead ... 39,200 9,800 4.00
Total cost added during current period... $139,700
Total cost charged to department ... $150,250 $15.00
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Assembly Department:
Beginning inventory ... $10,550
Cost to complete:
Materials ... 1,000 10% $ 9.00 900 Labor ... 1,000 60% 2.00 1,200
Factory overhead ... 1,000 80% 4.00 3,200 $ 15,850
Started and completed this period . 7,500 100% 15.00 112,500
Total cost transferred to Assembly
Department ... $128,350
Work in Process, ending inventory:
Materials ... 1,500 100% $ 9.00 $13,500 Labor ... 1,500 80% 2.00 2,400
Factory overhead ... 1,500 100% 4.00 6,000 21,900
P6-6 APPENDIX (Continued)
* Number of equivalent units of cost added during the current period determined as follows: Materials Labor Overhead
To complete beginning inventory ... 100 600 800
Started and completed this period 7,500 7,500 7,500
Ending inventory... 1,500 1,200 1,500 Total equivalent units ... 9,100 9,300 9,800
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
P6-6 APPENDIX (Continued)
Upton Manufacturing Company Assembly Department Cost of Production Report
For October
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 75% 60% 60% 2,000
Received from Cutting Department... 8,500
10,500
Transferred to Finished Goods Inventory 9,500
Ending inventory ... 60% 40% 40% 1,000 10,500
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Cost from preceding department... $ 4,000 Materials ... 400 Labor... 800 Factory overhead... 1,600
Total cost in beginning inventory... $ 6,800 Cost added during current period:
Cost from preceding department... $128,350 8,500 $15.10 Materials ... 30,100 8,600 3.50 Labor... 21,315 8,700 2.45 Factory overhead ... 30,015 8,700 3.45
Total cost added during current period... $209,780
Total cost charged to department ... $216,580 $24.50
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Finished Goods:
Beginning inventory ... $ 6,800
Cost to complete:
Materials ... 2,000 25% $ 3.50 1,750 Labor ... 2,000 40% 2.45 1,960
Factory overhead ... 2,000 40% 3.45 2,760 $ 13,270
Started and completed this period . 7,500 100% 24.50 183,750
Total cost transferred to Finished
Goods ... $197,020
Work in Process, ending inventory:
Cost from preceding department .... 1,000 100% $15.10 $15,100 Materials ... 1,000 60% 3.50 2,100 Labor ... 1,000 40% 2.45 980
Factory overhead ... 1,000 40% 3.45 1,380 19,560
P6-6 APPENDIX (Concluded)
*Number of equivalent units of cost added during the current period determined as follows: Prior Dept.
Cost Materials Labor Overhead
To complete beginning inventory ... 0 500 800 800
Started and completed this period 7,500 7,500 7,500 7,500 Ending inventory... 1,000 600 400 400 Total equivalent units ... 8,500 8,600 8,700 8,700
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
(2) Work in Process—Cutting Department ... 81,900 Work in Process—Assembly Department ... 30,100
Materials ... 112,000 Work in Process—Cutting Department ... 18,600
Work in Process—Assembly Department ... 21,315
Payroll ... 39,915 Work in Process—Cutting Department ... 39,200
Work in Process—Assembly Department ... 30,015
Applied Factory Overhead... 69,215 Work in Process—Assembly Department ... 128,350
Work in Process—Cutting Department ... 128,350
Finished Goods Inventory ... 197,020
P6-7 APPENDIX
(1) Felicia Manufacturing Company
Fabricating Department Cost of Production Report
For August
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 100% 40% 80% 400
Started in process this period ... 1,200
1,600
Transferred to Finishing Department .... 1,100
Ending inventory ... 100% 80% 90% 500 1,600
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Materials ... $ 29,280 Labor... 1,900 Factory overhead... 11,800 Total cost in beginning inventory... $ 42,980 Cost added during current period:
Materials ... $90,000 1,200 $ 75.00 Labor... 16,080 1,340 12.00 Factory overhead... 46,740 1,230 38.00
Total cost added during current period... $152,820
P6-7 APPENDIX (Continued)
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Finishing Department:
Beginning inventory ... $42,980
Cost to complete:
Materials ... 400 0% $ 75.00 0 Labor ... 400 60% 12.00 2,880
Factory overhead ... 400 20% 38.00 3,040 $ 48,900
Started and completed this period 700 100% 125.00 87,500
Total cost transferred to Finishing
Department ... $136,400
Work in Process, ending inventory:
Materials ... 500 100% $ 75.00 $37,500 Labor ... 500 80% 12.00 4,800
Factory overhead ... 500 90% 38.00 17,100 59,400
Total cost accounted for ... $195,800
*Number of equivalent units of cost added during the current period determined as follows: Materials Labor Overhead To complete beginning inventory ... 0 240 80 Started and completed this period... 700 700 700 Ending inventory ... 500 400 450 Total equivalent units... 1,200 1,340 1,230
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
P6-7 APPENDIX (Continued)
Felicia Manufacturing Company Finishing Department Cost of Production Report
For August
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 40% 20% 20% 600
Received from Fabricating Department 1,100
1,700
Transferred to Finished Goods Inventory 1,300
Ending inventory ... 100% 60% 60% 400 1,700
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Cost from preceding department... $ 74,000 Materials ... 230 Labor... 1,600 Factory overhead ... 2,520 Total cost in beginning inventory ... $ 78,350 Cost added during current period:
Cost from preceding department... $136,400 1,100 $ 124.00 Materials ... 2,920 1,460 2.00 Labor... 19,880 1,420 14.00 Factory overhead ... 28,400 1,420 20.00
Total cost added during current period... $187,600
Total cost charged to department ... $265,950 $ 160.00
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Finished Goods:
Beginning inventory ... $78,350
Cost to complete:
Materials ... 600 60% $ 2.00 720 Labor ... 600 80% 14.00 6,720
Factory overhead ... 600 80% 20.00 9,600 $ 95,390
Started and completed this period . 700 100% 160.00 112,000
Total cost transferred to Finished
Goods ... $207,390
Work in Process, ending inventory:
Cost from preceding department .... 400 100% $124.00 $49,600 Materials ... 400 100% 2.00 800 Labor ... 400 60% 14.00 3,360
Factory overhead ... 400 60% 20.00 4,800 58,560
6-7 APPENDIX (Concluded)
*Number of equivalent units of cost added during the current period determined as follows: Prior Dept.
Cost Materials Labor Overhead
To complete beginning inventory ... 0 360 480 480
Started and completed this period 700 700 700 700
Ending inventory... 400 400 240 240 Total equivalent units ... 1,100 1,460 1,420 1,420
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
(2) Work in Process—Fabricating Department ... 90,000 Work in Process—Finishing Department... 2,920
Materials ... 92,920 Work in Process—Fabricating Department ... 16,080
Work in Process—Finishing Department... 19,880
Payroll ... 35,960 Work in Process—Fabricating Department ... 46,740
Work in Process—Finishing Department... 28,400
Applied Factory Overhead... 75,140 Work in Process—Finishing Department... 136,400
Work in Process—Fabricating Department ... 136,400
Finished Goods Inventory ... 207,390
P6-8 APPENDIX
(1) Tatanach Beverage Company
Mashing Department Cost of Production Report
For September
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory... 90% 60% 30% 600
Started in process this period ... 3,000
3,600
Transferred to Blending Department... 3,100
Ending inventory ... 60% 40% 20% 500 3,600
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Materials ... $ 1,088 Labor... 172 Factory overhead... 172 Total cost in beginning inventory... $ 1,432 Cost added during current period:
Materials ... $ 6,006 2,860 $2.10 Labor... 1,470 2,940 .50 Factory overhead... 3,020 3,020 1.00
Total cost added during current period... $10,496
P6-8 APPENDIX (Continued)
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Blending Department:
Beginning inventory ... $1,432
Cost to complete:
Materials ... 600 10% $2.10 126 Labor ... 600 40% .50 120
Factory overhead ... 600 70% 1.00 420 $ 2,098
Started and completed this period 2,500 100% 3.60 9,000
Total cost transferred to Blending
Department ... $11,098
Work in Process, ending inventory:
Materials ... 500 60% $2.10 $ 630 Labor ... 500 40% .50 100
Factory overhead ... 500 20% 1.00 100 830
Total cost accounted for... $11,928
*Number of equivalent units of cost added during the current period determined as follows: Materials Labor Overhead
To complete beginning inventory ... 60 240 420
Started and completed this period . 2,500 2,500 2,500
Ending inventory... 300 200 100 Total equivalent units ... 2,860 2,940 3,020
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
P6-8 APPENDIX (Continued)
Tatanach Beverage Company Blending Department Cost of Production Report
For September
Quantity Schedule Materials Labor Overhead Quantity
Beginning inventory ... 50% 20% 20% 1,000
Received from Mashing Department ... 3,100
Added to process in Blending Department ... 3,100
7,200
Transferred to Finished Goods Inventory ... 6,400
Ending inventory... 100% 60% 60% 800 7,200
Cost Charged to Department Total Equivalent Unit
Beginning inventory: Cost Units* Cost**
Cost from preceding department... $ 1,770 Materials ... 100 Labor... 55 Factory overhead... 74
Total cost in beginning inventory... $ 1,999 Cost added during current period:
Cost from preceding department... $11,098 6,200 $1.79 Materials ... 1,407 6,700 .21 Labor... 2,004 6,680 .30 Factory overhead... 2,672 6,680 .40
Total cost added during current period... $17,181
Total cost charged to department ... $19,180 $2.70
Cost Accounted for as Follows Units Current % Unit Cost Total Cost
Transferred to Finished Goods:
Beginning inventory ... $1,999
Cost to complete:
Materials ... 1,000 50% $ .21 105 Labor ... 1,000 80% .30 240
Factory overhead ... 1,000 80% .40 320 $ 2,664
Started and completed this period 5,400 100% 2.70 14,580
Total cost transferred to Finished
Goods ... $17,244
Work in Process, ending inventory:
Cost from preceding department .... 800 100% $1.79 $1,432 Materials ... 800 100% .21 168 Labor ... 800 60% .30 144
Factory overhead ... 800 60% .40 192 1,936
P6-8 APPENDIX (Concluded)
*Number of equivalent units of cost added during the current period determined as follows: Prior Dept.
Cost Materials Labor Overhead
To complete beginning inventory ... 0 500 800 800
Started and completed this period 5,400 5,400 5,400 5,400 Ending inventory... 800 800 480 480 Total equivalent units ... 6,200 6,700 6,680 6,680
** Cost added during the current period divided by the number of equivalent units of cost added dur- ing the current period
(2) Work in Process—Mashing Department ... 6,006 Work in Process—Blending Department ... 1,407
Materials ... 7,413 Work in Process—Mashing Department ... 1,470
Work in Process—Blending Department ... 2,004
Payroll ... 3,474 Work in Process—Mashing Department ... 3,020
Work in Process—Blending Department ... 2,672
Applied Factory Overhead... 5,692
Work in Process—Blending Department ... 11,098
Work in Process—Mashing Department ... 11,098
Finished Goods Inventory ... 17,244
CHAPTER 7
DISCUSSION QUESTIONS
7-1