ASSIGNMENT - PROCESS COSTING
Landers Company
Landers Company has the following information available for May:
Beginning Work in Process Inventory
(25% complete as to conversion) 10,000 units
Started 120,000 units
Ending Work in Process Inventory
(30% complete as to conversion) 30,000 units
Beginning Work in Process Inventory Costs:
Material $ 2,100
Conversion 2,030
Current Period Costs:
Material $ 33,000
Conversion 109,695
All material is added at the start of production and all products completed are transferred out.
[Link] to Landers Company. Prepare an equivalent units schedule using the (a) FIFO and (b) weighted average method.
[Link] to Landers Company. Prepare a schedule showing the computation for cost per equivalent unit assuming the (a)
[Link] to Landers Company. Prepare a schedule showing the assignment of costs assuming the (a) FIFO and (b) weighted
[Link] Sweet Temptations Company has two processing departments, Cooking and Packaging. Ingredients are placed into
production at the beginning of the process in Cooking, where they are formed into various shapes. When finished, they
are transferred into Packaging, where the candy is placed into heart and tuxedo boxes and covered with foil. All material
added in Packaging is considered as one material for convenience. Since the boxes contain a variety of candies, they
are considered partially complete until filled with the appropriate assortment. The following information relates to the two
departments for February 20X7:
Cooking Department:
Beginning WIP (30% complete as to conversion) 4,500 units
Units started this period 15,000 units
Ending WIP (60% complete as to conversion) 2,400 units
Packaging Department:
Beginning WIP (90% complete as to material, 80% complete as 1,000 units
to conversion)
Units started during period ?
Ending WIP (80% complete as to material and 80% complete 500 units
as to conversion)
a. Determine equivalent units of production for both departments using the weighted average method.
b. Determine equivalent units of production for both departments using the FIFO method.
[Link] following costs were accumulated by Department 2 of Hughes Company during April:
Cost Transferred
from Dept. 1 Material Conversion Total
Costs
Beginning Inventory $ 17,050 $ 5,450 $ 22,500
Current Period Cost 184,000 $ 34,000 104,000 322,000
$ 201,050 $ 34,000 $ 109,450 $344,500
Production for April in Department 2 (in units):
WIP-April 1 2,000 60% complete
Complete period transferred 20,000
WIP-April 30 5,000 40% complete
Materials are not added in Department 2 until the very end of processing Department 2.
Required: Compute the cost of units completed and the value of ending WIP
6. Copperfield Manufacturing employs a weighted average process costing system for its products. One product
passes through three departments (Molding, Assembly, and Finishing) during production. The following activity took
place in the Finishing Department during April 20x6.
Units in beginning inventory 4,200
Units transferred in from Assembly 42,000
Units spoiled 2,100
Good units transferred out 33,600
The costs per equivalent unit of production for each cost failure area as follows:
Cost of prior departments $5.00
Raw material 1.00
Conversion 3.00
Total cost per EUP $9.00
Raw material is added at the beginning of the Finishing process without changing the number of units being processed.
Work in process inventory was 40 percent complete as to conversion on April 30. All spoilage was discovered at final
inspection. Of the total units spoiled, 1,680 were within normal limits.
REQUIRED: Compute the Cost of Goods Manufactured.
7. Lumberton Industries has two departments. Department 1 uses FIFO costing and Department 2 uses weighted
average.
Units are introduced into the process in Department 1 (this is the only material added in Department 1). Spoilage occurs
continuously through the department and normal spoilage should not exceed 10 percent of the units started.
Department 2 adds material (packaging) at the 75 percent completion point; this material does not cause an increase in
the number of units being processed. A quality control inspection takes place when the goods are 80 percent complete.
Spoilage should not exceed 5 percent of the units transferred in from Department 1.
The following production cost data are applicable for operations for August 20X7:
Department 1 Production Data
Beginning inventory (65% complete) 1,000
Units started 25,000
Units completed 22,000
Units in ending inventory (40% complete) 2,800
Department 1 Cost Data
Beginning inventory:
Material $ 1,550
Conversion 2,300 $ 3,850
Current period:
Material $38,080
Conversion 78,645 116,725
Total costs to account for $120,575
Department 2 Production Data
Beginning inventory (90% complete) 8,000
Units transferred in 22,000
Units completed 24,000
Units in ending inventory (20% complete) 4,500
Department 2 Cost Data
Beginning inventory:
Transferred in $40,800
Material 24,000
Conversion 4,320 $ 69,120*
Current period:
Transferred in $113,700
Material` 53,775
Conversion 11,079 178,554
Total costs to account for $247,674
REQUIRED: Compute the Cost of Goods Manufactured for Department 1 and Department 2.
8. Delightful Yogurt Company produces yogurt in two departments-Mixing and Finishing. In Mixing, all ingredients
except fruit are added at the start of production. In Finishing, fruit is added and then the mixture is placed into containers.
Adding the fruit to the basic yogurt mixture increases the volume transferred in by the number of gallons of fruit added.
Any spoilage that occurs is in the Finishing Department. Spoilage is detected just before the yogurt is placed into
containers or at the 98 percent completion point. All spoilage is abnormal.
Finishing Department
BWIP (100% fruit, 0% container, 30% CC) 5,000 gallons
Gallons transferred in 5,500
Gallons of fruit added 1,200
EWIP (100% fruit, 0% container, 60% CC) 1,700 gallons
Gallons transferred out 9,000
Abnormal spoilage 1,000
BWIP Costs:
Transferred In $ 9,700
Fruit 10,500
CC 15,000
Current Costs:
Transferred In 12,400
Fruit 54,000
Containers 11,000
CC 98,000
Total Costs $ 210,600
COMPUTE THE FOLLOWING
(using average method):
1. EUP
2. Cost Assignment