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Category > Accounting Posted 15 Aug 2017 My Price 11.00

Moravia Company

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process.

 

Work in process, April 1—10,000 units:

 

 

 

 

 

 

 

 

 

 

 

 

 

■  

Direct material: 100% complete, cost of ........................................................................................

$  22,000

 

Conversion: 20% complete, cost of ...............................................................................................

4,500

2. Equivalent units, direct

Balance in work in process, April 1 ................................................................................................

$  26,500

material: 110,000

Units started during April ..................................................................................................................

100,000

3. Conversion, cost per

equivalent unit: $1.81

Units completed during April and transferred out to finished-goods inventory ....................................... Work in process, April 30:

80,000

 

 
 

 

 

 

 

 

 

Direct material: 100% complete Conversion: 331∕3% complete

Costs incurred during April:

 

Direct material..............................................................................................................................

$198,000

Conversion costs:

Direct labor  .............................................................................................................................

 

$ 52,800

Applied manufacturing overhead ..............................................................................................

105,600

Total conversion costs ..............................................................................................................

$158,400

 

Required:         Prepare schedules to accomplish each of the following process-costing steps for the month of April. Use the weighted-average method of process costing.

1.      Analysis of physical flow of units.

2.      Calculation of equivalent units.

3.      Computation of unit costs.

4.      Analysis of total costs.

5.      Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: the April 1 work-in-process costs were $27,000 for direct material and $5,000 for conversion.

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Aug 2017 09:08 AM My Price 11.00

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