B. Ex. 18.4 a. Work in Process: Packaging ……………………..

2,300
Work in Process: Mixing …………………….
To transfer Mixing Department costs to
Packaging Department in May.
b. Finished Goods Inventory ………………………. 6,700
Work in Process: Packaging …………………
To transfer Packaging Department costs to
Finished Goods Inventory in May.

Computations: Mixing
Beginning work in process $500
Costs transferred in 0
Costs incurred during May 3,000
Total costs in process during May 3,500
Ending work in process (1,200)
Costs transferred during May $2,300

B. Ex. 18.5

Direct
Input resources required Materials
To finish beginning inventory in process, September 1:
Direct materials (5,000 units require 0% to complete) 0
Conversion (5,000 units require 80% to complete)
To start and complete 15,000 units in September: 15,000
To start ending inventory in process, September 30:
Direct materials (2,000 units 100% complete) 2,000
Conversion (2,000 units 60% complete)
Equivalent units of input resources in September 17,000

© The McGraw-Hill Companies, Inc., 2008

BE18.4,5
 2,300

6,700

Packaging
$900
2,300
5,000
8,200
(1,500)
$6,700

Conversion

4,000
15,000

1,200
20,200

© The McGraw-Hill Companies, Inc., 2008

BE18.4,5
B. Ex. 18.6 a. $7 per equivalent unit of direct material
b. $9 per equivalent unit of conversion

Computations:
Direct
Input resources required Materials
To finish beginning inventory in process, March 1:
Direct materials (2,000 units require 10% to complete) 200
Conversion (2,000 units require 70% to complete)
To start and complete 20,800 units in March: 20,800
To start ending inventory in process, March 31:
Direct materials (1,000 units 80% complete) 800
Conversion (1,000 units 40% complete)
Equivalent units of input resources in March 21,800
Cost of direct materials and conversion incurred in March $152,600
Equivalent units of resources in March ÷ 21,800
Cost per equivalent unit of input resource in March $7

B. Ex. 18.7

Direct
Materials
Cost of direct materials and conversion incurred in July $380,000
Cost per equivalent unit of input resource in July ÷ 20
Total equivalent units of input resources in July 19,000
Less:
Equivalent units to finish beginning inventory:
Direct materials (5,000 units require 0% to complete) 0
Conversion (5,000 units require 70% to complete)
Equivalent units to start ending inventory:
Direct materials (4,000 units 100% complete) (4,000)
Conversion (4,000 units 40% complete)
Units started and completed in July 15,000

© The McGraw-Hill Companies, Inc., 2008

BE18.6,7
Conversion

1,400
20,800

400
22,600
$203,400
÷ 22,600
$9

Conversion
$603,000
÷ 30
20,100

(3,500)

(1,600)
15,000

© The McGraw-Hill Companies, Inc., 2008

BE18.6,7
Ex. 18.5

a. Equivalent full units of production:

March April
Beg. WIP 4,900 (7,000 × .7) 1,920 (4,800 × .4)
Started & Completed 11,500 18,200
(18,500 - 7,000) (23,000 - 4,800)
End. WIP 2,880 (4,800 × .6) 2,240 (6,400 × .35)
Total Equivalent Units 19,280 22,360

b. March April
Total manufacturing costs ………………………………… $6,979,360 $7,781,280
÷ Equivalent units produced …………………………… ÷ 19,280 ÷ 22,360
Total manufacturing cost per equivalent unit ………… $362 $348

Thus, manufacturing costs per equivalent unit decreased between March and April.

c. March April
Direct Materials costs ……………………………………… $978,460 $1,168,310
÷ Equivalent units produced …………………………… ÷ 19,280 ÷ 22,360
Total direct materials cost per equivalent unit ………. $50.75 $52.25

Thus, direct materials cost per equivalent unit increased between March and April.

© The McGraw-Hill Companies, Inc., 2008

E18.5
Ex. 18.6

a. Beginning work in process, January 1 0

Units started in January 10,000
Total units in process during January 10,000
Ending work in process, January 31 (2,000)
Units transferred to Finishing Department in January 8,000

Note: All of the units transferred were started and completed in January.

b. Direct
Input resources required Materials Conversion
To finish beginning inventory 0 0
(there was no beginning inventory)
To start and complete 8,000 units in January 8,000 8,000
To start ending inventory in process on January 31:
Direct materials (2,000 units 100% complete) 2,000
Conversion (2,000 units 30% complete) 600
Equivalent units of input resources in January 10,000 8,600

c. Direct
Materials Conversion
Cost of direct materials and conversion incurred in January $200,000 $258,000
Equivalent units of resources in January (see part b) ÷ 10,000 ÷ 8,600
Cost per equivalent unit of input resource in January $20 $30

d. Work in Process: Finishing Department 400,000

Work in Process: Cutting Department 400,000
To record the transfer of 8,000 units to the Finishing
Department at $50 per unit ($20 + $30).

e. 2,000 equivalent units of direct materials × $20 per unit $40,000

600 equivalent units of conversion × $30 per unit 18,000
Total costs assigned to work in process on January 31 $58,000

© The McGraw-Hill Companies, Inc., 2008

E18.6
Ex. 18.7

a. The number of units started by the Finishing Department equals the number of units
transferred in January from the Cutting Department, or 8,000 (see Exercise 18.6, part a).

b. Beginning work in process, January 1 0

Units started (transferred in) during January 8,000
Total units in process during January 8,000
Ending work in process, January 31 (1,000)
Units transferred to Finished Goods Inventory in January 7,000

Note: All of the units transferred were started and completed in January.

c. Cut Direct Trim

Input resources required Materials Materials Conversion
To finish beginning inventory (there was none) 0 0 0
To start and complete 7,000 units in January 7,000 7,000 7,000
To start ending inventory in process on January 31:
Cut material transferred in (1,000 units,
100% complete) 1,000
Direct materials (1,000 units 20% complete) 200
Conversion (1,000 units 40% complete) 400
Equivalent units of input resources in January 8,000 7,200 7,400

d. Cut Direct Trim

Materials Materials Conversion
Cost of input resources in January $400,000 $43,200 $81,400
Equivalent units in January (see part c) ÷ 8,000 ÷ 7,200 ÷ 7,400
Cost per equivalent unit in January $50 $6 $11

e. Finished Goods Inventory 469,000

Work in Process: Finishing Department 469,000
To record the transfer of 7,000 units to Finished
Goods
Inventory at $67 per unit ($50 + $6 + $11).

f. 1,000 equivalent units of cut materials × $50 $50,000

200 equivalent units of direct trim materials × $6 1,200
400 equivalent units of conversion × $11 4,400
Total costs assigned to work in process on January $55,600
31

© The McGraw-Hill Companies, Inc., 2008

E18.7
Ex. 18.8

a. Beginning work in process, August 1 200

Units started by Mixing Department in August 8,000
Total units in process during August 8,200
Ending work in process, August 31 (100)
1. Units transferred to the Baking Department in August 8,100
Beginning work in process, August 1 (200)
2. Units started and completed in August 7,900

b. Direct
Input resources required Materials Conversion
To finish beginning inventory in process on August 1:
Direct materials (200 gallons require 0% to complete) 0
Conversion (200 gallons require 80% to complete) 160
To start and complete 7,900 units in August 7,900 7,900
To start ending inventory in process on August 31
Direct materials (100 units 100% complete) 100
Conversion (100 units 60% complete) 60
Equivalent units of input resources in August 8,000 8,120

c. Direct
Materials Conversion
Cost of direct materials and conversion incurred in August $16,000 $8,120
Equivalent units of resources in August (see part b) ÷ 8,000 ÷ 8,120
Cost per equivalent unit of input resource in August $2 $1

d. Work in Process: Baking Department 24,300

Work in Process: Mixing Department 24,300
To record the transfer of 8,100 gallons of mix to the Finishing
Department in August:
Cost of beginning inventory on August 1 $440
August direct materials (7,900 equivalent units × $2) 15,800
August conversion (8,060 equivalent units × $1) 8,060
Total cost of units transferred in August $24,300

e. 100 equivalent units of direct materials × $2 per unit $200

60 equivalent units of conversion × $1 per unit 60
Total costs assigned to work in process on August 31 $260

© The McGraw-Hill Companies, Inc., 2008

E18.8
Ex. 18.11 (concluded)

f. 9,000 equivalent units of cut materials × $6 per unit $54,000

6,300 equivalent units of direct materials × $0.25 per unit 1,575
8,100 equivalent units of conversion × $1.75 per unit 14,175
Total costs assigned to work in process on August 31 $69,750

Ex. 18.12

a. Units transferred to the Painting Department in June 1,500

Add: Ending inventory in Pressing Department, June 30 500
Total units in process during June 2,000
Less: Beginning inventory in Pressing Department, June 1 (300)
Units started by Pressing Department in June 1,700

b. Units transferred to the Painting Department in June 1,500

Less: Beginning inventory in Pressing Department, June 1 (300)
Units started and completed by Pressing Department in June 1,200

c. Direct
Input resources required Materials Conversion
To finish beginning inventory in process on June 1:
Direct materials (300 units require 0% to complete) 0
Conversion (300 require 80% to complete) 240
To start and complete 1,200 units in June (see part b) 1,200 1,200
To start ending inventory in process on June 30
Direct materials (500 units 100% complete) 500
Conversion (500 units 40% complete) 200
Equivalent units of input resources in June 1,700 1,640

d. Direct
Materials Conversion
Cost of direct materials and conversion incurred in June $25,500 $41,000
Equivalent units of resources in June (see part c) ÷ 1,700 ÷ 1,640
Cost per equivalent unit of input resource in June $15 $25

© The McGraw-Hill Companies, Inc., 2008

E18.12