copy 1111

ACC 230
Dr. Tish Bates
Transferred to Bottling Department (60,000 gallons)............................. _______
January charges:
Direct material (61,000 gallons).............................................................
152,500
Direct labor……………………………………………………………………
Manufacturing overhead…………………………………………………….
73,600
48,800
January 31 inventory (_________ gallons, 70% processed).................. _______
Required
Assuming Godfrey uses the weighted average method in process costing, calculate the following
amounts for the Blending Department:
•
Number of units in the January 31 inventory.
•
Equivalent units for materials and conversion costs.
•
January costs per equivalent unit for materials and conversion costs.
•
Costs of the units transferred to the Bottling Department.
•
Costs of the incomplete units in the January 31 inventory.
Equivalent Units
Units
% work done
Direct materials
% work done
Conversion costs
Completed/Transferred
60,000
100%
60,000
100%
60,000
Ending inventory
6,000*
100%
6,000
70%
4,200 (6,000x70%)
Total (b)
66,000
66,000
64,200
Note:
(a) Ending inventory* (in units)
= Beginning inventory + Purchases - transferred
= 5,000 + 61,000 - 60,000
= 6,000 units
Thus, the number of units in January 31 inventory is 6,000 units.
Product cost report
Direct materials($)
Conversion costs($)
Total ($)
Beginning inventory
12,000
5,900
17,900
Current
152,500
122,400
274,900
Total
164,500
128,300
292,800
Divide: Equivalent Units
66,000
64,200
Average costs / Equivalent Units (c)
2.4924
1.9984
Completed/Transferred:
Amounts ($)
Direct materials
149,545 (60,000x2.4924)
Conversion costs
119,907(60,000x1.9984)
Cost of goods manufactured (d)
269,452
Ending inventory:
Direct materials
14,955 (6,000x2.4924)
Conversion costs
8,393 (4,200x1.9984)
Cost of ending inventory (e)
23,348
Total cost allocated
292,800