Chaplin Corporation produces a product that passes through two departments. All materials are entered at the beginning of the process. For October, the following information has been prepared:
Units:
October 1 25,000
Started in October 300,000
October 31 45,000 (80% complete)
Costs
Costs assigned to beginning work-in-process:
Materials $100,000
Conversion 20,000
Manufacturing costs incurred during the month:
Materials $160,000
Conversion 60,000
Required:
a. Prepare an Equivalent Units of Produced schedule
b. Compute the unit cost for October using the weighted average method for both Materials and Conversion Costs. (Round unit costs to 2 decimal places.)
c. Determine the cost of goods transferred out (completed).
d. Determine the cost of ending work-in-process.
Solution
a. Schedule of Equivalent Units:
Cost Per Unit :
C. Cost of Goods Transferred Out:
d. Cost of Ending WIP:
.
Chaplin Corporation produces a product that passes through two departm.docx
1. Chaplin Corporation produces a product that passes through two departments. All materials are
entered at the beginning of the process. For October, the following information has been
prepared:
Units:
October 1 25,000
Started in October 300,000
October 31 45,000 (80% complete)
Costs
Costs assigned to beginning work-in-process:
Materials $100,000
Conversion 20,000
Manufacturing costs incurred during the month:
Materials $160,000
Conversion 60,000
Required:
a. Prepare an Equivalent Units of Produced schedule
b. Compute the unit cost for October using the weighted average method for both Materials and
Conversion Costs. (Round unit costs to 2 decimal places.)
c. Determine the cost of goods transferred out (completed).
d. Determine the cost of ending work-in-process.
2. Solution
a. Schedule of Equivalent Units:
Cost Per Unit :
C. Cost of Goods Transferred Out:
d. Cost of Ending WIP:
Direct Material % Conversion %
Transferred Out 280,000 280,000 100 280,000 100
Ending WIP 45,000 45,000 100 36,000 80
Total 325,000 325,000 316,000
