6-21) Funtime Inc. makes small toys in a one-department production process. Plastic is added at the beginning of the process; all other materials are considered indirect. The following information is available relative to September 2010 production activities:
Beginning WIP Inventory:15,000 toys (60% complete to labor; 75% complete as overhead)
Started into production: plastic for 620,000 toys
Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60 complete as to overhead)
a. Computed the EUP for direct material, direct labor, and overhead using weighted average process costing
b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.
c. Reconcile the calculations in parts (a) and (b)
6-7) Ro-Day-O Inc. manufactures belt buckles in a single step production process. The following information is available for June 2010:
Whole Unit Cost of material cost of labor
Beginning work in progress 200,000 $1,200,000 $1,728,000
Units started during period 1,000,000 7,800,000 9,612,000
Units in ending inventory 300,000
Beginning inventory units were over 100 percent complete as to material and 80 percent complete as to labor. The ending inventory units were 100 percent complete as to material and 50 percent as to labor. Overhead is applied to production at the rate of 60 percent of direct labor.
a. prepare a schedule to compute equivalent units of production by cost component assuming the weighted average method.
b. Determine the unit production costs for material and conversion.
c. Calculate the costs assigned to completed units and ending inventory for August 2010
Beginning WIP Inventory:15,000 toys (60% complete to labor; 75% complete as overhead)
Started into production: plastic for 620,000 toys
Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60 complete as to overhead)
a. Computed the EUP for direct material, direct labor, and overhead using weighted average process costing
b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.
c. Reconcile the calculations in parts (a) and (b)
6-7) Ro-Day-O Inc. manufactures belt buckles in a single step production process. The following information is available for June 2010:
Whole Unit Cost of material cost of labor
Beginning work in progress 200,000 $1,200,000 $1,728,000
Units started during period 1,000,000 7,800,000 9,612,000
Units in ending inventory 300,000
Beginning inventory units were over 100 percent complete as to material and 80 percent complete as to labor. The ending inventory units were 100 percent complete as to material and 50 percent as to labor. Overhead is applied to production at the rate of 60 percent of direct labor.
a. prepare a schedule to compute equivalent units of production by cost component assuming the weighted average method.
b. Determine the unit production costs for material and conversion.
c. Calculate the costs assigned to completed units and ending inventory for August 2010
