1Grand River Company produces a high-quality insulation material that passes through two production processes. Data for Novemberfor the first process follow:Work in process inventory, November 1Work in process inventory, November 30Materials cost in work in process inventory, November 1Conversion cost in work in process inventory, November 1Units started into productionUnits transferred to the next processMaterials cost added during NovemberConversion cost added during NovemberUnitsCompletion withRespect toMaterials114,00050%Completion withRespect toConversion25%92,00045%20%$ 57,000$ 5,700407,500429,500$366,810$151,065Required:1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units forNovember for the first process.Equivalent units of productionMaterials Conversion2. Compute the costs per equivalent unit for November for the first process. (Round your answers to 2 decimal places.)3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in November.(Round intermediate calculations to 2 decimal places.)

Name: 1Grand River Company produces a high-quality insulation material that
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Description: 1Grand River Company produces a high-quality insulation material that passes through two production processes. Data for Novemberfor the first process follow:Work in process inventory, November 1Work in process inventory, November 30Materials cost in

WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…

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1 Grand River Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow: Work in process inventory, November 1 Work in process inventory, November 30 Materials cost in work in process inventory, November 1 Conversion cost in work in process inventory, November 1 Units started into production Units transferred to the next process Materials cost added during November Conversion cost added during November Units Completion with Respect to Materials Completion with Respect to 114,000 92,000 50% Conversion 25% 45% 20% $ 57,000 $ 5,700 407,500 429,500 $366,810 $151,065 Required: 1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for November for the first process. Equivalent units of production Materials Conversion 2. Compute the costs per equivalent unit for November for the first process. (Round your answers to 2 decimal places.) 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in November. (Round intermediate calculations to 2 decimal places.)

1 Grand River Company produces a high-quality insulation material that passes through two production processes. Data for November for the first process follow: Work in process inventory, November 1 Work in process inventory, November 30 Materials cost in work in process inventory, November 1 Conversion cost in work in process inventory, November 1 Units started into production Units transferred to the next process Materials cost added during November Conversion cost added during November Units Completion with Respect to Materials Completion with Respect to 114,000 92,000 50% Conversion 25% 45% 20% $ 57,000 $ 5,700 407,500 429,500 $366,810 $151,065 Required: 1. Assume that the company uses the weighted-average method of accounting for units and costs. Determine the equivalent units for November for the first process. Equivalent units of production Materials Conversion 2. Compute the costs per equivalent unit for November for the first process. (Round your answers to 2 decimal places.) 3. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in November. (Round intermediate calculations to 2 decimal places.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 1CMA: During December, Krause Chemical Company had the following selected data concerning the manufacture...

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Seacrest Company uses a process-costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Required: 1. Using the weighted average method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs (Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferred out, and (e) a cost reconciliation. 2. CONCEPTUAL CONNECTION Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labor and overhead costs into one category. They are not tracking direct labor separately. Offer some reasons for this practice.
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