Question & Answer: Chapter 6, Problem 47P Show all steps: Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 10 Weighted-Average Method; Two Departments BDB Com…..

Chapter 6, Problem 47P Show all steps: Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 10 Weighted-Average Method; Two Departments BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Materials are added at the beginning of the process in Department A. Additional materials are added when the process is 50% complete in Department B. Conversion costs are incurred proportionally throughout the production processes in both departments. On April 1, Department A had 500 units in work-in-process estimated to be 30% complete for conversion; Department B had 300 units in work-in-process estimated to be 40% complete for conversion. During April. Department A started 2,000 units and complete 2,100 units; Department B completed 2,000 units. The work-in-process ending inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the work-in-process ending inventory in Department B is estimated to be 70% complete for conversion. The cost sheet for Department A shows that the units in the work-in-process beginning inventory had $2,750 in direct materials costs and $1,494 in conversion costs. The production costs incurred in April were $18,000 for direct materials and S21,000 for conversion. Department Bs work-in-process beginning inventory on April 1 was $6,100, of which $4,200 was transferred-in costs; it incurred $38,000 in direct materials costs and $24,350 in conversion costs in April. BDB Company uses the weighted-average method for departments A and B. Required 1. Prepare a production cost report tor Department A 50 80 70 100 110 120 130 140 150 2. Prepare a production cost report for Department B. Step-by-step solution 160 170 There is no solution to this problem yet. Get help from a Chegg subject expert.

Chapter 6, Problem 47P Show all steps: Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 10 Weighted-Average Method; Two Departments BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Materials are added at the beginning of the process in Department A. Additional materials are added when the process is 50% complete in Department B. Conversion costs are incurred proportionally throughout the production processes in both departments. On April 1, Department A had 500 units in work-in-process estimated to be 30% complete for conversion; Department B had 300 units in work-in-process estimated to be 40% complete for conversion. During April. Department A started 2,000 units and complete 2,100 units; Department B completed 2,000 units. The work-in-process ending inventory on April 30 in Department A is estimated to be 50% complete for conversion, and the work-in-process ending inventory in Department B is estimated to be 70% complete for conversion. The cost sheet for Department A shows that the units in the work-in-process beginning inventory had $2,750 in direct materials costs and $1,494 in conversion costs. The production costs incurred in April were $18,000 for direct materials and S21,000 for conversion. Department B’s work-in-process beginning inventory on April 1 was $6,100, of which $4,200 was transferred-in costs; it incurred $38,000 in direct materials costs and $24,350 in conversion costs in April. BDB Company uses the weighted-average method for departments A and B. Required 1. Prepare a production cost report tor Department A 50 80 70 100 110 120 130 140 150 2. Prepare a production cost report for Department B. Step-by-step solution 160 170 There is no solution to this problem yet. Get help from a Chegg subject expert.

Expert Answer

 

Answer 1.
Weighted Average Method
Production Cost Report – Department A
Particulars Physical Units Equivalent Units
Materials Conversion Costs
Units to be accounted for
Work in process – Beginning                       500
Started into production                    2,000
Total units                    2,500
Units accounted for
Transferred out                    2,100                    2,100                    2,100
Work in process, Ending (2500 – 2100)                       400                       400                        200
(100% – materials, 50% conversion costs)
Equivalent units accounted for                    2,500                    2,500                    2,300
Costs
Unit costs Materials Conversion Total
WIP, Beginning                    2,750                    1,494                    4,244
Costs incurred in the period                 18,000                 21,000                  39,000
Total Costs                 20,750                 22,494                  43,244
Equivalent units                    2,500                    2,300
Costs per Equivalent Units                      8.30                      9.78                    18.08
Cost Assignment Materials Conversion Total
Good Units completed & Transferred out (2100 Units)                 17,430                 20,538                  37,968
Total Cost of goods completed & Transferred out                 17,430                 20,538                  37,968
Work in Process – ending Inventory                    3,320                    1,956                    5,276
Total Cost accounted for                 20,750                 22,494                  43,244
Costs to be accounted for
Work in process, Beginning                    4,244
Started into production                  39,000
Total costs                  43,244
Cost Reconciliation Schedule
Costs accounted for
Transferred out                  37,968
Work in process, Ending
Materials                    3,320
Conversion costs                    1,956                    5,276
Total costs                  43,244
Answer 2.
Production Cost Report – Department B
Particulars Equivalent Units
Physical Units Deptt. A Materials Conversion Costs
Units to be accounted for
Work in process – Beginning                       300
Started into production                    2,100
Total units                    2,400
Units accounted for
Transferred out                    2,000                    2,000                    2,000                  2,000
Work in process, Ending                       400                       400                        400                     280
(100% – Deptt A, 100% – materials, 70% conversion costs)
Equivalent units accounted for                    2,400                    2,400                    2,400                  2,280
Costs
Unit costs Deptt. A Materials Conversion Total
WIP, Beginning                    4,200                           –                    1,900                  6,100
Costs incurred                 37,968                 38,000                  24,350             100,318
Total Costs                 42,168                 38,000                  26,250             106,418
Equivalent units                    2,400                    2,400                    2,280
Costs per Equivalent Units                    17.57                    15.83                    11.51                  44.92
Cost Assignment Deptt. A Materials Conversion Total
Good Units completed & Transferred out (2,000 Units)                 35,140                 31,667                  23,026               89,833
Total Cost of goods completed & Transferred out                 35,140                 31,667                  23,026               89,833
Work in Process – ending Inventory                    7,028                    6,333                    3,224               16,585
Total Cost accounted for                 42,168                 38,000                  26,250             106,418
Costs to be accounted for
Work in process, Beginning                  6,100
Started into production             100,318
Total costs             106,418
Cost Reconciliation Schedule
Costs accounted for
Transferred out               89,833
Work in process, Ending
Mixing                    7,028
Materials                    6,333
Conversion costs                    3,224               16,585
Total costs             106,418
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