Carla Vista Inc. manufactures a single product in a continuous processing environment. All materials are added at
Question:
Carla Vista Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. To assign costs to inventories, the company uses weighted-average process costing.
The following information was available for 2022:
Sales (selling price per unit, $44) | $4,892,800 | |
Actual manufacturing overhead | 719,400 | |
Selling and administrative expenses | 357,520 |
Unit production costs: | ||
Direct materials (1 kilogram) | $7.00 | |
Direct labour (1/2 hour) | 9.00 | |
Manufacturing overhead | 10.00 | |
Total | $26.00 |
Units completed and transferred to finished goods | 152,600 units | |
Materials purchased | 136,250 kilograms | |
Materials used in process | 148,240 kilograms |
An inventory count at year end (December 31, 2022) revealed that the inventories had the following balances:
Raw materials | 8,720 kilograms | |
Work in process inventory (45% complete) | 23,980 units | |
Finished goods | 49,050 units |
The January 1, 2022, work in process inventory units are 70% complete. The unit cost of production was the same in 2022 as it was in 2021.
Calculate the following amounts for Carla Vista Inc.:
The opening (January 1, 2022) balance in units and costs of (1) raw materials, (2) work in process inventory, and (3) finished goods
Units | Cost | ||
---|---|---|---|
(1) | Opening Balance - Raw Materials | enter a number of units | $enter a dollar amount |
(2) | Opening Balance - Work in Process Inventory | enter a number of units | $enter a dollar amount |
(3) | Opening Balance - Finished Goods | enter a number of units | $enter a dollar amount |
The equivalent units of production for 2022 for (1) materials and (2) conversion costs
Direct Materials | Conversion | ||
---|---|---|---|
Equivalent units of production for 2022 | enter a number of units | enter a number of units |
The total cost for 2022 for (1) materials used and (2) conversion applied
Direct Materials | Conversion | ||
---|---|---|---|
Total cost for 2022 | enter a dollar amount | enter a dollar amount |
The cost of ending work in process inventory for 2022
Cost assigned to ending work in process inventory | $enter the cost assigned to ending work in process inventory in dollars |
The cost of units completed and transferred to finished goods
Cost of units completed and transferred to finished goods | $enter the cost of units completed and transferred to finished goods in dollars |
Managerial Accounting Tools For Business Decision Making
ISBN: 9781119709589
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell