ACC 650 - Managerial Accounting

Process Costing

Revised Problem 4-29

Moravia Company processes and packages cream cheese. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Work in process, June 1 - 60,000 units:
Direct material: 100% complete cost of	110,000
Conversion: 30% complete, cost of	43,000
Balance in work in progress, June 1	153,000
Units started during June	180,000
Units completed during June and transferred out to finished-goods inventory	210,000
Work in process, June 30:
Direct material: 100% complete
Conversion: 80% complete
Costs Incurred During June:
Direct Material	420,000
Conversion Costs:
Direct Labor	93,250
Applied Manufacturing Overhead	283,400
Total Conversion Costs	376,650

Required: Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of units costs.

4. Analysis of total costs.

5. Construct an Excel spreadsheet and show all of the preceding requirements

Show how the solution would change if the following data change: June 1 work-in-process costs were $84,000 for direct material and $26,000 for conversion.

PLEASE SHOW THE WORK