GOALS AND OBJECTIVES a$)$ Reconcile the physical units $($units to account for and units accounted for$).$ Check

figure: There are $80,000$ units to account for. Account for the $80,000$ by identifying the

$3$ groups of units for the FIFO method as done in class.

b$)$ Which costs will be traced? Which costs will be the "blob$($s$)"$ which will be allocated

and form the cost pool $($s$)?$

c$)$ Compute the allocation base $-$ the equivalent units of production for both materials

and conversion.

d$)$ Compute the allocation rate $-$ the cost per equivalent unit for both materials and

conversion.

e$)$ How many equivalent units of materials are in the ending WIP? What is the dollar value

of this?

f$)$ How many equivalent units of conversion are in the ending WIP? What is the dollar

value of this?

g$)$ Add the dollars in e$)$ and f$)$ to determine the $ value of the ending WIP. What is it$?$

h$)$ Given you answer in g$),$ what would be the dollar value of the goods completed and

transferred to the next department? What is the journal entry for this?

equivs ant unit anc $$0\mathrm{.}90)$ per equivient unit far canversion for a total of $$2\mathrm{.}30$ per equive

Compute the equivalent units of production for Materials and Conversion and the unit

costs for under the following cases. Each case is independent:

a$)$ Beginning WIP $($BWIP$)$ was $50\%$ complete and EWIP is $10\%$ complete

b$)$ Beginning WIP $($BWIP$)$ was $80\%$ complete and EWIP is $50\%$ complete

c$)$ Beginning WIP $($BWIP$)$ was $70\%$ complete and EWIP is $380\%$ complete

d$)$ Beginning WIP is $0\%$ and ending WIP is $40\%($same as original$)$

$\backslash$ To complete all parts of a production report and assign costs to EWIP and FG including all journal

entries

$\backslash$checkmark To master the ability to compute equivalent units, unit costs, etc.

DELAWARE COMPANY

produces yarn made from imported wool. It is done in three processes: processing, spinning

and finishing. Raw wool is processed, spun, and finished before being shipped out to knitting and

weaving companies. In the processing department, material is added in the beginning of

processing, and conversion costs are added evenly throughout processing. The company uses

normal costing to apply overhead to production.

In the Processing Department $($the first department$),$ they began the month of August with

$10,000$ units in process which were $70$ percent complete as to conversion $($labor and overhead$).$

It started $70,000$ units into production during the month of August of which $20,000$ remained in

ending Work in Process inventory which were $40$ percent complete as to conversion costs. The

cost data for the Production Department is as follows: