Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average...
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Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 10%. The company's controller suspects that the year- end dollar balances shown below in the inventory accounts may be incorrect. Units Costs Work in process, December 31 (materials 100% 25 000 60 000 complete and conversion 50% complete) Finished Goods, December 31 30 000 113 500 There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Cost Units Materials Conversion Work in process, Beginning of year (materials 20 000 22 000 48 000 100%, conversion 80% complete) Started into production 685 000 Costs added during the year 750 000 2 000 000 Units completed during the year 680 000 Required: 1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. 2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories. 3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31. Tambin Inc. produces a gasoline additive that, when added to the gas tank of the average automobile, is designed to increase gas mileage by 10%. The company's controller suspects that the year- end dollar balances shown below in the inventory accounts may be incorrect. Units Costs Work in process, December 31 (materials 100% 25 000 60 000 complete and conversion 50% complete) Finished Goods, December 31 30 000 113 500 There were no finished goods inventories at the beginning of the year. The company uses the weighted-average method of process costing. There is only one processing department. A review of the company's inventory and cost records shows the following: Cost Units Materials Conversion Work in process, Beginning of year (materials 20 000 22 000 48 000 100%, conversion 80% complete) Started into production 685 000 Costs added during the year 750 000 2 000 000 Units completed during the year 680 000 Required: 1. Determine the equivalent units and the costs per equivalent unit for materials and conversion for the year. 2. Determine the amount of cost that should be assigned to the ending work in process and finished goods inventories. 3. Prepare the necessary correcting journal entry to adjust the work in process and finished goods inventories to the correct balances as of December 31.
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Tambin Inc Inventory Costing 1 Equivalent Units and Costs per Equivalent Unit Equivalent Units Inven... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
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