Wholesome Mills produces specialized flour using a two-stage process: milling and enrichment. The following information is...
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Wholesome Mills produces specialized flour using a two-stage process: milling and enrichment. The following information is available in the enrichment department for the month of June: Beginning WIP (pounds) Costs transferred from milling department Conversion costs (40% completed) Pounds transferred in June from milling department Ending work in process (pounds) Costs transferred from milling in June Conversion costs incurred in June $1,200 $800 1,600 8,000 800 $4,525 $3,270 The ending WIP was 30% complete with respect to conversion costs. a) Compute costs transferred out and costs in ending WIP for the enrichment department using (i) the weighted average method; and (ii) FIFO method. (5 points) (1 points) b) Which method results in higher ending balance in WIP and why? (Please do not round any intermediate calculations.) Wholesome Mills produces specialized flour using a two-stage process: milling and enrichment. The following information is available in the enrichment department for the month of June: Beginning WIP (pounds) Costs transferred from milling department Conversion costs (40% completed) Pounds transferred in June from milling department Ending work in process (pounds) Costs transferred from milling in June Conversion costs incurred in June $1,200 $800 1,600 8,000 800 $4,525 $3,270 The ending WIP was 30% complete with respect to conversion costs. a) Compute costs transferred out and costs in ending WIP for the enrichment department using (i) the weighted average method; and (ii) FIFO method. (5 points) (1 points) b) Which method results in higher ending balance in WIP and why? (Please do not round any intermediate calculations.)
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a To compute the costs transferred out and costs in ending work in process WIP for the enrichment department using the weighted average method and the ... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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