This exercise relates to the Double Diamond Skis' Shaping and Milling Department that was discussed earlier in the chapter. The Excel worksheet form that appears below consolidates data from Exhibits 4-5 and 4-8. Download the workbook containing this form from Connect, where you will also receive instructions about how to use this worksheet form.

Exhibits: 4 - 5 Shaping and Milling Department Production Data for May

Exhibits 4 - 8: Shaping and Milling Department Cost Data for May

You should proceed to the requirements below only after completing your worksheet.
Required:
1. Check your worksheet by changing the beginning work in process inventory to 100 units, the units started into production during the period to 2,500 units, and the units in ending work in process inventory to 200 units, keeping all of the other data the same as in the original example. If your worksheet is operating properly, the cost per equivalent unit for materials should now be $152.50 and the cost per equivalent unit for conversion should be $145.50. If you do not get these answers, find the errors in your worksheet and correct them. How much is the total cost of the units transferred out? Did it change? Why or why not?
2. Enter the following data from a different company into your worksheet:
Beginning work in process inventory:
Units in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Completion with respect to materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%
Completion with respect to conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%
Costs in the beginning work in process inventory:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $800
Units started into production during the period . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
Costs added during the period:
Materials cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,400
Conversion cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,765
Ending work in process inventory:
Units in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Completion with respect to materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100%
Completion with respect to conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30%
What is the cost of the units transferred out?
3. What happens to the cost of the units transferred out in part (2) above if the percentage completion with respect to conversion for the beginning inventory is changed from 20% to 40% and everything else remains the same? What happens to the cost per equivalent unit for conversion? Explain.

Percent Complete Shaping and Milling Department Units Materlals Converslon Beginning work In process Inventory ries ailion 200 55% 30% Units completed during May and transferred to the next department. 4,800 1Ox) 100%. 40% 100%" 25% "We always assume that units transferred out of a department are 100% complete with respect to the processing done In that department. Materlals Conversion Total Cost of beginning work In process Inventory Costs added during the perlod Total cost $ 9,600 5,575 S 15,175 368,600350,900 719,500 $378,200 356,475 $734,675 1 Chapter 4: Applying Excel 3 Data 4 Beginning work in process inventory 5 Units in process 6 Completion with reepect to materisalte 7 Completion wth respect to conversion 8 Costs in the beginning work in process inventory 200 65% 30% 9 Materals cost $9,600 $5,575 5,000 10 Coversion cost 11 Units started into production during the period 12 Costs addad to production dunng tha panod 13 Materials cost 14 Conversion cost S368,600 $350,900 15 Ending work in procees inventory. 16 Units in process 17 Completion with respect to materials 18 Completion with respect to comversion 400 40% 25% 20 Enter a fornula info sach of ths cels marked wth a below 22 Weighted-Average method 23 24 25 26 Units transferred to the next department 27 Ending work in process inventory 28 Materials 29 Conversion 30 Equivalent units of production 31 Equivalent LUnits of Production Maials Conversion Costs per Equivalent Unit Matorials Convarsion 34 Cost of beginning work in process imentary 35 Costs added during the period 36 Total cost 7 Equivalent units of production 38 Cost per equivalent unit 40 Costs of Ending Work in Process Inventory and the Units Transferred Out Materials Conversion Total 42 Ending work in process inventory 43 Equivalant units of production 44 Cost per equiaent unit 45 Cost of anding work in process invantory 46 47 Uhits completed and transfered out 48 Units transfermed to the next department 4 Cost per equivalent unit 50 Cost of units transfered out 51 52 53 Costs to be accounted for 54 Cost of baginning work in process invantory 55 Costs added to production during the period 56 Total cost to be accounted for 57 Costs accountod for as folaws: 58 Cost of ending work in process inventory 59 Cost of units transferred out 60 Total cost accounted for Cost Reconciliation