Akmen Ch 6

Problem 6-57 Weighted Average Method, Nonuniform Inputs, Multiple Departments

1.      Prepare a production report for the mixing department using the weighted average method!

Benson Pharmaceuticals

Mixing Department

Production Report

For the Month of March

(Weighted Average Method)

UNIT INFORMATION

Units to account for:      Units in beginning work in process                10      Unit started during the period                     150           Total units to account for                        160
Unit to account for:     Unit Completed     Unit in ending work in process          Total units accounted for	Physical Flow        140          20        160	Equivalent Unit 140   10                150

COST INFORMATION

Cost to account for:      Beginning work in process             Incurred during the period           Total cost to account for Cost per equivalent unit

Materials $       252                  3,636 $    3,888

Coversion* $       846         13,854 $  14.700

Total $    1,098        17,490  $   18,588       123.92

Cost accounted for:     Goods transferred out (140x $123.92)     Goods in ending work in process:             (10x$123,92)                    Total cost accounted for

Transferred out $   17,439 ________ $   17,439

Ending Work in Process - $   1,239 $   1,239

Total $   17,439       1,239   $   18, 588

*Conversion= Labor+Overhead (200% x labor)

            Beginning work in process      : 282 + (282 x 2)         = $846

            Incurred during March            : 4,618 + (4,618 x 2)   = $13,854

2.      Prepare a production report for the encapsulating department using weighted average method!

Benson Pharmaceuticals

Encapsulating Department

Production Report

For the Month of March

(Weighted Average Method)

UNIT INFORMATION

Units to account for:      Units in beginning work in process          4,000      Unit started during the period              210,000           Total units to account for                 214,000		Equivalent Unit
Units accounted for: Unit Completed     Unit in ending work in process          Total units accounted for	Physical Flow 208,000      6,000 214.000	Trans in 208,000      6,000 214,000	Materials 208,000     6,000 214,000	Conversion 208,000     2,400 210,400

COST INFORMATION

Cost to account for:      Beginning work in process             Incurred during the period           Total cost to account for Cost per equivalent unit

Trans in 140 17,349 17,489 0.0817

Materials $       32           1,573      1,605 0.0075

Conversion* $     50            4,860     4,910 0.0233

Total $       222         23,783 24,004 0.1122

Cost accounted for:     Goods transferred out (208,000 x $0.1125)     Goods in ending work in process:         Trans in (6,000 x $0.0817)         Materials (6,000 x $0.0075)         Conversion (2,400 x $0.0233)                    Total cost accounted for

Transferred out $   23,400 - - _____-_____         $    23,400

Ending Work in Process $   1,239        490               45                56 $       591

Total $   23,400        1,239           490            45                  56       $  23,991

*Conversion: Labor + Overhead (150% of labor)

            Beginning work in process       : $20 + ($20 x 1.5)                   = $50

            Incurred during March                         : $1,944 + ($1,944 x 1.5)         = $4,860

3.      Matode rata-rata tertimbang dan metode FIFO menghasilkan biaya total yang sama dicatat. Perbedaan utama antara kedua metode adalah penanganan awal sebagian menyelesaikan unit persediaan barang dalam proses awal. FIFO memisahkan unit dalam persediaan awal dari unit dimulai dan diselesaikan selama periode. Sebaliknya, metode rata-rata tertimbang membuat ada perlakuan terpisah dari unit persediaan barang dalam proses awal. Dengan demikian, ada perbedaan antara harga pokok selesai metode rata-rata tertimbang dan FIFO. Demikian pula, ada perbedaan antara persediaan barang dalam proses awal di antara kedua metode. Metode rata-rata umumnya lebih mudah untuk digunakan karena perhitungannya lebih mudah. Metode ini paling sesuai jika hanya bahan baku, biaya konversi dan tingkat persediaan stabil. Metode FIFO paling sesuai digunakan apabila tingkat harga bahan baku, biaya konversi atau tingkat persediaan berfluktuasi. Metode FIFO lebih disukai untuk kepentingan pengendalian, karena biaya per unit untuk setiap periode independen terhadap periode sebelumnya.

Problem 6-58 (Appendix 6A) First-In, First Out Method

Refer to Problem 6-57

Prepare a production report for the mixing and encapsulating departments using the FIFO method.

Benson Pharmaceuticals

Mixing Department

Production Report

For the Month of March

(FIFO Method)

UNIT INFORMATION

Units to account for:      Units in beginning work in process                10      Unit started during the period                     150           Total units to account for                        160
Unit to account for:     Unit started and completed     Unit in beginning work in process     Unit in ending work in process          Total units accounted for	Physical Flow        130          10          20        160	Equivalent Unit 130     6    10                146

COST INFORMATION

Cost to account for:      Beginning work in process             Incurred during the period           Total cost to account for Cost per equivalent unit

Materials $       252                  3,636 $    3,888

Coversion* $       846         13,854 $  14.700

Total $    1,098        17,490  $   18,588       119.79

Cost accounted for:     Unit started and completed (130 x $119.79)     Goods in beginning work in process:             From prior period             From current period             Ending work in process             Total cost accounted for

Transferred out $   15,573       1,098         719 _______ $   17,390

Ending Work in Process - - - $   1,198 $   1,198

Total $   15,573      1,098         719       1,198   $   18, 588

*Conversion: Labor + Overhead (200% x labor)

            Beginning work in process      : 282 + (282 x 2)         = $846

            Incurred during March            : 4,618 + (4,618 x 2)   = $13,854

Benson Pharmaceuticals

Encapsulating Department

Production Report

For the Month of March

(FIFO Method)

UNIT INFORMATION

Units to account for:      Units in beginning work in process          4,000      Unit started during the period              210,000           Total units to account for                 214,000		Equivalent Unit
Units accounted for:     Unit started and completed     Unit in beginning work in process     Unit in ending work in process          Total unit accounted for	Physical Flow 204,000 4,000      6,000 214.000	Trans in 204,000 -      6,000 210,000	Materials 204,000 -     6,000 210,000	Conversion 204,000     2,000     2,400 208,400

COST INFORMATION

Cost to account for:      Beginning work in process             Incurred during the period           Total cost to account for Cost per equivalent unit

Trans in 140 17,390 17,530 0.0828

Materials $       32           1,573      1,605 0.0075

Conversion* $     50            4,860     4,910 0.0233

Total $        222         23,283 24,405 0.1136

Cost accounted for:     Unit started and completed             (204,000 x $0.1136)     Unit in beginning work in process     Work in process current period             (2,000 x $0.0233)     Goods in ending work in process:         Trans in (6,000 x $0.0828)         Materials (6,000 x $0.0075)         Conversion (2,400 x $0.0233)                    Total cost accounted for

Transferred out $   23,174          222            47 - - _____-_____         $    23,443

Ending Work in Process - - -        497               45                56 $       598

Total $   23,174           222           47          497            45                  56       $  24,041

*Conversion: Labor + Overhead (150% of labor)

            Beginning work in process      : $20 + ($20 x 1.5)                  = $50

            Incurred during March            : $1,944 + ($1,944 x 1.5)        = $4,860