Principles of Managerial Accounting · free preview
Equivalent Units and Cost in a Subsequent Processing Stage
Departments after the first carry transferred-in cost as a third layer alongside materials and conversion, computing equivalent units for all three and assigning cost to completed output and ending work in process.
1. The transferred-in layer
The transferred-in layer
2. The quantity and cost schedule
The quantity and cost schedule
3. Why the layers stay separate
Why the layers stay separate
4. Rolling through many departments
Rolling through many departments
5. Transferred-in meaning
What is transferred-in cost in a subsequent processing department?
6. Three cost pools
Which three cost pools does a subsequent processing department track?
7. Conversion equivalent units with 40 percent ending
A department finishes 6,000 units and ends with 2,000 units 40 percent complete on conversion. Compute conversion equivalent units.
8. Ending WIP three-layer cost
Ending work in process holds 2,000 units with transferred-in cost of 5.00 dollars each, materials at 2.00 dollars each, and 800 conversion equivalent units at 3.00 dollars. Compute total ending work in process cost.
9. Completed unit cost
Completed units carry 5.00 dollars transferred-in, 2.00 dollars materials, and 3.00 dollars conversion. Compute the full unit cost in dollars, number only.
10. Assignment reconciliation
Transferred out cost is 60,000 dollars and ending work in process is 16,400 dollars. Compute the total cost to account for in dollars, number only.
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