Q20E Collins Company has the followin... [FREE SOLUTION]

Chapter 18: Q20E (page 1011)

Collins Company has the following data for the Assembly Department for August:
Unit in process at the beginning of august
900
Units started in august
2,000
Units completed and transferred
2,100
Units in process at the end of august
800
Conversion costs are added evenly throughout the process. The company uses the weighted-average method. Compute the equivalent units of production for direct materials and conversion costs for each independent scenario:
1. Units in process at the end of August are 20% complete; materials are added at the beginning of the process.
2. Units in process at the end of August are 80% complete; materials are added at the beginning of the process.
3. Units in process at the end of August are 20% complete; materials are added at the end of the process.
4. Units in process at the end of August are 80% complete; materials are added at the halfway point.

Short Answer

Expert verified

Cases	EUP for direct material	EUP for conversion cost
Units in process at the end of August are 20% complete; materials are added at the beginning of the process.	2,900	2,260
Units in process at the end of August are 80% complete; materials are added at the beginning of the process.	2,900	2,740
Units in process at the end of August are 20% complete; materials are added at the end of the process.	2,100	2,260
Units in process at the end of August are 80% complete; materials are added at the halfway point.	2,900	2,740

Step by step solution

Meaning of Manufacturing Process

The manufacturing process means the procedure undertaken by the manufacturing companies for converting the raw material into the finished goodsby using the machinery, labor, etc. Manufacturing is integral to the economy.

Equivalent unit of production for direct materials when the unit in process at the end of August is 20%

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 100 %) = 2, 900$

Equivalent unit of production for conversion cost when the unit in process at the end of August is 20%

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 20 %) = 2, 260$

Equivalent unit of production for direct materials when the unit in process at the end of August is 80%

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 100 %) = 2, 900$

Equivalent unit of production for conversion cost when the unit in process at the end of August is 80%

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 80 %) = 2, 740$

Equivalent unit of production for direct materials when the unit in process at the end of August is 20%, and the materials are added at the end of the process.

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 0 %) = 2, 100$

Equivalent unit of production for conversion cost when the unit in process at the end of August is 20%,and the materials are added at the end of the process.

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 20 %) = 2, 260$

Equivalent unit of production for direct materials when the unit in process at the end of August is 80%, and the materials are added at the halfway point

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 100 %) = 2, 900$

Equivalent unit of production for conversion cost when the unit in process at the end of August is 80%,and the materials are added at the Halfway point

$EUP = (Completedunits 脳 Completion %) + (Inprocessunits 脳 Completion %) = (2, 100 脳 100 %) + (800 脳 80 %) = 2, 740$

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	UNITS	COSTS
Beginning Work-in-Process Inventory	0	\(0
Started in Production in August	26,000	54,000*
Total to Account For	26,000	\)54,000
Completed and Transferred to Packaging Department during August	21,000	?
Ending Work-in-Process Inventory (30% complete for direct materials and 60% complete for conversion work)	5,000	?
Total Accounted For	26,000	\(54,000
* Includes \)18,000 direct materials and $36,000 conversion costs

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Short Answer

Step by step solution

Meaning of Manufacturing Process

Equivalent unit of production for direct materials when the unit in process at the end of August is 20%

Equivalent unit of production for conversion cost when the unit in process at the end of August is 20%

Equivalent unit of production for direct materials when the unit in process at the end of August is 80%

Equivalent unit of production for conversion cost when the unit in process at the end of August is 80%

Equivalent unit of production for direct materials when the unit in process at the end of August is 20%, and the materials are added at the end of the process.

Equivalent unit of production for conversion cost when the unit in process at the end of August is 20%,and the materials are added at the end of the process.

Equivalent unit of production for direct materials when the unit in process at the end of August is 80%, and the materials are added at the halfway point

Equivalent unit of production for conversion cost when the unit in process at the end of August is 80%,and the materials are added at the Halfway point

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Unit in process at the beginning of august	900
Units started in august	2,000
Units completed and transferred	2,100
Units in process at the end of august	800