Explore BrainMass

Explore BrainMass

    Cost Flow in a Process Costing Environment

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Cost Flow in a Process Costing Environment

    1) Juman Company makes magnets all of the same size and shape. The materials and costs flow through 2 departments: Mixing and Forming. In the Mixing Department, the metal is melted in huge vats. The fully mixed metal is then siphoned off to the Forming Department, where the molten metal is poured into molds and allowed to cool.

    In the Mixing Department, the following material and cost flows were recorded in February:

    Beginning inventory, in pounds: 40,000
    Pounds started and completed in February 800,000
    Ending inventory 20,000

    Beginning inventory, materials, 90% complete $30,000
    Beginning inventory, conversion, 20% complete 50,000

    Materials added in 1,224,000
    Conversion costs added 1,610,000

    Ending inventory was 80% complete as to materials and 50% complete as to conversion.

    REQUIRED: Calculate the equivalent units, the cost per equivalent unit and costs in ending inventory and costs transferred out using the weighted average method.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:22 am ad1c9bdddf


    Solution Preview

    Please see the attachment. The way the figures are done.
    Units transferred out at given as 820,000. Units in ending inventory are 20,000. Total units would be 840,000. Beginning ...

    Solution Summary

    This solution provides assistance determining the cost flow in a process costing environment.