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Costing: Work Progress at Concordia Corp.

See the attached file.

1) Concordia Corp shows the following information concerning the work in process at its plant:

Beginning inventory was partially complete (materials are 100% complete:conversion costs are 60% complete)
Started this month 180,000 units
Transferred out,150,000 units
Ending inventory,100,000 (materials are 100% complete;conversion are 15% complete)

Required
a) Compute the equivalent units for materials using the weighted-average method
b) Compute the equivalent ub=nits for conversion costs using the weighted-average method.
c) Compute the the equivalent units for materials using FIFO
d) Compute the equivalent units for conversion costs using FIFO

2) A Plant uses the the weighted average method to account for its work-in-process inventories.
The accounting records show the below info for a particular day
Beginning WIP inventory
Direct Materials $976
Conversion costs 272
Current period costs
Direct Materials 11,440
Conversion costs 6,644

Quantity information is obtained from manufacturing records and includes the following:

Beginning inventory 600units (60%complete as material,53%complete as to conversion)
Current period units started 4,000
Ending inventory 1,200 units (40% complete as to materials,20% complete as to conversion)

Required
Compute the cost per equivalent unit for direct materials and conversion costs.
Compute the cost of goods transferred out and the ending inventory using the weighted-average method
Compute the cost per equivalent unit for direct materials and conversion costs using the FIFO method.
Compute the cost of goods transferred out and the ending inventory using the FIFO method.

3) Assume Bafana bafana corp provides you with the under metioned info for one of its departments' operation
(No new material is added in Department B)
WIP Inventory-Department B
Beginning inventory (7,500 Units,20 % complete with respect to Department B costs)
Transferred-in costs(from Department A) $29,000
Department B conversion costs 7,675
Current work (17,500 units started)
Prior department costs 70,000
Department B costs 149,075

The ending inventory has 2,500 units,which are 50% complete with respect to Department B costs and 100 % complete
for prior department costs.
Required
Prepare a production cost report using FIFO
Prepare a production cost report using weighted-average method
Is the ending inventory higher using FIFO or the weighted-average method? Why?
Would you recommend that Bafana bafana use the FIFO method or weighted-average method?Please explain why?

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1) Concordia Corp shows the following information concerning the work in process at its plant:

Beginning inventory was partially complete (materials are 100% complete:conversion costs are 60% complete)
Started this month 180,000 units
Transferred out,150,000 units
Ending inventory,100,000 (materials are 100% complete;conversion are 15% complete)

Required
a) Compute the equivalent units for materials using the weighted-average method
b) Compute the equivalent ub=nits for conversion costs using the weighted-average method.
c) Compute the the equivalent units for materials using ...

Solution Summary

The solution discusses work progress at Concordia Corp.

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