Acct344 Cost Accounting: Week 2 Homework (Kali Manufacturing and Glass Company [FIFO])

Acct344 Cost Accounting
Week 2 Homework

Problem 1:
Kali Manufacturing Inc. began the year with the following.
Units
Beginning work-in-process 20,000 20% complete
Transferred to finished goods 60,000
Ending inventory 10,000 70% complete
Materials added at the beginning of the process

Required
Calculate the equivalent units for
a. Material costs under the weighted average process cost method;
b. Conversion costs under the weighted average process cost method;
c. Material costs under the FIFO process cost method; and
d. Conversion costs under the FIFO process cost method.

Problem 2:
Glass Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for the current month are as follows.
Production Data Units
In process, beginning of month (20% converted) 2,000
Started during current month 8,000
Completed and transferred to finished goods 5,500
In process, end of month (60% converted) 2,500

Manufacturing Costs
Work in process, beginning
Materials 15,000
Conversion 6,450 21,450
Production Costs Added -
Materials 54,000
Direct labor cost 105,000
Factory overhead cost 42,840

Required
Prepare a cost of production report for current month. Use FIFO process costing.
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