Managerial and Cost Accounting: P4-28 Moravia Company processes and packages cream cheese

Managerial and Cost Accounting


Moravia Company processes and packages cream cheese. The following data have been compiled for the month of April. Conversion activity occurs uniformly throughout the production process. Work in process, April 1—10,000 units:
Direct material: 100% complete, cost of $22,000
Conversion: 20% complete, cost of $4,500
Balance in work in process, April 1 $26,500

Units started during April 100,000

Units completed during April and transferred out to finished-goods inventory 80,000

Work in process, April 30:
Direct material: 100% complete
Conversion: 33 1 3 % complete
Costs incurred during April:
Direct material 198,000
Conversion costs:
Direct labor 52,800
Applied manufacturing overhead 105,600
Total conversion costs 158,400

Prepare schedules to accomplish each of the following process-costing steps for the month of April. Use the weighted-average method of process costing.
1. Analysis of physical flow of units.
2. Calculation of equivalent units.
3. Computation of unit costs.
4. Analysis of total costs.
5. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: the April 1 work-in-process costs were $27,000 for direct material and $5,000 for conversion.
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