Reference no: EM133118071

Problem 1 - Process Costing - Tempe Manufacturing Company makes a single product that is produced on a continuous basis in one department. All materials are added at the beginning of production. The total cost per equivalent unit in process in March was $5.80, consisting of $4.20 for materials and $1.60 for conversion. During the month, 9,000 units of product were transferred to finished goods inventory; on March 31, 3,500 units were in process, 10 percent converted. The company uses weighted average costing.

Required -

(a) Determine the cost of goods transferred to finished goods inventory.

(b) Determine the cost of the ending work-in-process inventory.

(c) What was the total cost of the beginning work-in-process inventory plus the current manufacturing costs?

Problem 2 - Absorption and Variable Costing; Inventory Valuation - Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs:

Direct materials $500

Variable overhead 440

Fixed overhead 160

The 100 units of beginning inventory for March had an absorption costing value of $90,000 and a variable costing value of $76,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.

Required - Compute Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory method was used.

Problem 3 - Statement of Cost of Goods Manufactured and Income Statement - Information from the records of the Bridgeview Manufacturing Company for August 2017 follows:

Required - Prepare a statement of cost of goods manufactured and an income statement for August 2017.