Reference no: EM131795863

Question 1: Funtime Inc. makes small toys in a one-department production process.

Beginning Inventory: 15,000 toys (60% complete to labor; 75% complete as to overhead)

Started into production: plastic for 620,000 toys

Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60% complete as to overhead)

a) Compute the EUP for direct material; direct labor; and overhead using weighted average process costing.

b) Compute the EUP for direct material; direct labor & overhead using FIFO process cost.

c) Reconcile the calculations in parts (a) and (b)

Question 2: lilliputian inc. produces dog food. All direct material is entered at the beginning of the process. some shrinkage occurs during the production process, but management considers any shrinkage of less than 8% to be normal. October 2010 data are as follows:

beginning wip inventory (45% complete as to conversion) 36,000 pounds

started during the month 120,000 pounds

transferred to fg inventory 126,000 pounds

ending wip inventory (15% complete as to conversion) 21,600 pounds

loss ? pounds

The following costs are associated with October production:

beginning wip inventory:

material 14,000

conversion 10,800 24,800

current period:

material 39,060

conversion 33,912 72,972

total cost to account for 97,772

Prepare an October 2010 cost of production report for lillputian inc. using FIFO process costing.

Question 3: Ro-Day-O Inc. manufactures belt buckles in a single-step production process. The following information is available for June 2010:

                                                 Whole Units       Cost of Material      Cost of Labor

Beginning WIP                            200,000                 $1,200,000           $1,728,000

Units started during period           1,000,000             7,800,000              9,612,000

Units in ending inventory             300,000

Beginning inventory units were 100 percent complete as to material and 80 percent complete as to labor. The ending inventory units were 100 percent complete as to material and 50 percent complete as to labor. Overhead is applied to production at the rate of 60 percent of direct labor cost.

a. Prepare a schedule to compute equivalent units of production by cost component assuming the weighted average method.

b. Determine the unit production costs for material and conversion.

c. Calculate the costs assigned to completed units and ending inventory for August 2010.