Physical Direct Conversio

Flow of Production Units Materials n Cost

Work in process, beginning 8,700
Started during current period 34,500
To account for 43,200
Completed and transferred out during current period 32,000 32,000 32,000
Work in process, ending 11,200 11,200 7,840
Accounted for 43,200
Equivalent units of work done to date 43,200 39,840

Total
Direct Conversio
Productio
Materials n Cost
n Cost
Work in process, beginning 61,500 43,200 104,700
Costs added in current period 301,380 498,624 800,004
Total costs to account for 362,880 541,824 904,704

Costs incurred to date 362,880 541,824

Equivalent units of work done to date 43,200 39,840
Cost per equivalent unit of work done to date 8.4 13.6

Assignment of costs
Completed and transferred out 268,800 435,200 704,000
Work in process, ending 94,080 106,624 200,704
Total costs accounted for 362,880 541,824 904,704
 Physical Units
Flow of Production
Work in process, beginning 8,700
Started during current period 34,500
To account for 43,200
Completed and transferred out during current period
From beginning work in process 8,700
Started and completed 23,300
Work in process, ending 11,200
Accounted for 43,200
Equivalent units of work done to date

Direct Materials

Work in process, beginning 61,500

Costs added in current period 301,380
Total costs to account for 362,880

Costs incurred to date 301,380

Equivalent units of work done to date 34,500
Cost per equivalent unit of work done to date 8.74

Assignment of costs
Completed and transferred out
Work in process, beginning 61,500
beginning work in process in current period -
Started and completed 203,541
Work in process, ending 97,839
Total costs accounted for 362,880

2 Using the weighted average method will result in a greater degree of cost smoothing because the
inventory is mixed together with costs added each period. This will produce a more consistent cost per e
FIFO method.
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaa
In the case of Tomlinson Corporation, note that the direct material cost per
from $7.07 in the prior period ($61,500 ÷ 8,700 units) to $8.74 in July, while the conversion cost
decreased from $19.86 ($43,200 ÷ 2,175 equivalent units in opening work-in-process) to $13.24 in July. U
average method, these costs and equivalent units are combined into consistent, blended rates of $8
direct materials and conversion costs, respectively.
 Direct Materials Conversion Cost

- 6,525
23,300 23,300
11,200 7,840

34,500 37,665

Conversion Cost Total Production

Cost

43,200 104,700
498,624 800,004
541,824 904,704

498,624
37,665
13.24

43,200 104,700
86,381 86,381
308,455 511,995
103,789 201,628
541,824 904,704

of cost smoothing because the cost of beginning

uce a more consistent cost per equivalent unit than the

aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

that the direct material cost per equivalent unit went

July, while the conversion cost per equivalent unit
rk-in-process) to $13.24 in July. Under the weighted-
consistent, blended rates of $8.40 and $13.60 for
 Physical Transferred
Flow of Production Units In Costs
Work in process, beginning 60
Transferred in during current period 100
To account for 160
Completed and transferred out during current period 120 120
Work in process, ending 40 40
Accounted for 160
Equivalent units of work done to date 160

Transferred
Direct
In
Materials
Costs
Work in process, beginning 60,000 -
Costs added in current period 117,000 27,000
Total costs to account for 177,000 27,000

Costs incurred to date 177,000 27,000

Equivalent units of work done to date 160 120
Cost per equivalent unit of work done to date 1,106.25 225

Assignment of costs
Completed and transferred out 132,750 27,000
Work in process, ending 44,250 -
Total costs accounted for 177,000 27,000
 Direct Conversion
Materials Cost

120 120
0 30

120 150

Total
Conversion
Production
Cost
Cost
24,000 84,000
62,400 206,400
86,400 290,400

86,400
150
576

69,120 228,870
17,280 61,530
86,400 290,400
 Physical Units
Flow of Production
Work in process, beginning 60
Transferred in during current period 100
To account for 160
Completed and transferred out during current period 120
From beginning work in process 60
Started and completed 60
Work in process, ending 40
Accounted for 160
Equivalent units of work done to date

Transferred In

Costs
Work in process, beginning 45,000
Costs added in current period 114,000
Total costs to account for 159,000

Costs incurred to date 114,000

Equivalent units of work done to date 100
Cost per equivalent unit of work done to date 1,140

Assignment of costs
Completed and transferred out
Work in process, beginning 45,000
beginning work in process in current period -
Started and completed 68,400
Work in process, ending 45,600
Total costs accounted for 159,000
Transferred In Direct Conversion
Costs Materials Cost

0 60 30
60 60 60
40 0 30

100 120 120

Total
Direct Conversion
Production
Materials Cost
Cost
- 24,000 69,000
27,000 62,400 203,400
27,000 86,400 272,400

27,000 62,400
120 120
225 520

- 24,000 69,000
13,500 15,600 29,100
13,500 31,200 113,100
- 15,600 61,200
27,000 86,400 272,400
 Physical Units
Flow of Production
Work in process, beginning 60
Started during current period 510
To account for 570
Completed and transferred out during current period 450
Work in process, ending 120
Accounted for 570
Equivalent units of work done to date

Direct
Materials

Work in process, beginning 1,530

Costs added in current period 17,850
Total costs to account for 19,380

Costs incurred to date 19,380

Equivalent units of work done to date 570
Cost per equivalent unit of work done to date 34.0

Assignment of costs
Completed and transferred out 15,300
Work in process, ending 4,080
Total costs accounted for 19,380
 Direct Conversion
Materials Cost

450 450
120 18

570 468

Total
Conversion
Production
Cost
Cost
156 1,686
11,544 29,394
11,700 31,080

11,700
468
25.0

11,250 26,550
450 4,530
11,700 31,080
 Direct Materials
Conversion Cost

Cost of units completed and transferred out

Work in process, ending
Total costs accounted for

Flow of Production
Work in process, beginning
Started during current period
To account for
Completed and transferred out during current period
From beginning work in process
Started and completed
Work in process, ending
Accounted for
Equivalent units of work done to date

Work in process, beginning

Costs added in current period
Total costs to account for

Costs incurred to date

Equivalent units of work done to date
Cost per equivalent unit of work done to date

Assignment of costs
Completed and transferred out
Work in process, beginning
beginning work in process in current period
Started and completed
Work in process, ending
Total costs accounted for
Beginning Inventory Work Done in Current
Period
25.5 35
6.5 26

Weighted Average FIFO

26,550 26,412
4,530 4,668
31,080 31,080

Physical Units Direct Materials Conversion Cost

60
510
570

60 - 36
390 390 390
120 120 18
570
510 444

Direct Materials Conversion Cost Total Production Cost

1,530 156 1,686

17,850 11,544 29,394
19,380 11,700 31,080

17,850 11,544
510 444
35 26

1,530 156 1,686

- 936 936
13,650 10,140 23,790
 4,200 468 4,668
19,380 11,700 31,080