Question

the townsend tractor company manufactures small garden tractors on a highly automated assembly line. its costing system uses two cost categories, direct materials and conversion costs. each tractor must pass through the assembly department and the testing department. direct materials are added at the beginning of the production process. conversion costs are allocated evenly throughout production. townsend tractor uses weighted-average costing. data for the assembly department for april 2008 are: work in process, beginning inventory: 400 units direct materials (100% complete) conversion costs (40% complete) units started during april 1,200 units work in process, ending inventory: 250 units direct materials (100% complete) conversion costs (80% complete) costs for april 2008: work in process, beginning inventory: direct materials $100,000 conversion costs $300,000 direct materials costs added during april $700,000 conversion costs added during april $1,250,000 what amount of conversion costs are assigned to the ending work-in-process account for april?

Answer 1

The amount of conversion costs assigned to the ending work-in-process inventory for April for Townsend Tractor Company, using the weighted-average costing method, is $227,942.

Step-by-step explanation:

To calculate the amount of conversion costs assigned to the ending work-in-process account for April for Townsend Tractor Company, we will use the weighted-average costing method. The calculation requires a few steps following the given data.

1. Calculate the equivalent units of production (EUP) for conversion costs considering the percent complete.
2. Calculate the total conversion costs for the month.
3. Apply the weighted-average costing method to determine the cost per equivalent unit.
4. Compute the conversion costs assigned to ending work-in-process.

Following these steps:

• Equivalent units for conversion costs for the ending inventory = 250 units * 80% = 200 equivalent units.
• Total conversion costs = Beginning inventory conversion costs + Conversion costs added during April = $300,000 + $1,250,000 = $1,550,000.
• Cost per equivalent unit for conversion costs = Total conversion costs / Total equivalent units = $1,550,000 / (400 units * 40% + 1,200 units) = $1,550,000 / 1,360 = $1,139.71 (rounded to two decimal points).
• Conversion costs for ending work-in-process = Equivalent units for conversion costs in ending inventory * Cost per equivalent unit = 200 * $1,139.71 = $227,942.

Therefore, the amount of conversion costs assigned to the ending work-in-process for April is $227,942.

Answer 2

To determine the amount of conversion costs assigned to the ending work-in-process, calculate the equivalent units of production for conversion costs, then find the cost per equivalent unit, and apply it to the ending inventory. For the given data, the amount of conversion costs assigned to the ending work-in-process for April is $269,566.

Step-by-step explanation:

The student is asking about the calculation of conversion costs assigned to the ending work-in-process account for a specific period using the weighted-average costing method in a manufacturing setting. To solve this, we need to calculate the equivalent units for conversion costs and then apply the cost per equivalent unit to the ending inventory.

Firstly, calculate the equivalent units of production (EUP) for conversion costs:
Equivalent units = (Units completed and transferred out) + (Ending work in process * Percentage completion for conversion costs).
(1,200 units started - 250 units ending work in process) + (250 units * 80% completion) = 950 units + 200 units = 1,150 EUP for conversion costs.

Next, calculate the cost per equivalent unit:
Total conversion costs = Beginning inventory conversion costs + Conversion costs added during the period.
$300,000 + $1,250,000 = $1,550,000 total conversion costs.
Cost per equivalent unit = Total conversion costs / Equivalent units.
$1,550,000 / 1,150 EUP = $1,347.83 per EUP.

Finally, calculate the conversion costs for ending work in process:
Conversion costs for ending work in process = EUP for ending work in process * Cost per equivalent unit.
200 EUP * $1,347.83 per EUP = $269,566.

Therefore, the amount of conversion costs assigned to the ending work-in-process account for April is $269,566.