Complete five-step procedure in second department Alpha Semiconductors experienced the following activity in its Phot

step process costing pròceauo U E5-36A Complete five-step procedure in second department Alpha Semiconductors experienced the following activity in its Photolithography Depart- ment during December. Materials are added at the beginning of the photolithography process Units: 6,000 units work in process, December 1 (80% of the way through the process) Transferred in from the Polishing and Cutting Department during ...29,000 units ? units Completed during December. Work in process, December 31 (70% of the way through the process) 7,000 units Costs: Work in process, December 1 (transferred-in costs, $21,600; direct materials costs, $20,350, and conversion costs, $27,690) Transferred in from the Polishing and Cutting Department during $69,640 Direct materials added during December. Conversion costs added during December 97,400 63,650 90,750 Requirements 1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs. each cost category. and (b) units in December 31 Work in Process Inventory. 2. Summarize total costs to account for and compute the cost per equivalent unit for 3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory

Complete five-step procedure in second department Alpha Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process. Requirements Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs. Summarize total costs to account for and compute the cost per equivalent unit for each cost category. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and units in December 31 Work in Process Inventory.

Expert Answer

 

Solution:

1)
BWIP 6,000
Started 29,000
Units to account for 35,000
TIC DM CC
Completed 28,000 28,000 28,000 28,000
EWIP 70% 7,000 7000 7000 4900
Units to account for 35,000 35,000 35,000 32,900
2)
Unit costs DM CC CC Total
BWIP $21,600 $20,350 $27,690 $69,640
Incurred $97,400 63,650 90,750 $251,800
$119,000 $84,000 $118,440 $321,440
$3.40 $2.40 $3.60 $9.40
3) Valuation
Completed $95,200.00 $67,200.00 $100,800.00 $263,200.00
EWIP $23,800.00 $16,800.00 $17,640.00 $58,240.00
Total $119,000 $84,000 $118,440 $321,440
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