Brooks Inc. uses process costing. The costs for Department 2 for April were:

Cost from preceding department
$20,000
Cost added by department:
Materials
$21,816
Labor
7,776
Factory overhead (FOH)
4,104
33,696
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The following information was obtained from the department's quantity schedule:
Units received
5,000
Units transferred out
4,000
Units still in process
1,000
The degree of completion of the work in process as to costs originating in department 2 was: 50% of units were 40% complete; 20% were 30% complete; and the balance were 20% complete. Required: The cost of goods completed and transferred out from Department 2 for April. Determine cost of WIP ending in department 2.

Brooks Inc. uses process costing. The costs for Department 2 for April were:

Cost from preceding department

$20,000
Cost added by department:

Materials
$21,816

Labor
7,776

Factory overhead (FOH)
4,104
33,696

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The following information was obtained from the department's quantity schedule:

Units received
5,000

Units transferred out
4,000

Units still in process
1,000

The degree of completion of the work in process as to costs originating in department 2 was: 50% of units were 40% complete; 20% were 30% complete; and the balance were 20% complete.
Required: The cost of production report for Department 2 for April.

Well, that's quite a mouthful! Let me put on my accounting clown shoes and break it down for you.

First, let's calculate the cost of goods completed and transferred out from Department 2 for April. We know that 4,000 units were transferred out, so we need to calculate the cost per unit.

The total cost added by the department is $33,696, and we have 5,000 units (including the units in process). So, the cost per unit is $33,696/5,000 = $6.74.

Now, we can multiply the cost per unit by the number of units transferred out to find the cost of goods completed and transferred out.

$6.74 x 4,000 = $26,960.

So, the cost of goods completed and transferred out from Department 2 for April is $26,960.

Next, let's determine the cost of work-in-process (WIP) ending in Department 2. We know that there are 1,000 units still in process, and we are given the degree of completion for each group of units.

For the 50% of units that are 40% complete, the equivalent units of production would be 0.50 x 4,000 x 0.40 = 800 units.

For the 20% that are 30% complete, the equivalent units of production would be 0.20 x 4,000 x 0.30 = 240 units.

Finally, for the remaining units that are 20% complete, the equivalent units of production would be 0.30 x 4,000 x 0.20 = 240 units.

Adding up all the equivalent units, we get 800 + 240 + 240 = 1,280 units.

Now, we can calculate the cost of WIP ending in Department 2 by multiplying the cost per unit ($6.74) by the equivalent units of production (1,280 units).

$6.74 x 1,280 = $8,627.20.

So, the cost of WIP ending in Department 2 for April is $8,627.20.

I hope that puts a smile on your face, even if accounting can sometimes be a bit of a circus!

To determine the cost of goods completed and transferred out from Department 2 for April, we need to calculate the cost per equivalent unit for materials, labor, and factory overhead (FOH) in Department 2.

First, let's calculate the equivalent units of production for each cost category:

Materials:
Total units received = 5,000
Completed units transferred out = 4,000
Units still in process = 1,000

Equivalent units of production for materials = Completed units transferred out + (Units still in process × Degree of completion)
Equivalent units of production for materials = 4,000 + (1,000 × 40%)
Equivalent units of production for materials = 4,400

Labor and FOH:
Total units received = 5,000
Completed units transferred out = 4,000
Units still in process = 1,000

Equivalent units of production for labor and FOH = Completed units transferred out + (Units still in process × Degree of completion)
Equivalent units of production for labor and FOH = 4,000 + (1,000 × (40% + 30% + 20%))
Equivalent units of production for labor and FOH = 4,000 + (1,000 × 90%)
Equivalent units of production for labor and FOH = 4,900

Next, let's calculate the cost per equivalent unit for each cost category:

Cost per equivalent unit = Cost added by department ÷ Equivalent units of production

Cost per equivalent unit for materials = $21,816 ÷ 4,400
Cost per equivalent unit for materials ≈ $4.95

Cost per equivalent unit for labor and FOH = $33,696 ÷ 4,900
Cost per equivalent unit for labor and FOH ≈ $6.88

Now, let's calculate the cost of goods completed and transferred out from Department 2:

Cost of materials transferred out = Cost per equivalent unit for materials × Equivalent units of production for materials transferred out
Cost of materials transferred out = $4.95 × 4,000
Cost of materials transferred out = $19,800

Cost of labor and FOH transferred out = Cost per equivalent unit for labor and FOH × Equivalent units of production for labor and FOH transferred out
Cost of labor and FOH transferred out = $6.88 × 4,000
Cost of labor and FOH transferred out = $27,520

Total cost of goods completed and transferred out from Department 2 = Cost of materials transferred out + Cost of labor and FOH transferred out
Total cost of goods completed and transferred out from Department 2 = $19,800 + $27,520
Total cost of goods completed and transferred out from Department 2 = $47,320

Therefore, the cost of goods completed and transferred out from Department 2 for April was $47,320.

To determine the cost of WIP ending in department 2, we need to calculate the cost of the units still in process.

Cost of WIP ending in department 2 = Cost per equivalent unit for materials × Equivalent units of production for materials in process + Cost per equivalent unit for labor and FOH × Equivalent units of production for labor and FOH in process
Cost of WIP ending in department 2 = $4.95 × (1,000 × 40%) + $6.88 × (1,000 × (30% + 20%))
Cost of WIP ending in department 2 ≈ $1,980 + $4,128
Cost of WIP ending in department 2 ≈ $6,108

Therefore, the cost of WIP ending in department 2 for April was approximately $6,108.

To calculate the cost of goods completed and transferred out from Department 2 for April, we need to follow these steps:

Step 1: Calculate the equivalent units of production for materials, labor, and factory overhead.

To calculate the equivalent units of production, multiply the number of units by the degree of completion for each category. Then, add up the equivalent units for each category to get the total equivalent units of production.

Equivalent units for materials:
40% * 4,000 units = 1,600 units

Equivalent units for labor:
30% * 1,000 units = 300 units

Equivalent units for factory overhead:
20% * 1,000 units = 200 units

Total equivalent units of production:
1,600 units (materials) + 300 units (labor) + 200 units (factory overhead) = 2,100 units

Step 2: Calculate the cost per equivalent unit for materials, labor, and factory overhead.

To calculate the cost per equivalent unit, divide the total cost of each category by the total equivalent units of production.

Cost per equivalent unit for materials:
$21,816 / 2,100 units = $10.39 per unit

Cost per equivalent unit for labor:
$7,776 / 2,100 units = $3.70 per unit

Cost per equivalent unit for factory overhead:
$4,104 / 2,100 units = $1.96 per unit

Step 3: Calculate the cost of goods completed and transferred out.

To calculate the cost of goods completed and transferred out, multiply the number of units transferred out by the respective cost per equivalent unit for each category, and then add up the costs for all categories.

Cost of materials transferred out:
4,000 units * $10.39 per unit = $41,560

Cost of labor transferred out:
4,000 units * $3.70 per unit = $14,800

Cost of factory overhead transferred out:
4,000 units * $1.96 per unit = $7,840

Total cost of goods completed and transferred out:
$41,560 (materials) + $14,800 (labor) + $7,840 (factory overhead) = $64,200

Therefore, the cost of goods completed and transferred out from Department 2 for April is $64,200.

To determine the cost of work in process (WIP) ending in Department 2, we need to multiply the remaining units (1,000 units) by the respective cost per equivalent unit for each category and add up the costs for all categories.

Cost of materials in WIP:
1,000 units * $10.39 per unit = $10,390

Cost of labor in WIP:
1,000 units * $3.70 per unit = $3,700

Cost of factory overhead in WIP:
1,000 units * $1.96 per unit = $1,960

Total cost of WIP ending in Department 2:
$10,390 (materials) + $3,700 (labor) + $1,960 (factory overhead) = $16,050

Therefore, the cost of WIP ending in Department 2 for April is $16,050.