ACC6017H319 Campbellsville Process Costing Using Weighted Average Essay Hi , I need Answer for below questions. Part B-1: Process Costing using Weighted

ACC6017H319 Campbellsville Process Costing Using Weighted Average Essay Hi ,

I need Answer for below questions.

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Part B-1: Process Costing using Weighted Average

“I think we goofed when we hired that new assistant controller,” said Ruth Scarpino, president of Provost Industries. “Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it.”

Finishing Department costs:

Work in process inventory, April 900 units; materials 100% complete; conversion 60% complete

Costs transferred in during the month from the

$ 8,561”

preceding department, 2,400 units


Materials cost added during the month


Conversion costs incurred during the month


Total departmental costs


Finishing Department costs assigned to:

Units completed and transferred to finished goods, 2,700 units at $24.340 per unit

Work in process inventory, April 30, 600 units;

materials 0% complete; conversion 50% complete Total departmental costs assigned




“Consists of cost transferred in, $4,286; materials cost, $2,025; and conversion cost,


“He’s struggling to team our system,” replied Frank Harrop, the operations manager. “The problem is that he’s been away from process costing for a long time, and it’s coming back slowly.”

“It’s not just the format of his report that I’m concerned about. Look at that $24.340 unit cost that he’s come up with for April. Doesn’t that seem high to you?” said Ms. Scarpino.

“Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation,” replied Mr. Harrop. “I’ll get someone else to redo this report and then we can see what’s going on.”

Provost Industries manufactures a ceramic product that goes through two processing departments—Molding and Finishing. The company uses the weighted-average method in its process costing.


1-a. Calculate the equivalent units of production. 1-b. Calculate the cost per equivalent unit.

1-c. How much cost should have been assigned to the ending work in process inventory?

1-d. How much cost should have been assigned to the units completed and transferred to finished goods?

Part B-2: Break-Even Analysis

Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the president yesterday.”

’fat’s the problem?”

“The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”

“I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00 ”

Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below:




Annual sales volume




Unit selling price

$ 1.90



Variable expense per

unit$ 0.70



Total fixed expenses are $262,000 per year.

All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers.

The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories.


What is the company’s over-all break-e/en point in dollar sales?
Of the total fixed expenses of $262,000, $34,200 could be avoided if the Velcro product is dropped, $96,000 if the Metal product is dropped, and $38,800 if the Nylon product is dropped. The remaining fixed expenses of $93,000 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely.
What is the break-even point in unit sales for each product?
If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company?

Note : It should be in word document.

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