10. Heaven Company adds materials at the start of production in the Forming Department. Data related to production in May 2018 are as follows: Work in Process, May 1 14,000 Units Started in May 70,000 Units Completed and Transferred Out in May 72,000 Units Normal Lost Units 4,000 Work in Process, May 31 8,000 Materials in beginning work in process inventory P68,000 Cost of materials added during month P100,000 Assuming that lost units are ignored in computing equivalent production, what is the equivalent unit of production for materials under the average method? a. 80,000 b. 84,000 c. 88,000 d. 82,000 11. Using the data in number 10, what is the cost per unit for materials? a. P2.00 b. P2.10 c. P2.20 d. P2.30

10. Heaven Company adds materials at the start of production in the Forming Department. Data related to production in May 2018 are as follows: Work in Process, May 1 14,000 Units Started in May 70,000 Units Completed and Transferred Out in May 72,000 Units Normal Lost Units 4,000 Work in Process, May 31 8,000 Materials in beginning work in process inventory P68,000 Cost of materials added during month P100,000 Assuming that lost units are ignored in computing equivalent production, what is the equivalent unit of production for materials under the average method? a. 80,000 b. 84,000 c. 88,000 d. 82,000 11. Using the data in number 10, what is the cost per unit for materials? a. P2.00 b. P2.10 c. P2.20 d. P2.30

Name: Provide a solution for number 10 and 11 10. Heaven Company adds materi
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Description: Provide a solution for number 10 and 11 10. Heaven Company adds materials at the start of production in the Forming Department.Data related to production in May 2018 are as follows:Work in Process, May 1 14,000 UnitsStarted in May 70,000 UnitsComplet

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 3BE: The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory...

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Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units. The beginning work in process inventory consisted of $5,000 in materials and $8,500 in conversion costs before $16,000 of materials and $18,500 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.
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Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
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