13View Policies-/1Cutrent Attempt in ProgressMaterials costs of $1330000 and conversion costs of $1539000 were charged to aprocessing department in the month of September. Materials are added at thebeginning of the process, while conversion costs are incurred uniformly throughoutthe process. There were no units in beginning work in process, 19000 units werestarted into production in September, and there were 4000 units in ending work inprocess that were 30% complete at the end of September.What was the total amount of manufacturing costs assigned to those units thatwere completed and transferred out of the process in September?O $2673000.O$2265000.o$3135000.o $2475000.

Material cost per unit is ascertained by dividing the total material cost by the total no. of units.

Answered: 13 View Policies -/1 Cutrent Attempt in…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 4P

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Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?
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.
AAA Appliances Inc. has two production departments. The nature of the process is such that no units remain in process in Finishing at the end of the period. At the beginning of the period, 10,000 units with a cost of 30,000 were transferred from Assembly to Finishing. Finishing incurred costs of 8,800 for materials, 7,200 for labor, and 8,800 for factory overhead, and finished 10,000 units during the month. Using the data in E5-9, prepare a statement of cost of goods manufactured for the month ended January 31, 2016, assuming that no further work was done in Assembly during January.
Current Attempt in Progress Materials costs of $1080000 and conversion costs of $1308000 were charged to a processing department in the month of September. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. There were no units in beginning work in process, 180000 units were started into production in September, and there were 8000 units in ending work in process that were 30% complete at the end of September.What was the total amount of manufacturing costs assigned to those units that were completed and transferred out of the process in September? $2322000. $2388000. $2430000. $1032000.
Q8 Read the following Case and write appropriate answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads. i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12. ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680 iiI) What are the equivalent units of production as to material and labor & overheads in August? Material…
sub-part 4 for question Silver Company manufactures kites and has the followinginformation available for the month of April:Work in process, April 1(100% complete for materials, 40% for conversion) 58,000 unitsDirect materials $ 86,000Conversion cost $ 116,000Number of units started 164,000 unitsApril costsDirect materials $ 232,000Conversion cost $ 342,000Work in process, April 30(100% complete for materials, 20% for conversion) 83,000 units!Required:Using the FIFO method, complete each of the following steps:1. Reconcile the number of physical units worked on during the period.2. Calculate the number of equivalent units.3. Calculate the cost per equivalent unit.4. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below.Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 dto the nearest whole dollar amount.)Required 1 Required 2 Required 3 Required 4Current Period CostsPrior…
Problem 7. Hua Corp. manufactures hats. All material is placed in process at the beginning of the period in Department A and the process and the conversion costs are added evenly throughout the process. Upon completion the goods are immediately transferred to Department B. Department A -Month of April 20xx. Status: -Work in process 3/31/xx conversion Units completed at a cost of $300,000 20,000 ($250,000 material and $50,000 conversion) -Units started during April 50,000 -Units completed during April 30,000 -Work in process April 30th were 50% 40,000 Completed for conversion -Direct material cost added during April $450,000 -Conversion cost added during April $100,000 Required: Prepare the 5 step production cost report
PROBLEM 23: Cost of Production Report (Continuous) RMG Corporation has the following information for the current month: Units started units Beginning Work in Process: (65% to be done) Total spoilage Spoilage within tolerance level Ending Work in Process: (20% incomplete) Transferred out 175,000 35,000 14,875 6,125 25,375 units units units units ? units Beginning Work in Process Costs: Material P46,250 60,675 Conversion Current Costs: P170,625 265,335 Material Conversion All materials are added at the start of the production process. RMG Corporation inspects goods at 100 percent completion as to conversion. Using the method that does not commingle the beginning and current period production activity Required: (Use five decimal places to compute for unit cost) a. What are equivalent units of production for conversion cost? b. Total costs of transferred out units c. The amount of work in-process, end
Items 3 – 6 Cena Company employs FIFO process costing system concerning its only product which undergoes production in assembly department and finishing department. The following data for the year ended December 31, 2020 are provided:ASSEMBLY DEPARTMENTUnits CostJanuary 1, 2020 100,000 units – 40% completed as to conversion costDM – P3MDL – P5MFOH – P2MDecember 31, 2020 150,000 units – 80% completed as to conversion costs?Units started during the year 400,000 unitsDM cost added during 2020 – P12MDL cost added during 2020 – P15MFOH cost added during 2020 – P13MFINISHING DEPARTMENTJanuary 1, 2020 50,000 units – 70% incomplete as to conversion costTransferred In – P10MDM – P6MDL – P1MFOH – P3MDecember 31, 2020 30,000 units – 10% incomplete as to conversion costs?Units started during the year ?DM cost added during 2020 – P30MDL cost added during 2020 – P40MFOH cost added during 2020 – P10MAdditional Information:• It is the company policy to apply direct labor and factory overhead uniformly…
PROBLEM: The following data was taken from the records of the Dallylaang Manufacturing Company for the month of June: WIP, beginning – 7,500 units, ¼ complete, P10,400; WIP, end – 4,500 units, 2/5 complete; Placed in process – 75,000 units; Transferred out – 74,000 units. During the month, the company has used P198,708.75 worth of materials in production and spent P233,775 for conversion costs. REQUIREMENT: Using the FIFO method, compute for the adjustment for lost units if the normal loss occurred at the end of processing. (SOLUTIONS MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WOULD BE GREAT. ACCOUNT TITLES ON THE LEFT, AMOUNTS ON THE RIGHT. USE TABLE IF NECESSARY. AVOID PARENTHETICAL SOLUTIONS. THANKS, A LOT!)
QUESTION # 4Elmo has the following information for the month of October, its first month of operations Work in Process October 1 0 Units completed & transferred out in October 120,000 Work in process October 30 32,000 100% completed for materials 80% completed for conversion costs Costs added in October Materials $145,900 Direct Labor $96,000 Overhead $108,000 what is meant by the term equivalent full units
16. Accounting Apparel completed 3,600 expensive bags during the 1st quarter of the current year. The following costs per unit are presented below:Direct materials P200Direct labor P180Factory overhead, including P10 allowance for spoilage P180Final inspection revealed that 600 bags were spoiled which were sold as export overrun at an amount equal to 40% of production costs. The good units were delivered and billed to the customer at 20% gross profit.If spoilage is due to customer’s intervention, how much is the total gross profit on the order?

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