Answered: 2015 Department A Department B Units:… | bartleby

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter20: Process Cost Systems

Section: Chapter Questions

Problem 20.1APR: Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in...

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P9-6 Data for departments A & B of Grand Central Company for the month of June 2015
follows:
Department A Department B
Units:
In process, beginning
Stage of completion
Finished & transferred
Finished & on hand
In process, end.
Stage of completion
60,000
30%
70,000
20,000
10,000
80,000
20%
40,000
20,000
40%
60%
Costs:
In process, beginning
Cost added:
Materials
P96,000
P180,000
100,000
50,000
32,400
110,000
20,000
26,800
Labor
Overhead
Required: Cost of production reports for two departments.

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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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During March, 2021, Chiong Go Co.’s department equivalent unit costs were computed as follows. Materials - P1.00; Conversion costs – P3.00. Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete as to conversion cost) in process at March 31, 2012. The total costs assigned to the March 31, 2012 WIP inventory should * a. P4,800 b. P8,800 c. P7,200 d. Some other answer
The production data for Department 1 for August 2015 are as follows:Actual UnitsWIP, August 1 (1/4 done as to conversion costs) 100,000Started in August 740,000Transferred out during August 610,000Spoiled units 80,000Cost of Beginning work-in process:Materials 1,250,000Conversion Costs 150,000Current Costs:Materials 7,400,000Conversion Costs 4,710,000Unit costs:Materials ?Conversion Costs 6Materials are added at the start of the process.Conversion costs are added evenly during the process.The company uses the FIFO method of costing.Inspection occurs, when production is 100% complete.Normal spoilage is 11% of good units transferred out during August.Req: What is the cost allocated to next department, work-in-process end in Department 1, and period cost?
All costs incidental to materials procurement and handling until they are issued are charged tothe materials account by Cruz Mfg. Co. at a rate predetermined for each of the departmentsinvolved.For 19C, the estimated departmental costs are given:Purchasing department P175,000Receiving and Inspection Dept. 124,500Materials department 83,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.295,000Purchases for 19C were estimated to amount to P5, 000,000 for more or less 8,300,000units to be ordered 50 times.Actual purchases for 19C amounted to P5, 600,000 for total of 8,000,000 units in 52orders. Costs incurred by the four given departments were as follows:Purchasing department P180,000Receiving and inspectiondepartment128,000Materials department 78,000Accounting department (20% isestimated to be related toprocessing of payments formaterials.290,000Required:a. Compute for the predetermined departmental overhead rates.b. How much is the applied…
T2-6 Sury Company reported the following information for the month of April: Units Work in Process Beginning inventory, April 1 8,000 Added to production 45,000 Completed and transferred out ? Ending inventory, April 30 5,000 Sury also reported the following cost information in April: Costs Materials Conversion Work in Process Beginning inventory, April 1 $11,000 $ 17,160 Added to production 66,380 104,000 Questions I have: How do I find a.What was the cost per equivalent unit for materials? b.What was the cost per equivalent unit for conversion? c.What cost would be assigned to the units transferred out of Work in Process Inventory? d.What cost would be assigned to the ending Work in Process Inventory?
E5-3A Stage Two ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following activity cost information for its manufacturing activities: Activity Activity Cost Machine setup $60.00 per batch Movement 15.00 per batch 0.10 per pound Drilling 3.00 per hole Welding 4.00 per inch Shaping 25.00 per hour Assembly 18.00 per hour Inspection 2.00 per unit Filling an order for a batch of 50 fireplace inserts that weighed 100 pounds each required the following: * Four batch moves * Two sets of inspections * Drilling ten holes in each unit * Completing 100 inches of welds on each unit * Forty-five minutes of shaping for each unit * One hour…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…

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