Q2. Kelley paint company uses the weighted-average method to account for costsof production. Kelley manufactures base paint in two separate departments -Mixing and Packaging. The following information is for the Mixing Department forthe month of March.• A total of 40,000 units were in beginning WIP Inventory. All werecompleted and transferred out during March.• A total of 70,000 units were started during March. Of the 70,000 unitsstarted, 20,000 units were completed and transferred out to the Packagingdepartment (100% complete with respect to direct materials, direct labour,and overhead), and 50,000 units were partially completed and remained inending WIP Inventory on March 31 (90% complete for direct materials, 70%complete for direct labour, and 30% complete for overhead, which is appliedbased on machine hours).. Costs in beginning WIP Inventory totaled $229.000 ($98,000 in directmaterials + $41.000 in direct labor + $90,000 in overhead).. Costs incurred during March totaled $165,000(= 70,000 in direct materials+35.000 in dina$2O + TOOSS+MML 60 FUGGGL Dace5SOHINREF3WHp/Mk5ER0eastwestcollege.brightspace.com/d2l/le/activities/edit/TGHFC Bank-sm Calgary Mail-Linda Baa-mi... C Our own research i... Queen's University... lindabaamintah-Ya...N NettionLessons=False&retumUrl=%2fd21... BProdigy Finance Homepage - Maste...Y 19px V+ vLato (Recom9Paragraph v B I U A Ev 聞くR [~Mixing du Packaging. The following information is for the viking Department forthe month of March.. A total of 40,000 units were in beginning WIP Inventory. All werecompleted and transferred out during March.. A total of 70,000 units were started during March. Of the 70,000 unitsstarted, 20,000 units were completed and transferred out to the Packagingdepartment (100% complete with respect to direct materials, direct labour,and overhead), and 50,000 units were partially completed and remained inending WIP Inventory on March 31 (90% complete for direct materials, 70%complete for direct labour, and 30% complete for overhead, which is appliedbased on machine hours).. Costs in beginning WIP Inventory totaled $229.000 ($98,000 in directmaterials + $41.000 in direct labor+ $90,000 in overhead).. Costs incurred during March totaled $165,000(= 70,000 in direct materials +35,000 in direct labor+ 60,000 in overhead).• Use the four key steps to assign costs to units completed and transferred out and to units in ending WIP inventory for the MixiDepartment.

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Description: Q2. Kelley paint company uses the weighted-average method to account for costsof production. Kelley manufactures base paint in two separate departments -Mixing and Packaging. The following information is for the Mixing Department forthe month of Mar

Process costing system: It is used to compute the cost per unit from the production at each stage.…

Answered: - A total of 40,000 units were in…

Business

Accounting

- A total of 40,000 units were in beginning WIP Inventory. All were completed and transferred out during March.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at 500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: a. Prepare an income statement according to the absorption costing concept for the month ending February 28. b. Prepare an income statement according to the variable costing concept for for the month ending February 28. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)?
A company started a new product, and in the first month started 100,000 units. The ending work in process inventory was 20,000 units that were 100% complete with materials and 75% complete with conversion costs. There were 100,000 units to account for, and the equivalent units for materials was $6 per unit while the equivalent units for conversion was $8 per unit. What is the value of the inventory transferred out, using the weighted-average inventory method?
Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June: A total of 100,000 units were manufactured during June, of which 10,000 remain in ending inventory. Chassen uses the first-in, first-out (FIFO) inventory method, and the 10,000 units are the only finished goods inventory at June 30. Under the absorption costing concept, the value of Chassens June 30 finished goods inventory would be: a. 50,000. b. 70,000. c. 85,000. d. 145,000.
Use the following information for Multiple-Choice Questions 6-7 through 6-9: The mixing department incurred 46,000 of manufacturing costs during the month of September. The department transferred out 2,300 units and had 500 units in EWIP, 40% complete. There was no BWIP. 6-8 The cost of goods transferred out is a. 42,320. b. 46,000. c. 37,789. d. 460,000. e. None of these.
Use the following information for Multiple-Choice Questions 6-7 through 6-9: The mixing department incurred 46,000 of manufacturing costs during the month of September. The department transferred out 2,300 units and had 500 units in EWIP, 40% complete. There was no BWIP. 6-7 The unit cost for the month of September is a. 20. b. 18.40. c. 16.43. d. 200. e. 184.
Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
The packaging department began the month with 500 units that were 100% complete with regard to material and 85% complete with regard to conversion. It received 9,500 units from the processing department and ended the month with 750 units that were 100% complete with regard to materials and 30% complete with regard to conversion. With a $5 per unit cost for conversion and a $5 per unit cost for materials, what is the cost of the units transferred out and remaining in ending inventory?