*Need help with all the red Xs * AccuBlade Castings Inc. casts blades for turbineengines. Within the Casting Department, alloy is firstmelted in a crucible, then poured into molds to producethe castings. On May 1, there were 230 pounds of alloyin process, which were 60% complete as to conversion.The Work in Process balance for these 230 pounds was$32,844, determined as follows:Direct materials (230 x $132)Conversion (230 x 60% x $18)During May, the Casting Department was charged$350,000 for 2,500 pounds of alloy and $19,840 fordirect labor. Factory overhead is applied to thedepartment at a rate of 150% of direct labor. Thedepartment transferred out 2,530 pounds of finishedcastings to the Machining Department. The May 31inventory in process was 44% complete as toconversion.a1. Prepare the May journal entry for the CastingDepartment for the materials charged to production. Ifan amount box does not require an entry, leave it blank.350,000✔$30,3602,484$32,844Work in Process-Casting Department ✔Materials-Alloy ✔FeedbackCheck My Worka1. Remember there are three different areas of inventory;Materials, Work in Process, and Finished Goods.350,000a2. Prepare the May journal entry for the CastingDepartment for the conversion costs charged toproduction. If an amount box does not require an entry,leave it blank.Work in Process-Casting Department ✔ 49,600✔Wages Payable ✔Factory Overhead ✔Feedback19,840 ✔29,760 ✔ Work in Process-Casting Department ✓Wages Payable ✔Factory Overhead ✔FeedbackFinished Goods XWork in Process-Casting Department ✔Check My Worka2. Remember that a Work in Process account accumulatesall costs (Direct Materials, Direct Labor, ManufacturingOverhead) that are added to the units in a given department.What types of costs are considered conversion costs?Feedbacka3. Prepare the May journal entry for the CastingDepartment for the completed production transferred tothe Machining Department. If an amount box does notrequire an entry, leave it blank.49,600Change inmaterialsChange inconversion402,852 XCheck My Worka3. Are these goods ready for finished goods inventory or dothese units need to be transferred to another department first?Increased19,840b. Determine the Work in Process-Casting DepartmenMay 31 balance.$29,617 XIncreased29,760c. Compute and evaluate the change in the costs perequivalent unit for direct materials and conversion fromthe previous month (April).Cost per Equivalent Unit1,990402,852 XX

*FIFO method is being followed for the calculation of equivalent units and cost per equivalent unit.…

a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department. If an amount box does not require an entry, leave it blank. Finished Goods X Work in Process-Casting Department Feedback Check My Work a3. Are these goods ready for finished goods inventory or do these units need to be transferred to another department first b. Determine the Work in Process-Casting Departmen May 31 balance. 29,617 X Change in materials 402,852 X c. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April). Cost per Equivalent Unit Change in conversion Increased 402,852 X Increased 1,990 X

a3. Prepare the May journal entry for the Casting Department for the completed production transferred to the Machining Department. If an amount box does not require an entry, leave it blank. Finished Goods X Work in Process-Casting Department Feedback Check My Work a3. Are these goods ready for finished goods inventory or do these units need to be transferred to another department first b. Determine the Work in Process-Casting Departmen May 31 balance. 29,617 X Change in materials 402,852 X c. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (April). Cost per Equivalent Unit Change in conversion Increased 402,852 X Increased 1,990 X

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 18E

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Similar questions

Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September: a. All materials are added at the beginning of the process. b. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs. c. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs. d. Started in process, 95,000 units. Required: 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method.
Larkin Company produces leather strips for western belts using three processes: cutting, design and coloring, and punching. The weighted average method is used for all three departments. The following information pertains to the Design and Coloring Department for the month of June: a. There was no beginning work in process. b. There were 400,000 units transferred in from the Cutting Department. c. Ending work in process, June 30: 50,000 strips, 80 percent complete with respect to conversion costs. d. Units completed and transferred out: 330,000 strips. The following costs were added during the month: a. Direct materials are added at the beginning of the process. b. Inspection takes place at the end of the process. All spoilage is considered normal. Required: 1. Calculate equivalent units of production for transferred-in materials, direct materials added, and conversion costs. 2. Calculate unit costs for the three categories of Requirement 1. 3. What is the total cost of units transferred out? What is the cost of ending work-in-process inventory? How is the cost of spoilage treated? 4. Assume that all spoilage is considered abnormal. Now, how is spoilage treated? Give the journal entry to account for the cost of the spoiled units. Some companies view all spoilage as abnormal. Explain why. 5. Assume that 80 percent of the units spoiled are abnormal and 20 percent are normal spoilage. Show the spoilage treatment for this scenario.
The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
Mazomanie Farm completed 20,000 units during the quarter and has 2,500 units still in process. The units are 100% complete with regard to materials and 55% complete with regard to conversion costs. What are the equivalent units for materials and conversion?
During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had 120 of raw materials and 180 of conversion costs incurred. Materials added during December were 540, and conversion costs of 1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method. The equivalent units of production used to compute conversion costs for December were: a. 110 units. b. 104 units. c. 100 units. d. 92 units.
Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $57,540 and the total conversion cost is $36,036. Using the weighted-average method, what are the unit costs if the company transferred out 17,000 units? What is the value of the inventory transferred out and the value of the ending WIP inventory?
The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
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.
Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000.