Bahrain Company makes snow blowers. It has two departments that process all products Assembly and Testing The following data pertain to the Assembly department Direct materials are added at the beginning of the process and conversion costs are uniformly incurred. The degree of completion of conversion cost is as follows: At the beginning of September, work in process is 40% complete and at the end of the month work in process is 60% complete. Other data for the month include: Beginning work-in-process inventory 3,200 units 4,000 units Units started Units completed 6,400 units Ending work-in-process inventory Conversion costs for September $400,000 Direct materials cost for September $520,000 Beginning work-in-process costs Materials $308,000 Conversion $164,160

Bahrain Company makes snow blowers. It has two departments that process all products Assembly and Testing The following data pertain to the Assembly department Direct materials are added at the beginning of the process and conversion costs are uniformly incurred. The degree of completion of conversion cost is as follows: At the beginning of September, work in process is 40% complete and at the end of the month work in process is 60% complete. Other data for the month include: Beginning work-in-process inventory 3,200 units 4,000 units Units started Units completed 6,400 units Ending work-in-process inventory Conversion costs for September $400,000 Direct materials cost for September $520,000 Beginning work-in-process costs Materials $308,000 Conversion $164,160

Name: Bahrain Company makes snow blowers. It has two departments that proce
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Description: Bahrain Company makes snow blowers. It has two departments that process all products: Assembly and Testing. The following data pertain to the Assembly departmentDirect materials are added at the beginning of the process and conversion costs are unif

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...

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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.
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.
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: With respect to conversion costs. Required: 1. Prepare a physical flow schedule for July. 2. Prepare an equivalent units schedule for July using the FIFO method. 3. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
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.
Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots From the Casting Department are rolled into steel sheet. The Rolling Department received 4,000 tons from the Casting Department in October. During October, the Rolling Department completed 3,900 tons, including 200 tons of work in process on October 1. The ending work in process inventory on October 31 was 300 tons. How many tons were started and completed during October?
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.
Foamy Inc. manufactures shaving cream and uses the weighted average cost method. In November, production is 14,800 equivalent units for materials and 13,300 units for labor and overhead. During the month, materials, labor, and overhead costs were as follows: Beginning work in process for November had a cost of 11,360 for materials, 11,666 for labor, and 9,250 for overhead. Compute the following: a. Weighted average cost per unit for materials b. Weighted average cost per unit for labor c. Weighted average cost per unit for overhead d. Total unit cost for the month
Dublin Brewing Co. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during October: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 13,000 units finished and transferred to stockroom Work in process, end of period, 2,000 units one-half completed Required: Prepare a cost of production summary for October.
Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The following data are for April: Direct materials are added throughout the process. Ending inventory is 60 percent complete with respect to direct labor and overhead. Required: 1. Why would a manager want a production report? 2. Prepare a production report for the Mixing Department for April.
Akron Manufacturing Co. manufactures a cement-sealing compound called Seal-Rite. The process requires that the product pass through three departments. In Dept. 1, all materials are put into production at the beginning of the process; in Dept. 2, materials are put into production evenly throughout the process; and in Dept. 3, all materials are put into production at the end of the process. In each department, it is assumed that the labor and factory overhead are applied evenly throughout the process. At the end of January, the production reports for the month show the following: Required: 1. Prepare a cost of production summary for each department for January, using the weighted average cost method. 2. Prepare the journal entries to record the January transactions. 3. Prepare a statement of cost of goods manufactured for the month ended January 31.
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.