Chapter 10 Process CostingEllery Company instituted a new process in October, 2016. During October 10,000units were started in Department A. Of the units started, 1,000 were lost by shrinkagein the process, 7,000 were transferred to Dept. B, and 2,000 remained in work inprocess at October 31. The work in process at Oct. 31 was 100% complete as tomaterials and 50% complete as to conversion cost. Materials costs of P27,000 andconversion costs of P 40,000 were charged to Department A in October.13. What were the total costs transferred to Dept. B7a. P 53,900b. P 56,000c. P61,600d. P 62,00014. What were the costs of the units in process, October 31?a. P10,400b. P11,000e. P15,000d. P18,100

Cost accounting is widely used by the management and the cost accountants to determine the cost per…

Chapter Ellery Company instituted a new process in October, 2016. During October 10,000 units were started in Department A. Of the units started, 1,000 were lost by shrinkage in the process, 7,000 were transferred to Dept. B, and 2,000 remained in work in process at October 31. The work in process at Oct. 31 was 100% complete as to materials and S0% complete as to conversion cost. Materials costs of P27,000 and conversion costs of P 40,000 were charged to Department A in October. 13. What were the total costs transferred to Dept. B7 a P 53,900 b. P 56,000 e P61,600 d. P62,000 14. What were the costs of the units in process, October 317 a P10,400 b. P11,000 e. P15,000 4. P18,100

Chapter Ellery Company instituted a new process in October, 2016. During October 10,000 units were started in Department A. Of the units started, 1,000 were lost by shrinkage in the process, 7,000 were transferred to Dept. B, and 2,000 remained in work in process at October 31. The work in process at Oct. 31 was 100% complete as to materials and S0% complete as to conversion cost. Materials costs of P27,000 and conversion costs of P 40,000 were charged to Department A in October. 13. What were the total costs transferred to Dept. B7 a P 53,900 b. P 56,000 e P61,600 d. P62,000 14. What were the costs of the units in process, October 317 a P10,400 b. P11,000 e. P15,000 4. P18,100

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 16E: Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the...

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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.
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: 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 moves 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 move 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?
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. a. Determine the unit cost for the month in Finishing. b. Determine the unit cost of the products transferred to finished goods.
Argo Manufacturing Co. had 500 units, three-fifths completed, in process at the beginning of the month. During the month, 2,000 units were started in process and finished. There was no work in process at the end of the month. Unit cost of production for the month was 1.20. Costs for materials, labor, and factory overhead incurred in the current month totaled 2,655. Calculate the unit cost for the prior month. (Hint: You must first determine what the dollar balance in work in process must have been at the beginning of the month, as well as the equivalent production of the units in beginning inventory.)
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.
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.
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?
Q9. Robert Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 65,000 units were completed in the Assembly Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A 65,000 units B 70,500 units C 64,100 units D 55,000 units
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!)