Cost Accounting Answer a, b, and c and provide solution. Use FIFO METHODHebert Industries uses a weighted average process costing system. Management has specified that thenormal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw material isadded at the start of the production process. Spoilage is determined upon inspection at the end of theproduction process. March processing information follows.Beginning WIP Inventory (30% complete as to conversion)Started during MarchCompleted during MarchEnding WIP Inventory (20% complete as to conversion)20,000 units120,000 units116,400 units16,000 unitsa. How many total units are there to account for?b. How many units were spoiled during processing? Of the spoiled units, how manyshould be treated as a normal loss? As an abnormal loss?c. What are the equivalent units of production for direct material? For conversion?|I

Requirement:-a Basic information:- The company uses weighted average costing system the loss from…

Answered: Cost Accounting Answer a, b, and c…

Business

Accounting

Cost Accounting Answer a, b, and c and provide solution.

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 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...

See similar textbooks

Related questions

Q: REQUIRED Use the information provided below to prepare the Cash Flow Statement for the year ended 30…

A: Introduction The word "depreciation" is a financial technique used to spread out the expense of a…

Q: The following credit sales are budgeted by Sheffield Corp.: January $280000 February 390000 March…

A: For the month of April, Budgeted Cash receipts will be: Month % Amount $370,000 70 $259,000…

Q: Son Toco Ltd has sought your assistance with recording some transactions it undertook in the…

A: Journal Entries are very important part and backbone of accounting system.They are very essential to…

Q: Camping World Ltd sells tents and camping equipment on credit. The accounting records at 30 June…

A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…

Q: An employer is allowed to use Form 944 when: (a) Their annual payroll tax liability is $1,500 or…

A: An employer is allowed to use Form 944 when: The employer is a small business. The employer owes…

Q: Nevil, Symon and Symone started a business investing $60,000, $67,500, and $78,000 respectively.…

A: Lets understand the basics Partnership is an agreement between two or more person who works togather…

Q: Imagine Corporation prepares an aging schedule for its accounts receivable at the end of each month…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a…

Q: Majestic Corporation manufactures wheelbarrows and uses budgeted machine hours to allocate variable…

A: The unit cost is calculated as total cost divided by number of units produced. The overhead is…

Q: What is the incremental effect on profits if the sour cream product line is dropped? Should Keith…

A: Introduction:- Incremental analysis plays vital role for the examination of alternative choices…

Q: The Pima and Southern Railroad (PSRR) is a small railroad operating in rural Arizona. It exists by…

A: Memorandum means an informal record which helps in assisting various parties to memorize specific…

Q: 3,875 600 800 4,600 4,450 Total costs to account for Determine the company's cost per equivalent…

A: The question deals with process costing. Under process costing, statement of equivalent production…

Q: At December 31, 2020, Sunland Company reported the following as plant assets. Land Buildings Less:…

Q: Magtatagumpay Company inaugurated a promotional campaign on January 2, 2029 to promote the…

A: Promotional Campaigns are conducted in order to increase sales. By issuing a coupon for premium with…

Q: Which of the following does NOT apply to an LLC?

A: Any limited liability company (LLC) is a type of corporate structure that shields its owners from…

Q: Paola Farms, Inc. produces a crop of chickens at a total cost of $66,000. The production generates…

A: To answer this question two scenarios has to be considered.First when chicken is sold to a…

Q: Which of the following taxpayers may report the sale of their property as an installment sale?…

A: An arrangement in which someone sells something and receives a portion of the cost immediately,…

Q: Explain the conclusions concerning Jensen Limited that can be drawn from the dividend payout ratios…

A: Dividend payout ratio is the rate of profits distributed by the company as dividend among the…

Q: [The following information applies to the questions displayed below.] FreshPak Corporation…

A: The production overhead budget includes all expenses that a manufacturing company or department will…

Q: On January 1, 2020, Ehrlich Corporation had the following stockholders’ equity accounts. Common…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: 1. Summer Company has annual fixed costs of P90,000. This year, it recorded profit of P30,000 which…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Introduction:- As per vertical statement analysis, Income statement shows each item percentage in…

Q: Binders-For-School Ltd is in the process of determining whether to purchase a high-capacity machine…

A: Fixed costs are costs that remains constant and does not change with the number of units sold.…

Q: What are their total product costs? A) $143,137.50 B) $151,500.00 C) $209,737.50 D) $320,737.50

A: Total product cost will be the cost which is directly related to that cost. All the period cost or…

Q: es Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5.…

A: The liquidation of the partnership means the closing of the partnership. In this liquidation…

Q: Exercise 10-14 Ordinary repairs, extraordinary repairs, and betterments LO C3

A: A fixed asset is required to be depreciated over a period of time for its uses. The depreciation…

Q: A large St Louis feadmill Robert Orwig April, 1,450 May, 1,500, and June, 1.500. Processing,…

A: Aggregate planning using transportation method: Aggregate planning is an analytical tool for making…

Q: The manufacturing costs of Kellam Industries for the first three months of the year follow: Total…

A: Variable cost is a expense that changes in proportion to how much a company produces or sells. Fixed…

Q: St. Kilda Enterprises produces parts for the electronics industry. The production manager and cost…

A: The cost of production may include a wide range of expenditures, including labor, the purchase of…

Q: ndretti Company has a single product called a Dak. The company normally produces and sells 86,000…

A: Solution: Contribution margin per unit is computed as selling price per unit less variable cost per…

Q: Inventory this period P Inventory this period ventory this period IP Inventory ventory mit for of…

A: The question is related to process costing. The method used in the given question is FIFO method(…

Q: Discuss the main investment decision techniques and why government decisions are not only based on…

A: ANSWER:- There are four main investment decision techniques: 1. Net Present Value (NPV) 2. Internal…

Q: Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the…

A: Taxable income is the base income upon which tax is levied. It includes some or all items of income…

Q: is the cafeteria’s food cost percentage for July?

A: Food cost percentage is the food cost divided by sales in July.

Q: 2. Complete the below table to calculate income statement data in common-size percents. (Round to 2…

A: The income statement is the most important part of the financial statement because this statement…

Q: 10. The Augusta Health Company purchased land, buildings and equipment for $2,400,000. The land has…

A: The lump-sum amount was paid for land, buildings and equipment. The ratio of individual appraised…

Q: Share-Based Compensation (in part) Share-based compensation cost for RSUS is measured based on the…

A: Restricted Stock Units Stock ownership grants from employers can be made with compensation. The…

Q: Deacon Company is a merchandising company that is preparing a budget for the three-month period…

A: Budgeted balance sheet are projections of the balance sheet for subsequent budget periods. All of…

Q: Direct manufacturing labor $228,000 Variable manufacturing overhead 120,000 Direct materials 180,000…

A: Ending finished goods inventory under variable costing includes direct labor, materials and variable…

Q: 10. The Augusta Health Company purchased land, buildings and equipment for $2,400,000. The land has…

A: INTRODUCTION: A debit is an accounting entry that results in a drop in liabilities or a rise in…

Q: Explain the differences and implications between the ‘allowance method’ and the ‘direct write-off…

A: Under allowance method, the management of the entity decides a particular rate of the Accounts…

Q: Determine the objectives of the test. You are auditing both quantities and pricing of the final…

A: Proper auditing ensures that the financial statements of any venture are in accordance with the set…

Q: On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: What three types of authorizations are commonly used as internal controls for sales? For each…

A: Sales in business is a whole process that starts with purchasing products and ends with payment in…

Q: The Fast &Furious Car Rentals starts business on January 1, 2014. At December 31, 2014, the total…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: 7.A company recently purchased a building that it plans to renovate to get ready for use in its…

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: Assume that you contribute $160 per month to a retirement plan for 25 years. Then you are able to…

A: It has been provided: Required: Future value of multiple annuities?

Q: Case X: Case Y: Case Z: Compute cash received from customers Sales Case X: Case Y: Case Z: Accounts…

A: The collecting of money (cash) from your clients is what is referred to as cash receipts. The cash…

Q: Susan is the controller for Simply Devine Inc., a company that produces ice cream and specializes in…

A: Activity based cost per unit = Total overhead cost incurred / Number of units

Q: Please answer questions 1 through 3. Please make the answers very clear and refer to the images…

A: A cost sheet refers to a statement that is showing the components that are involved in the business…

Q: PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,900 Cost…

A: INTRODUCTION: The statement of cash flows can be used to identify trends in business performance…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Cost Accounting

Answer a, b, and c and provide solution.

Use FIFO METHOD
Hebert Industries uses a weighted average process costing system. Management has specified that the
normal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw material is
added at the start of the production process. Spoilage is determined upon inspection at the end of the
production process. March processing information follows.
Beginning WIP Inventory (30% complete as to conversion)
Started during March
Completed during March
Ending WIP Inventory (20% complete as to conversion)
20,000 units
120,000 units
116,400 units
16,000 units
a. How many total units are there to account for?
b. How many units were spoiled during processing? Of the spoiled units, how many
should be treated as a normal loss? As an abnormal loss?
c. What are the equivalent units of production for direct material? For conversion?|
I

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
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.
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Production information shows these costs and units for the smoothing department in August. All materials are added at the beginning of the period. The ending work in process is 30% complete as to conversion. What is the value of the inventory transferred to finished goods and the value of the WIP inventory at the end of the month?
A company has 1,500 units in ending work in process that are 30% complete after transferring out 10,000 units. All materials are added at the beginning of the process. If the cost per unit is $4 for materials and $7 for conversion, what is the cost of units transferred out and in ending work in process inventory using the weighted-average method?
Production data show 15,200 units were transferred out of a stage of production and 3,500 units remained in ending WIP inventory that was 100% complete to material and 60% complete to conversion. The unit material cost is $9 for material and $4 for conversion. What is the amount of inventory transferred out and remaining in ending work in process inventory?
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is: a. 4,471,200 b. 3,571,200 c. 3,780,000 d. 3,024,000
The standard cost summary for the most popular product of Phenom Products Co. is shown as follows, together with production and cost data for the period. One gallon each of liquid lead and varnish are added at the start of processing. The balance of the materials is added when the process is two-thirds complete. Labor and overhead are added evenly throughout the process. There were no units in process at the beginning of the month. Required: Calculate equivalent production for materials, labor, and overhead. (Be sure to refer to the standard cost summary to help determine the percentage of materials in ending work in process.) Calculate materials and labor variances and indicate whether they are favorable or unfavorable, using the diagram format shown in Figure 8-4. Determine the cost of materials and labor in the work in process account at the end of the month.
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.
For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
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.