13. New Image Sports uses a process-costing system. For MMarch, the company had theBeginning work-in-process inventory 1/ complete)Direct materials are placed into production at the beginning of the process. All spoilage is normaland is detected at the end of the process. Ending WIP is 60% completed as to conversion.following activitiesUnits placed in productionGood units completedEnding work-in-process inventoryCost of beginning work in processDireet material costs, currentConversion costs, current7.200 units28,800 units21,600 units12.000 units$ 6,000$21.600S14,400Other information:Equivalent UnitsBeginning work in processStarted and completedNormal spoilageWork in process, endingTotalConversion4,80014,4002,4007,20028,800Direct Materials14,4002,40012,00028,800$0.50S0.75Equivalent-unit costsTotal cost of good units completed and transferred out under FIFO method was:A) S 29,400B) S18,000C) SI1,400D) $8,400E) None of the above

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Description: 13. New Image Sports uses a process-costing system. For MMarch, the company had theBeginning work-in-process inventory 1/ complete)Direct materials are placed into production at the beginning of the process. All spoilage is normaland is detected at

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Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the proceNS. Ending WIP is 60O% completed as to conversion. 13. New Image Sports uses a process eosting system. For March, the company had thhe Beginning work-in-process inventory (1/3 complete) following activities: Units placed in production Good units completed Ending work-in-process inventorry Cost of beginning work in process Direct material costs, current Conversion costs, current 7.200 units 28.NO0 units 21,600 units 12.000 units $ 6,000 $21.600 $14,400 Other information: Conversion 4,800 14,400 Equivalent Units Beginning work in process Started and completed Normal spoilage Work in process, ending Direct Materials 2,400 7,200 28,800 14,400 2,400 12,000 28,800 Total $0.50 SO.75 Equivalent-unit costs Total cost of good units completed and transferred out under FIF O method was: A) S 29,40o B) S18,000 C) S11,400 D) $8,400 E) None of the above

Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the proceNS. Ending WIP is 60O% completed as to conversion. 13. New Image Sports uses a process eosting system. For March, the company had thhe Beginning work-in-process inventory (1/3 complete) following activities: Units placed in production Good units completed Ending work-in-process inventorry Cost of beginning work in process Direct material costs, current Conversion costs, current 7.200 units 28.NO0 units 21,600 units 12.000 units $ 6,000 $21.600 $14,400 Other information: Conversion 4,800 14,400 Equivalent Units Beginning work in process Started and completed Normal spoilage Work in process, ending Direct Materials 2,400 7,200 28,800 14,400 2,400 12,000 28,800 Total $0.50 SO.75 Equivalent-unit costs Total cost of good units completed and transferred out under FIF O method was: A) S 29,40o B) S18,000 C) S11,400 D) $8,400 E) None of the above

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 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...

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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.)
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.)
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.
Kenkel, Ltd. 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, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (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 225,000, on account.
Materials are added at the beginning of a production process, and ending work in process inventory is 30% complete with respect to conversion costs. Use the information provided to complete a production cost report using the weighted-average method.
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?
Sonoma Products Inc. manufactures a liquid product in one department. Due to the nature of the product and the process, units are regularly lost during production. Materials and conversion costs are added evenly throughout the process. The following summaries were prepared for March: Calculate the unit cost for materials, labor, and factory overhead for March and show the costs of units transferred to finished goods and to ending work in process inventory.
Yellowstone Fabricators uses a process cost system and applies actual factory overhead to work in process at the end of the month. The following data came from the records for March: There were no beginning inventories and no ending work in process inventory. From the information presented, compute the following: 1. Unit cost of production under absorption costing and variable costing. 2. Cost of the ending inventory under absorption costing and variable costing.
Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units. The beginning work in process inventory consisted of $5,000 in materials and $8,500 in conversion costs before $16,000 of materials and $18,500 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.
Given the following information, prepare a production report with materials added at the beginning and ending work in process inventory being 80% complete with regard to conversion costs.
During March, the following costs were charged to the manufacturing department: $14886 for materials; $14,656 for labor; and $13,820 for manufacturing overhead. The records show that 30,680 units were completed and transferred, while 2,400 remained in ending inventory. There were 33,080 equivalent units of material and 31,640 of conversion costs. Using the weighted-average method, what is the cost of inventory transferred and the balance in work in process inventory?
Seacrest Company uses a process-costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Required: 1. Using the weighted average method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs (Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferred out, and (e) a cost reconciliation. 2. CONCEPTUAL CONNECTION Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labor and overhead costs into one category. They are not tracking direct labor separately. Offer some reasons for this practice.