The Chocolate Factory is well known for their famous Chocolate Cakes. The cakes are made by putting two thirds of their materials into the production of the product up front, and the last third of materials into the production of the product at the end. Conversion Costs are allocated evenly over the production of the products. At the beginning of the period there were 1,200 cakes in production that were 40% complete. There were 3,400 cakes completed during the period and there were 864 cakes in ending work in process that were also 40% complete. Total Direct Labor cost for the period was $15,000, Total Direct Material cost for the period was $40,000, and Total Factory Overhead was 18,000. The total production costs for the current period amounted to $90,000. This is computed as follows. $8,000 $9,000 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP DM Contributed during period $17,000 $40,000 DL contributed during he period FOH contributed during the period Total: If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. $15,000 $18,000 $90,000 Total Conversion Total Total Malenel

The Chocolate Factory is well known for their famous Chocolate Cakes. The cakes are made by putting two thirds of their materials into the production of the product up front, and the last third of materials into the production of the product at the end. Conversion Costs are allocated evenly over the production of the products. At the beginning of the period there were 1,200 cakes in production that were 40% complete. There were 3,400 cakes completed during the period and there were 864 cakes in ending work in process that were also 40% complete. Total Direct Labor cost for the period was $15,000, Total Direct Material cost for the period was $40,000, and Total Factory Overhead was 18,000. The total production costs for the current period amounted to $90,000. This is computed as follows. $8,000 $9,000 Direct Materials cost already spent on Beginning WIP Conversion cost already spent on Beginning WIP Total INV cost of Beginning WIP DM Contributed during period $17,000 $40,000 DL contributed during he period FOH contributed during the period Total: If you sold 2,500 cakes for $35 a piece, record the two part journal entry necessary to memorialize it. $15,000 $18,000 $90,000 Total Conversion Total Total Malenel

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter26: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 26.7EX: Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present...

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Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the lime to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (A) present and (B) proposed production approaches. (Round percentages to one decimal place.)
Problem 9 Comely Products manufactures three products R, S and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50,000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further processing cost Selling Price Product R P30,000 P10.00 Product S P20,000 P12.00 Product T P30,000 P15.00 Assuming that all units are sold, the gross margin on sales for Product S is
Problem 9 Comely Products manufactures three products R, S and T, in a joint Process. For every ten kilos of raw materials input, the output is five kilos of R, three kilos of S and two kilos of T. During August, 50,000 kilos of raw materials costing P120,000 were processed and completed, with joint conversion costs of P200,000. Conversion costs are to be allocated to the products on the basis of market values. To make the products saleable, further processing which does not require additional raw materials was done at the following costs: Further processing cost Selling Price Product R P30,000 P10.00 Product S P20,000 P12.00 Product T P30,000 P15.00 The unit cost of Product R is (round off to two decimal places if needed)
Problem 4 Bexter Labs produces three products: A, B, and C. Bexter can sell up to 3000 units of product A, up to 2000 units of product B, and up to 2000 units of product C. Each unit of product C uses two units of A and three units of B and incurs $5 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and process one unit of raw material 1. Each processed unit of raw material 1 yields two units of A and three units of B. It costs $3 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields one unit of A and two units of B. The unit prices for the products are A, $5; B, $4; C, $25. The quality levels of each product are: A, 8; B, 7; C, 6. The average quality level of the units sold must be at least 7. Determine how to maximize Bexter's profit.
6. Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $869,700 for 2,230 production hours. Each unit requires 12 minutes of cell process time. During March, 990 DVR players were manufactured in the cell. The materials cost per unit is $69. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 990 DVR players were assembled and placed in finished goods. 940 DVR players were sold for $260 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.$fill in the blank c00542f5ffcb016_2 per unit c.…
Cornerstones of Cost Management 4th Ed - Chapter 4 Scenario III: Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below: Cutting Printing Total Direct labor hours: Scented 10,000 10,000 20,000 Regular 150,000 10,000 160,000 Total 160,000 20,000 180,000 Machine hours: Scented 2,000 8,000 10,000 Regular 8,000 72,000 80,000 10,000 80,000 90,000 Overhead costs $216,000 $504,000 $720,000 Required: 1. Calculate the overhead rates for each department (round to the nearest cent): Cutting: per direct labor hour Printing: per machine hour 2. Calculate the overhead cost per unit…
10. XYZ Co. manufactures baseball bats and wooden tops. Currently, the company makes 5,000 baseball bats each month. Each bat uses $ 1.00 in direct materials and $ 0.50 in direct labor. The company uses two activities in manufacturing the baseball bats: Cutting and Finishing. The cost associated with Cutting is $ 7,500 a month, allocated on the basis of direct labor hours. The cost associated with Finishing is $ 12,000 a month, allocated on the basis of batches. Baseball bats use 1/3 of the direct labor hours, and 40% of total batches. What is the total manufacturing cost for one baseball bat?
Question 5 Part II The following information is provided for Advent Corporation:Direct Materials: The per-unit standards are 2 pounds at $5 per pound. Last month, 11,200 pounds ofdirect materials that actually cost $53,200 were used to produce 6,000 units ofproduct.Direct Labour: The per-unit standards are 0.5 direct labor hours at $15 per hour. In producing 6,000units, the actual direct labor cost was $46,500 for 3,000 direct labor hours worked.Required:a. Compute the Materials Price Variance b. Compute the Materials Quantity Variance c. Compute the Labour Rate Variance d. Compute the Labour Quantity Variance
Case 1: The Lexington Company produces gas grills. This year’s expected production is 20,000 units. Currently, Lexington makes the side burners for its grills. Each grill includes two side burners. Lexington’s management accountant reports the following costs for making the 40,000 burners: Cost per Unit Cost for 40,000 units Direct materials $8.00 $320,000 Direct manufacturing labor 4.00 160,000 Variable manufacturing overhead 2.00 80,000 Inspection, setup, materials handling 8,000 Machine rent 12,000 Allocated fixed costs of plant administration, taxes, and insurance 80,000 Total costs $660,000 Lexington has received an offer from an outside vendor to supply any number of burners Lexington requires at $14.80 per burner. The following additional information is available: Inspection, setup, and materials-handling costs vary with the number of batches in which the burners are produced. Lexington produces…
Case 1: The Lexington Company produces gas grills. This year’s expected production is 20,000 units. Currently, Lexington makes the side burners for its grills. Each grill includes two side burners. Lexington’s management accountant reports the following costs for making the 40,000 burners: Cost per Unit Cost for 40,000 units Direct materials $8.00 $320,000 Direct manufacturing labor 4.00 160,000 Variable manufacturing overhead 2.00 80,000 Inspection, setup, materials handling 8,000 Machine rent 12,000 Allocated fixed costs of plant administration, taxes, and insurance 80,000 Total costs $660,000 Lexington has received an offer from an outside vendor to supply any number of burners Lexington requires at $14.80 per burner. The following additional information is available: Inspection, setup, and materials-handling costs vary with the number of batches in which the burners are produced. Lexington produces…
Question 1.1 Bichette Soda Company operates many bottling plants around the globe. At its Mississauga plant, where nine different brands are bottled, the following costs were incurred in the current year to produce 15,000,000 cans of soft drink: Development costs of adding the new product "Pop Plus" amounted to $614,000. Material handling costs of inspecting and handling concentrate, bottles, packages, and so forth amounted to $433,500. These costs are allocated to each production run. Incoming materials purchase costs that can be directly traced to individual products being canned and packaged. These costs are purely variable with output level and amounted to $2,213,000. Executive salaries and other central administration overhead amounted to $423,000. Plant overhead including costs related to: supervision, safety, energy and plant insurance amounted to $623,000. The cost of cleaning and calibrating equipment for each production run amounted to $171,500. Required…
Cravings Cookie Company (CCC) makes low-fat cookies. It has three processing departments - mixing, baking, and packaging. The following information pertains to a month for the mixing department, the first process. % Complete Units Materials Conversion Work in Process, beginning 16,000 100% 75% Started into production 154,000 Completed and transferred out 130,000 Work in Process, ending ? 100% 25% Costs Work in process beginning $ 25,200 $ 24,800 Costs added during the month 334,800 238,700 Assume CCC uses the weighted-average method for its process costing system. 1.How many units are in work in process at the end of the month? 2.Prepare a production report for the month that shows equivalent units, cost per equivalent unit and costs transferred out of the mixing department to the baking department. 3.What is the ending balance in the Work in…