processing departments. Data for May 2014 are as follows:Problem 2. Average CostingMansing denarmpany manufacturing virgin coconut oil that goes through twoBottlingTotalided during theDirect matDirect LabManufact39.962TotalMixing DepartmentDepartmentLiters transferred to Bottling DepartmentLiters transferred to Finished goodsLiters on hand at end of monthStage of Completion:75,00068,00015,0009,000dditional InfoAll direhile convers100%Prior department costsDirect Materials100%100%lequired:1. ComConversion costs60%Costs incurred during May:Direct MaterialsP18,480P32,160Conversion CostsP25,9002. PBeginning work-in-process inventoryLiters8,0008,000Costs:Prior department's costsDirect MaterialsConversion CostsP6,350P1,680P4,020P2,220All materials are added at the start of the process in the Mixing Department.64 Required:1. Compute equivalent unit of production.a. Mixing Departmentb. Bottling Department2. Prepare a separate cost of production reporta. Mixing Departmentb. Bottling Department

Name: processing departments. Data for May 2014 are as follows:Problem 2. A
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Description: processing departments. Data for May 2014 are as follows:Problem 2. Average CostingMansing denarmpany manufacturing virgin coconut oil that goes through twoBottlingTotalided during theDirect matDirect LabManufact39.962TotalMixing DepartmentDepartmen

Equivalent Unit Of Production is the proportionate amount of units completed during a particular…

Business

Accounting

Ka Louie Company manufacturing virgin coconut oil that goes through two Bottling Problem 2. Average Costing Ide processing departments. Data for May 2014 are as follows: Mixing Department Department Liters transferred to Bottling Department Liters transferred to Finished goods Liters on hand at end of month 75,000 68,000 15,000 9,000 Stage of Completion: 100% Prior department costs Direct Materials Conversion costs Costs incurred during May: 100% 60% 100% Direct Materials P18,480 P32,160 Conversion Costs P25,900 eginning work-in-process inventory Liters

Ka Louie Company manufacturing virgin coconut oil that goes through two Bottling Problem 2. Average Costing Ide processing departments. Data for May 2014 are as follows: Mixing Department Department Liters transferred to Bottling Department Liters transferred to Finished goods Liters on hand at end of month 75,000 68,000 15,000 9,000 Stage of Completion: 100% Prior department costs Direct Materials Conversion costs Costs incurred during May: 100% 60% 100% Direct Materials P18,480 P32,160 Conversion Costs P25,900 eginning work-in-process inventory Liters

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 23E: Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required:...

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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.
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.)
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.
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
Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Required: 1. Calculate the unit cost for June using the weighted average method. 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to reduce the unit cost to 2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?
Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
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.
Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
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?
Use the following information for Multiple-Choice Questions 6-7 through 6-9: The mixing department incurred 46,000 of manufacturing costs during the month of September. The department transferred out 2,300 units and had 500 units in EWIP, 40% complete. There was no BWIP. 6-7 The unit cost for the month of September is a. 20. b. 18.40. c. 16.43. d. 200. e. 184.