Please solve it on paper by hand.Landa company uses a step down allocation costing method to determine the cost of its products.The company uses the costing method of the first issued from the first import. Product inspection is performed on 60% ofcompleted products and normal waste is 5% of inspected healthy units. Direct materials are put into operation immediatelyafter product inspection:The following information is related to October:Goods completed during the first manufacture of 10,000 units 7. 25.Units started to produce 75,000 units.Supplementary and transfer units to the warehouse 60,000 units.Units under construction at the end of the period 20,000 units %. 75 completed.Labor costs during the construction of the first course.The total cost of labor during the first construction period is 4664,000 Rials.Expenses incurred during the course:Direct materials 80,000,000 Rials.Direct salary 80,000,000 Rials.Factory overhead 400,000,000 Rials.It is desirable to prepare a production cost report.

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Description: Please solve it on paper by hand.Landa company uses a step down allocation costing method to determine the cost of its products.The company uses the costing method of the first issued from the first import. Product inspection is performed on 60% ofc

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Landa company uses a step down allocation costing method to determine the cost of its products. The company uses the costing method of the first issued from the first import. Product inspection is performed on 60% of completed products and normal waste is 5% of inspected healthy units. Direct materials are put into operation immediately after product inspection: The following information is related to October: Goods completed during the first manufacture of 10,000 units . 25. Units started to produce 75,000 units. Supplementary and transfer units to the warehouse 60,000 units. Units under construction at the end of the period 20,000 units % 75 completed. Labor costs during the construction of the first course. The total cost of labor during the first construction period is 4664,000 Rials. Expenses incurred during the course: Direct materials 80,000,000 Rials. Direct salary 80,000,000 Rials. Factory overhead 400,000,000 Rials. It is desirable to prepare a production cost report.

Landa company uses a step down allocation costing method to determine the cost of its products. The company uses the costing method of the first issued from the first import. Product inspection is performed on 60% of completed products and normal waste is 5% of inspected healthy units. Direct materials are put into operation immediately after product inspection: The following information is related to October: Goods completed during the first manufacture of 10,000 units . 25. Units started to produce 75,000 units. Supplementary and transfer units to the warehouse 60,000 units. Units under construction at the end of the period 20,000 units % 75 completed. Labor costs during the construction of the first course. The total cost of labor during the first construction period is 4664,000 Rials. Expenses incurred during the course: Direct materials 80,000,000 Rials. Direct salary 80,000,000 Rials. Factory overhead 400,000,000 Rials. It is desirable to prepare a production cost report.

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 21E: The Converting Department of Tender Soft Tissue Company uses the weighted average method and had...

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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?
During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had 120 of raw materials and 180 of conversion costs incurred. Materials added during December were 540, and conversion costs of 1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method. The equivalent units of production used to compute conversion costs for December were: a. 110 units. b. 104 units. c. 100 units. d. 92 units.
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.
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.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.
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.
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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.)
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.
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.