MULTIPLE CHOICEGlendale Company is using process costing system. The following were taken fromthe books for Department 2 for the month of June. Quality control inspection is donewhen the units are 80% completed and materials are added 100% after inspection.Units receivedUnits completed and transferredUnits in process, end (60% completed)Units lost (normal)50,00040,0005,0005,0001. Equivalent production for materials is:а. 50,000b. 45,000c. 40,000d. 43,0002. Equivalent production for conversion costs is:а. 43,000b. 44,000C. 47,000d. 45,000Same data as in 1 & 2, this time we assume that the units in process, end are 90%completed.3. Equivalent production for materials is:а, 50,000.b. 45,000C. 40,000d. 43,0004. Equivalent production for conversion costs is:a. 43,000b. 44,000C. 44,500d. 48,500 Same data as in 1 & 2, this time we assume that the lost units are classified asabnormal.5. Equivalent production for materials is:a. 50,000b. 45,000C. 40,000d. 48,000A company's records show the following information for August:A. Started this month, 38,000 unitsB. Ending inventory, 12,000.units. 15% complete as to materials and 10%complete as to conversion costs.6. How many units were transferred out during the month?a. 22,000 unitsb. 26,000 unitsC. 18,000 unitsd. 42,000 units7. How many units were started and completed during the month?a. 18,000 unitsb. 22,000 unitsC. 26,000 unitsd. 30,000 units8. For materials; how many equivalent units were produced?a. 25,800 EUb. 26,000 EUC. 27,800 EUd. 50,000 EU9. For conversion costs, how many equivalent units were produced?a. "24,000 EUb. 27,200 EU:C. 27,800 EUd. 50,000 EU

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Description: MULTIPLE CHOICEGlendale Company is using process costing system. The following were taken fromthe books for Department 2 for the month of June. Quality control inspection is donewhen the units are 80% completed and materials are added 100% after ins

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MULTIPLE CHOICE Glendale Company is using process costing system. The following were taken from the books for Department 2 for the month of June. Quality control inspection is done when the units are 80% completed and materials are added 100% after inspection. Units received Units completed and transferred Units in process, end (60% completed) Units lost (normal) 50,000 40,000 5,000 5,000 1. Equivalent production for materials is: a. 50,000 b. 45,000 с. 40,000 d. 43,000 2. Equivalent production for conversion costs is: a. 43,000 b. 44,000 C. 47,000 d. 45,000 Same data as in. 1 & 2, this time we assume that the units in process, end are 90% completed. 3. Equivalent production for materials is: а, 50,000. b. 45,000 C. 40,000 d. 43,000

MULTIPLE CHOICE Glendale Company is using process costing system. The following were taken from the books for Department 2 for the month of June. Quality control inspection is done when the units are 80% completed and materials are added 100% after inspection. Units received Units completed and transferred Units in process, end (60% completed) Units lost (normal) 50,000 40,000 5,000 5,000 1. Equivalent production for materials is: a. 50,000 b. 45,000 с. 40,000 d. 43,000 2. Equivalent production for conversion costs is: a. 43,000 b. 44,000 C. 47,000 d. 45,000 Same data as in. 1 & 2, this time we assume that the units in process, end are 90% completed. 3. Equivalent production for materials is: а, 50,000. b. 45,000 C. 40,000 d. 43,000

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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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.
Use the following information for Problems 6-62 and 6-63: Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June: a. WIP, June 1, had 24,000 units (60% completed) and the following costs: b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production: c. On June 30, there were 10,000 partially completed units in process. These units were 70% complete. 6-62 Weighted Average Method, Single-Department Analysis Refer to the information for Millie Company above. Required: Prepare a production report for the assembly department for June using the weighted average method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs.
Use the following information for Problems 6-62 and 6-63: Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June: a. WIP, June 1, had 24,000 units (60% completed) and the following costs: b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production: c. On June 30, there were 10,000 partially completed units in process. These units were 70% complete. 6-63 (Appendix 6A) First-In, First-Out Method; Single-Department Analysis; One Cost Category Refer to the information for Millie Company above. Required: Prepare a production report for the assembly department for June using the FIFO method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs. (Note: Carry the unit cost computation to four decimal places.)
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.
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.
Larkin Company produces leather strips for western belts using three processes: cutting, design and coloring, and punching. The weighted average method is used for all three departments. The following information pertains to the Design and Coloring Department for the month of June: a. There was no beginning work in process. b. There were 400,000 units transferred in from the Cutting Department. c. Ending work in process, June 30: 50,000 strips, 80 percent complete with respect to conversion costs. d. Units completed and transferred out: 330,000 strips. The following costs were added during the month: a. Direct materials are added at the beginning of the process. b. Inspection takes place at the end of the process. All spoilage is considered normal. Required: 1. Calculate equivalent units of production for transferred-in materials, direct materials added, and conversion costs. 2. Calculate unit costs for the three categories of Requirement 1. 3. What is the total cost of units transferred out? What is the cost of ending work-in-process inventory? How is the cost of spoilage treated? 4. Assume that all spoilage is considered abnormal. Now, how is spoilage treated? Give the journal entry to account for the cost of the spoiled units. Some companies view all spoilage as abnormal. Explain why. 5. Assume that 80 percent of the units spoiled are abnormal and 20 percent are normal spoilage. Show the spoilage treatment for this scenario.
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. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.
Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.
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.
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.
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.