P3-6A Puzzle Me is a company that recycles calendars into jigsaw puzzles. The Assembly Dept will apply glue to cardboard and then press a calendar page onto the cardboard. The cutting department cuts the calendar board into puzzle pieces and packages the puzzles in a box. The box is then moved to the finished goods store. During October the company incurred the following costs: Units: Beginning W.I.P - units Direct Materials - 100% complete Conversion Costs - 70% complete Transfer In from Cutting Department Completed and Transferred out Ending W.I.P - units Direct Materials - 100% complete Conversion Costs - 40% incomplete Costs: Beginning WIP Direct Materials - 100% complete Conversion Costs - 90% complete Transfer In Costs incurred during production in October Direct Materials Direct Labor Manufacturing Overhead Instruction Assembly Dept 5,000 35,000 30,000 10,000 $15,000 $25,000 $40,000 $80,000 $40,000 $60,000 Prepare the production cost report for Assembly department for October, 2016

P3-6A Puzzle Me is a company that recycles calendars into jigsaw puzzles. The Assembly Dept will apply glue to cardboard and then press a calendar page onto the cardboard. The cutting department cuts the calendar board into puzzle pieces and packages the puzzles in a box. The box is then moved to the finished goods store. During October the company incurred the following costs: Units: Beginning W.I.P - units Direct Materials - 100% complete Conversion Costs - 70% complete Transfer In from Cutting Department Completed and Transferred out Ending W.I.P - units Direct Materials - 100% complete Conversion Costs - 40% incomplete Costs: Beginning WIP Direct Materials - 100% complete Conversion Costs - 90% complete Transfer In Costs incurred during production in October Direct Materials Direct Labor Manufacturing Overhead Instruction Assembly Dept 5,000 35,000 30,000 10,000 $15,000 $25,000 $40,000 $80,000 $40,000 $60,000 Prepare the production cost report for Assembly department for October, 2016

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Description: P3-6APuzzle Me is a company that recycles calendars into jigsaw puzzles. The Assembly Dept willapply glue to cardboard and then press a calendar page onto the cardboard. The cuttingdepartment cuts the calendar board into puzzle pieces and packages t

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...

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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.)
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.
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.)
Eyring Manufacturing produces a component used in its production of washing machines. The time to set up and produce a batch of the components is two days. The average daily usage is 800 components, and the maximum daily usage is 875 components. Required: Compute the reorder point assuming that safety stock is carried by Eyring Manufacturing. How much safety stock is carried by Eyring?
Farmers Plus uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock8,000 kilos of material at $43.08 per kilo entered the processDirect materials added$29,000Direct wages incurred22,700Production overhead55,100Normal loss is 4% of inputA quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company’s policy to credit the process account with the scrap value of the normal loss units.Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input…
Farmers Plus uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process: There was no opening WIP stock8,000 kilos of material at $43.08 per kilo entered the processDirect materials added$29,000Direct wages incurred22,700Production overhead55,100Normal loss is 4% of inputA quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company’s policy to credit the process account with the scrap value of the normal loss units.Closing WIP was 800 units but these were incomplete, having reached the following percentages of completion for each of the elements of cost listed Input…
H4. At Vol Corporation, production is started in the fab department. The work is then transferred to the finishing department, where goods are completed and then transferred to the finished goods storeroom. Data about the company’s costs during September 20X1 follows: Material costs placed into production Fab department $ 40,100.00 Finishing department 5,100.00 Direct labor costs Fab department 112,000.00 Finishing department 18,000.00 Taxes withheld from employees’ earnings Social security tax withheld 8,060.00 Medicare tax withheld 1,885.00 Federal income tax withheld 19,500.00 Overhead costs Fab department 44,800.00 Finishing department 7,200.00 During the month, products costing $167,000 were transferred from the fab department to the finishing department; goods costing $193,000 were transferred from the finishing department to finished goods inventory; and goods that cost $154,400 were sold on account for $201,000. Required: Give the journal entries on September 30 to summarize…
Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, molding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process: There was no opening WIP stock5,000 kilos of material at $43.08 per kilo entered the processDirect materials added $92,000Direct wages incurred 65,700Production overhead 75,100Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company’s policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of cost listed Input material…
Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, molding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process: There was no opening WIP stock5,000 kilos of material at $43.08 per kilo entered the processDirect materials added $92,000Direct wages incurred 65,700Production overhead 75,100Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company’s policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of cost listed Input material…
Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6: Kirby Fasteners Plant Number 6 January to June Results Volume (Units) Total Cost 10,400 $ 189,990 9,340 180,795 12,670 215,400 13,200 228,080 11,200 207,555 10,980 204,212 Required: Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. Kirby analysts forecast a production level of 11,400 units in July. Based on the results from requirement (a), what would be the estimated production costs in July?
Oxwood Company is a metal and wood cutting manufacturer, selling products to the home construction market. Consider the following data for the month of October, 2016. Sandpaper 5,000 Material handling costs 1,75,000 Lubricants and coolants 12,500 Miscellaneous indirect manufacturing labour 1,00,000 Direct manufacturing labour 7,50,000 Direct materials (01-10-16) 1,00,000 Direct materials (31-10-16) 1,25,000 Finished Goods (01-10-16) 2,50,000 Finished Goods (31-10-16) 3,75,000 Work in progress (01-10-16) 25,000 Work in progress (31-10-16) 35,000 Plant leasing costs 1,35,000 Depreciation on plant equipment 90,000 Property taxes on plant equipment 10,000 Fire insurance on plant equipment 7,500 Direct materials purchased 11,50,000 Sales revenues 34,00,000 Marketing promotions 1,50,000 Marketing salaries 2,50,000 Distribution costs 1,75,000 Customer service costs…
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow. UnitsProduced TotalLumberCost TotalUtilitiesCost Total MachineDepreciationCost 6,000 shelves $72,000 $8,400 $125,000 12,000 shelves 144,000 15,300 125,000 24,000 shelves 288,000 29,100 125,000 30,000 shelves 360,000 36,000 125,000 1. Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Utilities Depreciation 2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per…