% of Completion for Conversion Costs Physical Conversion Direct Units Materials Costs Work in process, beginning Started during May Completed and transferred out Work in process, ending Standard cost per unit Costs added during May 22,000 60% $ 48,400 $ 33,000 95,000 87,000 30,000 75% $ 2.20 $ 2.50 S207,500 $238,000 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 2. Compute the total standard costs of sunglasses transferred out in May and the total standard costs of the May 31 inventory of work in process. 3. Compute the total May variances for direct materials and conversion costs. 4. Prepare summarized journal entries to record both the actual costs and standard costs for direct ma- terials and conversion costs, including the variances for both production costs. Required

% of Completion for Conversion Costs Physical Conversion Direct Units Materials Costs Work in process, beginning Started during May Completed and transferred out Work in process, ending Standard cost per unit Costs added during May 22,000 60% $ 48,400 $ 33,000 95,000 87,000 30,000 75% $ 2.20 $ 2.50 S207,500 $238,000 1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. 2. Compute the total standard costs of sunglasses transferred out in May and the total standard costs of the May 31 inventory of work in process. 3. Compute the total May variances for direct materials and conversion costs. 4. Prepare summarized journal entries to record both the actual costs and standard costs for direct ma- terials and conversion costs, including the variances for both production costs. Required

Name: Standard costing, journal entries. The Warner Company manufactures rep
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Description: Standard costing, journal entries. The Warner Company manufactures reproductions of expensive sunglasses. Warner uses the standard-costing method of process costing to account for the production of the sunglasses. All materials are added at the begin

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 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...

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Product X is obtained after it passes through three distinct processes. The following cost information is available for the operation. Total Process 1 Process 2 Process 3 Direct materials added $15,084 $5,200 $3,960 $5,924 Direct wages 18,000 4,000 6,000 8,000 Production overhead 18,000 1,000 units @ $6.00 per unit were introduced in Process 1. Production overhead is to be distributed as a percentage of direct wages. Actual Output Units Normal Loss Scrap Value per Unit Process 1 950 5% $4.00 Process 2 840 10% $8.00 Process 3 750 15% $10.00 Prepare the process accounts and post your responses in the Discussion Forum.
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EQUIVALENT UNITS—WEIGHTED AVERAGE METHODThe following data are for four independent process-costing departments. Inputs areadded continuously.ABCDBeginning inventory 3,000 2,000 — 25,000Percent completion 30% 75% — 60%Units started 19,000 20,000 48,000 35,000Ending inventory 4,000 — 8,000 10,000Percent completion 20% — 25% 10%Required:Compute the equivalent units of production for each of the preceding departments using the weighted average method.
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