Conversion costs are incurred evenly during the process. Direct materials costs are incurred whenproduction is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10% ofall good units that pass inspection.31. What are the equivalent units of production for direct materials and conversion costs?a. 70,000 and 77,000b. 50,000 and 69,000c. 60,000 and 77,000d. 70,000 and 75,00032. What is the cost of normal lost units?a. P157,990b. P150,95Oc. P155,990d. P145,50033. What is the cost of units completed and transferred out?a. P1,877,350b. P1,864,500c. P1,787,350d. P1,770,50O34. What is the cost assigned to units in ending work in process?a. P734,140b. P750,15Oc. P835,140d. P689,00035. What is the cost assigned to abnormal lost units?a. P67,710b. P77,600c. P87,610d. P97,710 Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishingoperation. The company uses the weighted average method of process costing. During June, thefollowing data were recorded for the Finishing Department.Units of beginning Work in Process InventoryPercentage of completion of Beg InventoryCost of direct materials in beg WIP10,00025%POUnits started70,000Units Completed50,000Units in ending WIP Inventory20,000Percentage of comple tion of Ending Inventory95%Spoiled Units10,000Costs added during the current period:Direct MaterialsP655,200Direct LaborP635,600Manufacturing OverheadP616,000WIP, Beg:Transferred In CostsP82,900Conversion CostsP42,000Costs if units transferred in during current period P647,500

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Description: Conversion costs are incurred evenly during the process. Direct materials costs are incurred whenproduction is 90% complete. The inspection point is at 80% stage of production. Normal spoilage is 10% ofall good units that pass inspection.31. What ar

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Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation. The company uses the weighted average method of process costing. During June, the following data were recorded for the Finishing Department. Units of beginning Work in Process Inventory Percentage of comple tion of Beg Inventory Cost of direct materials in beg WIP 10,000 25% PO Units started 70,000 Units Completed Units in ending WIP Inventory Percentage of completion of Ending Inventory Spoiled Units 50,000 20,000 95% 10,000 Costs added during the current period: Direct Materials P655,200 Direct Labor P635,600 Manufacturing Overhead WIP, Beg: P616,000 Transferred In Costs P82,900 Conversion Costs P42,000 Costs if units transferred in during current period P647,500

Plastic Queen Manufacturing Company produces a plastic toy in a two-stage molding and finishing operation. The company uses the weighted average method of process costing. During June, the following data were recorded for the Finishing Department. Units of beginning Work in Process Inventory Percentage of comple tion of Beg Inventory Cost of direct materials in beg WIP 10,000 25% PO Units started 70,000 Units Completed Units in ending WIP Inventory Percentage of completion of Ending Inventory Spoiled Units 50,000 20,000 95% 10,000 Costs added during the current period: Direct Materials P655,200 Direct Labor P635,600 Manufacturing Overhead WIP, Beg: P616,000 Transferred In Costs P82,900 Conversion Costs P42,000 Costs if units transferred in during current period P647,500

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 15E: Softkin Company manufactures sun protection lotion. The Mixing Department, the first process...

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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.
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
Dama Company produces womens blouses and uses the FIFO method to account for its manufacturing costs. The product Dama makes passes through two processes: Cutting and Sewing. During April, Damas controller prepared the following equivalent units schedule for the Cutting Department: Costs in beginning work in process were direct materials, 20,000; conversion costs, 80,000. Manufacturing costs incurred during April were direct materials, 240,000; conversion costs, 320,000. Required: 1. Prepare a physical flow schedule for April. 2. Compute the cost per equivalent unit for April. 3. Determine the cost of ending work in process and the cost of goods transferred out. 4. Prepare the journal entry that transfers the costs from Cutting to Sewing.
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.
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.
Mimasca Inc. manufactures various holiday masks. Each mask is shaped from a piece of rubber in the molding department. The masks are then transferred to the finishing department, where they are painted and have elastic bands attached. Mimasca uses the weighted average method. In May, the molding department reported the following data: a. BWIP consisted of 15.000 units, 20% complete. Cost in beginning inventor) totaled 1,656. b. Costs added to production during the month were 26,094. c. At the end of the month, 45.000 units were transferred out to finishing. Then, 5,000 units remained in EWIP, 25% complete. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production. 3. Compute unit cost. 4. Calculate the cost of goods transferred to finishing at the end of the month. Calculate the cost of ending inventor). 5. CONCEPTUAL CONNECTION Assume that the masks are inspected at the end of the molding process. Of the 45,000 units inspected, 2,500 are rejected as faulty and are discarded. Thus, only 42,500 units are transferred to the finishing department. The manager of Mimasca considers all such spoilage as abnormal and does not want to assign any of this cost to the 42.500 good units produced and transferred to finishing. Your task is to determine the cost of this spoilage of 2,500 units and then to discuss how you would account for this spoilage cost. Now suppose that the manager feels that this spoilage cost is just part of the cost of producing the good units transferred out. Therefore, he wants to assign this cost to the good production. Explain how this would be handled. (Hint: Spoiled units are a type of output, and equivalent units of spoilage can be calculated.)
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?
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September: a. All materials are added at the beginning of the process. b. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs. c. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs. d. Started in process, 95,000 units. Required: 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method.
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.
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.)
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.