Please refer the problem from the attached images below.Required:Compute the units of equivalent production for materials and conversion costs.Compute the cost of ending work in process inventory.Prepare a cost of production report. Problem 10-8: Equivalent Production and Computation of CostThe Nature Medicine Co. manufactures an all purpose tablet. Four directmaterials are put into production in Department A. Department B placesthe units received from Department A into quick-dissolving tablets. Rawmaterials (all direct) are placed into production in Department A as fol-lows:Raw materials 101 (aspirin): Beginning of processRaw materials 102 (caffeine): When units are 40% completeRaw materials 103 (decongestant): When units are 60% completeRaw materials 104 (muscle relaxer): When units are 95% complete 394Chapter 10Problem 10-8- ContinuedJuly Data, Department A:300,000250,000Units started in processUnits transferred outEnding units in process (30% are 45% complete,35% are 50% complete, 15% are 65% complete,20% are 98% complete)50,000Cost incurred:Direct materials:101 P 6,000.003,000.00103 9,362.50104 13,000.00102Conversion117,763.50Required:Compute the units of equivalent production for materials and con-version costs.1.Compute the cost of ending work in process inventory.2.

Equivalent unit of production: It is a term that is applied to the WIP inventory(Work in process)…

Problem 10-8- Continued July Data, Department A: Units started in process Units transferred out 300,000 250,000 Ending units in process (30% are 45% complete, 35% are 50% complete, 15% are 65% complete, 20% are 98% complete) 50,000 Cost incurred: Direct materials: 101 P 6,000.00 3,000.00 9,362.50 102 103 104 13,000.00 Conversion 117,763.50 Required: 1. Compute the units of equivalent production for materials and ce version costs. 2. Compute the cost of ending work in process inventory.

Problem 10-8- Continued July Data, Department A: Units started in process Units transferred out 300,000 250,000 Ending units in process (30% are 45% complete, 35% are 50% complete, 15% are 65% complete, 20% are 98% complete) 50,000 Cost incurred: Direct materials: 101 P 6,000.00 3,000.00 9,362.50 102 103 104 13,000.00 Conversion 117,763.50 Required: 1. Compute the units of equivalent production for materials and ce version costs. 2. Compute the cost of ending work in process inventory.

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Activity-Based Costing

Section: Chapter Questions

Problem 3ADM: Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the...

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Problem 9-21 Multiple Products, Materials, and Processes [LO9-4, LO9-5] Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis): Raw Material Standard Labor Time Product X442 Y661 Sintering Finishing Alpha6 1.8 kilos 2.4 liters 0.20 hours 1.20 hours Zeta7 4.4 kilos 4.4 liters 0.40 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Material Purchases Purchase Cost StandardPrice Used inProduction X442 15,100 kilos $40,770 $2.50 per kilo 9,600 kilos Y661 16,100 liters $22,540 $1.50 per liter 14,100 liters The following additional information is available: The company recognizes price variances when materials are purchased. The standard labor…
30. Process costing techniques should be used in assigning costs to products a. when production is customized to individual customer's requests b. if the products are manufactured on the basis of each order received. c. when production is only partially completed during the accounting period. d. if the products are composed of mass-produced, homogeneous units. 31. D Company uses the FIFO method of process costing. The beginning work-in-process inventory consisted of $6,400 of materials cost and $9,600 of conversion cost. Current month costs were $31,740 for materials and $51,100 for conversion. Equivalent Units have already been calculated for you under the FIFO method and were 69,000 equivalent units for materials and 70,000 equivalent units for conversion. Ending inventory of 5,000 units were 100% completed as to materials and 40% completed as to conversion. The cost assigned to ending work-in-process inventory would be _____. a. $3,760 b. $3,200 c. none of the other answers…
Exercise 1: Process costingSelzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recordedin the Blending Department during July:Production data:TotalUnits in process, July 1(materials 100% complete; conversion 30% complete)10,000Units started into Production170,000Units complete and transferred to Packaging?Units in process, July 31 (materials 100% complete; conversion 40% complete)20,000Cost data:Work in process inventory, July 1:Materials cost$ 8,500Conversion cost4,900$13,400Cost added during the month:Materials cost$139,400Conversion cost244,200383,600Total Cost$397,000All materials are added at the beginning of work in the Blending Department. Required:Prepare a production report in weighted average method and FIFO method for the Blending Department for July. Use the following 3 steps as a guide in preparing your report:1.Prepare a quantity schedule and compute the equivalents units2.Compute the…
Cornerstones of Cost Management 4th Ed - Chapter 4 Scenario III: Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below: Cutting Printing Total Direct labor hours: Scented 10,000 10,000 20,000 Regular 150,000 10,000 160,000 Total 160,000 20,000 180,000 Machine hours: Scented 2,000 8,000 10,000 Regular 8,000 72,000 80,000 10,000 80,000 90,000 Overhead costs $216,000 $504,000 $720,000 Required: 1. Calculate the overhead rates for each department (round to the nearest cent): Cutting: per direct labor hour Printing: per machine hour 2. Calculate the overhead cost per unit…
6. Ralston Fine Hardwoods uses a process costing system to account for its wood processing plant. Beginning inventory consisted of 4,000 board feet of lumber (100% complete as to materials, 35% complete as to conversion). Ralston added 132,000 board feet into the process during April. On April 30, there were 10,000 board feet still in process (100% complete as to materials, 22% complete as to conversion). Calculate the equivalent units of production for each input, assuming Ralston uses FIFO. Materials Conversion costs Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Activity-Based Product Costing Roberts Company produces two weed eaters: basic and advanced. The company has four activities: machining, engineering, receiving, and inspection. Information on these activities and their drivers is given below. Basic Advanced Total Units produced 110,000 330,000 — Prime costs $9,020,000 $38,280,000 $47,300,000 Machine hours 110,000 550,000 660,000 Engineering hours 400 3,600 4,000 Receiving orders 300 900 1,200 Inspection hours 1,000 2,000 3,000 Overhead costs: Machining $9,900,000 Engineering 2,240,000 Receiving 240,000 Inspecting products 390,000 Required: 1. Calculate the four activity rates. Machining rate 15 Engineering rate 560 Receiving rate 200 Inspecting rate 130 2. Calculate the unit costs using…
sub-part 4 for question Silver Company manufactures kites and has the followinginformation available for the month of April:Work in process, April 1(100% complete for materials, 40% for conversion) 58,000 unitsDirect materials $ 86,000Conversion cost $ 116,000Number of units started 164,000 unitsApril costsDirect materials $ 232,000Conversion cost $ 342,000Work in process, April 30(100% complete for materials, 20% for conversion) 83,000 units!Required:Using the FIFO method, complete each of the following steps:1. Reconcile the number of physical units worked on during the period.2. Calculate the number of equivalent units.3. Calculate the cost per equivalent unit.4. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below.Reconcile the total cost of work in process. (Use Cost per Equivalent Unit rounded to 5 dto the nearest whole dollar amount.)Required 1 Required 2 Required 3 Required 4Current Period CostsPrior…
Deuter Int’l Business manufactures two products, Product L11 and Product L12. The company is considering adopting an activity-based costing system with the following activity pools, activity measures, and expected activity: Expected Activity Activity Cost Pools Estimated Overhead Cost Product L11 Product 12 Total Machine setups required $200,000 600 1,400 2,000 Purchase orders issued 38,382 500 100 600 Machine-hours required 92,650 6,800 10,200 17,000 $331,032 The amount overhead costs assigned to Product L11 would be closest to: Question 15 options: 1) $331,032 2) $129,045 3) $165,516 4) $130,758
E4-1A Equivalent Units Calculations--Weighted Average Method Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at the beginning of the process in the Compounding Department. Conversion costs are added evenly throughout each process. Ferris uses the weighted average method of process costing. In the Compounding Department, beginning work-in-process was 6,000 pounds (70% processed), 38,000 pounds were started in process, 36,000 pounds transferred out, and ending work-in-process was 60% processed. Calculate equivalent units for March 2019 for the Compounding Department.
5-22 Plant-wide, department, and activity-cost rates. Acclaim Inc. makes two styles of trophies, basicand deluxe, and operates at capacity. Acclaim does large custom orders. Acclaim budgets to produce10,000 basic trophies and 5,000 deluxe trophies. Manufacturing takes place in two production departments:forming and assembly. In the forming department, indirect manufacturing costs are accumulated in twocost pools, setup and general overhead. In the assembly department, all indirect manufacturing costs areaccumulated in one general overhead cost pool. The basic trophies are formed in batches of 200 but because of the more intricate detail of the deluxe trophies, they are formed in batches of 50.The controller has asked you to compare plant-wide, department, and activity-based cost allocation.Acclaim Budgeted Information for the Year Ended November 30, 2017Forming Department Basic Deluxe TotalDirect materials $60,000 $35,000 $95,000Direct manufacturing labor 30,000 20,000 50,000Overhead…
Problem 8-54 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-4, 5) Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April. Work in process on April 1 had 75,000 units made up of the following. Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 192,000 100 % Costs added by the Assembling Department Direct materials $ 120,000 100 % Direct labor 43,200 60 % Manufacturing overhead 27,600 50 % $ 190,800 Work in process, April 1 $ 382,800 During April, 375,000 units were transferred in from the Molding Department at a cost of $960,000. The Assembling Department added the following costs.…
7-8 Calculating product costs using activity-based costing (CIMA adapted) (LO 2) Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Activity Overhead $ Cost Driver Cost DriverQuantity Machine setup $ 200,000 # of setups 800 Inspection 120,000 # of quality tests 400 Materials receiving 252,000 # of purchase orders 1,800 The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 Production 15,000 units Required a.Calculate the activity rate for each cost pool. b.Calculate the activity-based unit cost of the smartphone case.