Problem 11 Data presented below were taken from the books of the Diamond Company for the month of September. 2012. 55,000 5,000 48,000 12,000 Units transferred in Units added to production Units transferred out Units in process, end Materials 100% complete, conversion costs 70% complete C'osts transferred in 24,750 Cost added in the department Direct materials Conversion cost 7,200. 53,580 Cs Scanned with CamScanner Requirement: Prepare the production report

Problem 11 Data presented below were taken from the books of the Diamond Company for the month of September. 2012. 55,000 5,000 48,000 12,000 Units transferred in Units added to production Units transferred out Units in process, end Materials 100% complete, conversion costs 70% complete C'osts transferred in 24,750 Cost added in the department Direct materials Conversion cost 7,200. 53,580 Cs Scanned with CamScanner Requirement: Prepare the production report

Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

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

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

Chapter18: Process Cost Systems

Section: Chapter Questions

Problem 18.5APR: Cost of production report: average cost method Sunrise Coffee Company roasts and packs coffee beans....

See similar textbooks

Similar questions

Entries for process cost system Pori Ormond Carpel Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpel hacking is added al the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods 62,000 Work in ProcessSpinning Department 35,000 Work in ProcessTufting Department 28,500 Materials 17,000 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: a Materials purchased on account 500,000 b Materials requisitioned for use FiberSpinning Department 275,000 Carpet backingTufting Department 110,000 Indirect materialsSpinning Department 46,000 Indirect materialsTufting Department 39,500 c. Labor used Direct laborSpinning Department 185,000 Direct laborTufting Department 98,000 Indirect laborSpanning Department 18,500 Indirect laborTufting Department 9,000 d Depreciation charged on fixed assets: Spinning Department 12,500 Tufting Department 8,500 e. Expired prepaid factory insurance: Spinning Department 2,000 Tufting Department 1,000 f. Applied factory overhead Spinning Department 80,000 Tufting Department 55,000 g Production costs transferred from Spinning Department to Tufting Department 547,000 h Production costs transferred from Tufting Department to Finished Goods 807,200 i. Cost of goods sold during the period 795,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.
Cost of production report: average cost method Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31, 2016: ACCOUNT Work in ProcessRoasting Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 10,500 units, 75% completed 21,000 31 Direct materials, 210,400 units 246,800 267,800 31 Direct labor 135,700 403,500 31 Factory overhead 168,630 572,130 31 Goods transferred. 208,900 units ? ? 31 Bal., ? units, 25% completed ? Instructions Prepare a cost of production report, using the average cost method, and identify the missing amounts for Work in ProcessRoasting Department.
Cost of production report The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process. Work in process. January 1, 1,400 units. 75% completed 22,960 Direct materials (1,400 12.65) 517,710 Conversion (1,400 75% .00) 5,250 22,960 Materials added during January from Weaving Department, 58,000 units 742,400 Direct labor for January 134,550 Factory overhead for January 151,611 Goods finished during January (includes goods in process, January 1), 5,.200 units Work in process. January 31, 3,200 units, 30% completed a. Prepare a cost of production report for the Cutting Department. b. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).
Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the lime to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (A) present and (B) proposed production approaches. (Round percentages to one decimal place.)
Inventories: March 1 March 31Raw material P18,000 P15,000Work in process 9,000 6,000Finished goods 27,000 36,000Additional information for March:Raw material purchased P42,000Direct labor payroll 30,000Direct labor rate per hour 7.50Overhead rate per direct labor hour 10.00 Required a. prime cost incurred b.conversion cost incurred c. Cost of Goods Manufactured
Q8 Read the following Case and write appropriate answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads. i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12. ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680 iiI) What are the equivalent units of production as to material and labor & overheads in August? Material…
Q7. Suppose a company manufactures and sells a chemical product. The company processes the product in two departments. The March production data for Department B is: Beginning WIP 0 Units started this period 11,000 Units completed and transferred 9,000 Ending WIP units 2,000 Direct materials $1,100 Direct labor $2,880 Applied overhead $8,880 a) Show the physical flow of units. The 2,000 units in ending inventory are 40% complete as to conversion costs. b) Calculate the equivalent units for materials, labor and overhead. Hint: Show both materials and conversion.
Dec. 31 Jan. 1 Inventory of materials $24,000 $20,000 Inventory of work in process $8,000 $12,000 Inventory of finished goods $90,000 $80,000 Direct Materials used $210,000 Direct Labor $112,000 Selling Expenses $170,000 General and Administrative expenses $140,000 Overhead assigned to production was 192,000. Q: What would be the direct labor ? (I got 109,000 , but it was wrong) Q: Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per unit cost of manufacturing this product? (I got 25.75, but it was wrong)