Problem 2. Average CostingKa Louie Company manufacturing virgin coconut oil that goes through twoprocessing departments. Data for May 2014 are as follows:Mixing DepartmentBottlingDepartmentLiters transferred to Bottling DepartmentLiters transferred to Finished goodsLiters on hand at end of month75,00068,00015,0009,000Stage of Completion:Prior department costsDirect Materials100%100%Conversion costsCosts incurred during May:Direct MaterialsConversion CostsBeginning work-in-process inventory60%100%P18,480P32,160P25,900Liters8,0008,000Costs:Prior department's costsDirect MaterialsConversion CostsP6,350P1,680P4,020P2,220All materials are added at the start of the process in the Mixing Department.1.Compute equivalent unit of production.a. Mixing Departmentb. Bottling Department2. Prepare a separate cost of productionreport.a. Mixing Departmentb. Bottling Department

Name: Problem 2. Average CostingKa Louie Company manufacturing virgin cocon
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Description: Problem 2. Average CostingKa Louie Company manufacturing virgin coconut oil that goes through twoprocessing departments. Data for May 2014 are as follows:Mixing DepartmentBottlingDepartmentLiters transferred to Bottling DepartmentLiters transferred

Cost of production refers to the total costs that are incurred to produce the product. These costs…

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Problem 2. Average Costing Ka Louie Company manufacturing virgin coconut oil that goes through two processing departments. Data for May 2014 are as follows: Bottling Department Mixing Department Liters transferred to Bottling Department Liters transferred to Finished goods Liters on hand at end of month 75,000 68,000 15,000 9,000 Stage of Completion: Prior department costs Direct Materials 100% 100% 60% Conversion costs 100% Costs incurred during May: Direct Materials P18,480 Conversion Costs P32,160 P25,900 Beginning work-in-process inventory Liters 8,000 8,000 Costs: P6,350 Prior department's costs Direct Materials P1,680 P4,020 Conversion Costs P2.220 All materials are added at the start of the process in the Mixing Department. 1.Compute equivalent unit of production. a. Mixing Department b. Bottling Department 2. Prepare a separate cost of production report. a. Mixing Department b. Bottling Department

Problem 2. Average Costing Ka Louie Company manufacturing virgin coconut oil that goes through two processing departments. Data for May 2014 are as follows: Bottling Department Mixing Department Liters transferred to Bottling Department Liters transferred to Finished goods Liters on hand at end of month 75,000 68,000 15,000 9,000 Stage of Completion: Prior department costs Direct Materials 100% 100% 60% Conversion costs 100% Costs incurred during May: Direct Materials P18,480 Conversion Costs P32,160 P25,900 Beginning work-in-process inventory Liters 8,000 8,000 Costs: P6,350 Prior department's costs Direct Materials P1,680 P4,020 Conversion Costs P2.220 All materials are added at the start of the process in the Mixing Department. 1.Compute equivalent unit of production. a. Mixing Department b. Bottling Department 2. Prepare a separate cost of production report. a. Mixing Department b. Bottling Department

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 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...

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Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
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
Use the following information for Multiple-Choice Questions 6-7 through 6-9: The mixing department incurred 46,000 of manufacturing costs during the month of September. The department transferred out 2,300 units and had 500 units in EWIP, 40% complete. There was no BWIP. 6-7 The unit cost for the month of September is a. 20. b. 18.40. c. 16.43. d. 200. e. 184.
Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Required: 1. Calculate the unit cost for June using the weighted average method. 2. Using the weighted average method, determine the cost of EWIP and the cost of the goods transferred out. 3. CONCEPTUAL CONNECTION Cassien had just finished implementing a series of measures designed to reduce the unit cost to 2.00 and was assured that this had been achieved and should be realized for Junes production. Yet, upon seeing the unit cost for June, the president of the company was disappointed. Can you explain why the full effect of the cost reductions may not show up in June? What can you suggest to overcome this problem?
Apeto Company produces premium chocolate candy bars. Conversion costs are added uniformly. For February, EWIP is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the process. The following information is provided for February: Physical flow schedule: Required: 1. Calculate the equivalent units for each input category. 2. Calculate the unit cost for each category and in total. 3. What if a different type of materials is also added at the end of the process (a candy wrapper), costing 4,800? Calculate the new unit cost.
A company manufactures a liquid product called Crystal. The basic ingredients are put into process in Department 1. In Department 2, other materials are added that increase the number of units being processed by 50%. The factory has only two departments. Calculate the following for each department: (a) unit cost for the month for materials, labor, and factory overhead, (b) cost of the units transferred, and (c) cost of the ending work in process.
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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.)