Problem no. 3 Keepin makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into 6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather and then coated with a preservative. The following production and cost data are available for March 2022 (units are 6-foot fence sections): Units Beginning WIP Inventory (March 1) Complete as to material Complete as to conversion Units started in March Units completed in March Ending WIP Inventory (March 31) Complete as to material Complete as to conversion Costs Beginning WIP Inventory Transferred in Material Conversion Current Transferred in Material Conversion Required: 1. 2. Cutting Dept. 1,300 80% 75% 4,800 ? 1,100 40% 20% n/a $ 8,345 7,720 n/a 35,200 21,225 Coating Dept. 900 0% 60% ? 4,500 ? 0% 40% $11,840 0 1,674 ? 4,950 11,300 Prepare, in good form, a weighted average cost of production report for the Cutting and Coating Department for March 2022. Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating Department for March 2022.

Problem no. 3 Keepin makes fencing in a two-stage production system. In the Cutting Department, wood is cut and assembled into 6-foot fence sections. In the Coating Department, the sections are pressure-treated to resist the effects of weather and then coated with a preservative. The following production and cost data are available for March 2022 (units are 6-foot fence sections): Units Beginning WIP Inventory (March 1) Complete as to material Complete as to conversion Units started in March Units completed in March Ending WIP Inventory (March 31) Complete as to material Complete as to conversion Costs Beginning WIP Inventory Transferred in Material Conversion Current Transferred in Material Conversion Required: 1. 2. Cutting Dept. 1,300 80% 75% 4,800 ? 1,100 40% 20% n/a $ 8,345 7,720 n/a 35,200 21,225 Coating Dept. 900 0% 60% ? 4,500 ? 0% 40% $11,840 0 1,674 ? 4,950 11,300 Prepare, in good form, a weighted average cost of production report for the Cutting and Coating Department for March 2022. Prepare, in good form, a First In First Out cost of production report for the Cutting and Coating Department for March 2022.

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 30E: Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process...

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.
Eyring Manufacturing produces a component used in its production of washing machines. The time to set up and produce a batch of the components is two days. The average daily usage is 800 components, and the maximum daily usage is 875 components. Required: Compute the reorder point assuming that safety stock is carried by Eyring Manufacturing. How much safety stock is carried by Eyring?
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
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units.The following details relate to production for the month of October 2020, for the Baking Department.i) Work-in-process, October 1: -0-ii) Transfer from Moulding: 2,000 units valued at $336.40 eachiii) Other manufacturing costs incurred during October:Direct material addedDirect Manufacturing WagesManufacturing Overhead Applied$202,120$212,840$306,160iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each.v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From MouldingDirect material addedConversion costs100%40%12½%vi) 1,200 pieces were completed and transferred out to the…
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units.The following details relate to production for the month of October 2020, for the Baking Department.i) Work-in-process, October 1: -0-ii) Transfer from Moulding: 2,000 units valued at $336.40 eachiii) Other manufacturing costs incurred during October:Direct material added $202,120Direct Manufacturing Wages $212,840.Manufacturing Overhead Applied $306,160iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each.v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From Moulding 100%Direct material…
Required information[The following information applies to the questions displayedbelow.]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 weighted-average 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. Required:Using the weighted-average 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.…
Required information[The following information applies to the questions displayedbelow.]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…
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking &Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units.The following details relate to production for the month of October 2020, for the Baking Department.i) Work-in-process, October 1: -0-ii) Transfer from Moulding: 2,000 units valued at $336.40 eachiii) Other manufacturing costs incurred during October:Direct material addedDirect Manufacturing WagesManufacturing Overhead Applied$202,120$212,840$306,160iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from theBaking Department are deemed to be scrap and sold at $382 each.v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the followingdegree of completion:From MouldingDirect material addedConversion costs100%40%12½%vi) 1,200 pieces were completed and transferred out to the Spraying…
Excellent Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March: Units Beginning work-in-process inventory, March 1 12,600 Started production during March 115,500 Completed production during March 92,400 Ending work-in-process inventory, March 31 35,700 The beginning inventory was 65% complete with respect to materials and 25% complete with respect to conversion costs. The ending inventory was 80% complete with respect to materials and 45% complete with respect to conversion costs.Costs pertaining to the month of March are as follows: Beginning inventory costs: materials = $46,200; conversion cost = $32,025Costs incurred during March: materials used = $617,400; conversion cost = $655,200 Which of the following is the unit cost of materials calculated using the weighted average method? (Note: Round your answer to two decimal places.)…
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each iii) Other manufacturing costs incurred during October:Direct material added $202,120Direct Manufacturing Wages $212,840Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From Moulding 100%Direct material added 40%Conversion costs 12½% vi) 1,200 pieces were completed and…
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each iii) Other manufacturing costs incurred during October:Direct material added $202,120Direct Manufacturing Wages $212,840Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From Moulding 100%Direct material added 40%Conversion costs 12½% vi) 1,200 pieces were completed and…
Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated fromgood units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each iii) Other manufacturing costs incurred during October:Direct material added $202,120Direct Manufacturing Wages $212,840Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion:From Moulding 100%Direct material added 40%Conversion costs 12½% vi) 1,200 pieces were completed and…