Problem no. 5 Kennedy Decorative Tray Company uses the average method and adds materials at the start of production in the Forming Department. Data related to materials used in October 2018 are as follows: 1 out 31 Units Work in Process, October 2,150 Started in October Completed and transferred 10,000 Abnormal lost units Work in process, October 2,975 Cost data 10,850 25 Materials in beg WIP inventory P60,000 Cost of materials added during month P304,000 What is the cost per equivalent of production for materials for the month?

Problem no. 5 Kennedy Decorative Tray Company uses the average method and adds materials at the start of production in the Forming Department. Data related to materials used in October 2018 are as follows: 1 out 31 Units Work in Process, October 2,150 Started in October Completed and transferred 10,000 Abnormal lost units Work in process, October 2,975 Cost data 10,850 25 Materials in beg WIP inventory P60,000 Cost of materials added during month P304,000 What is the cost per equivalent of production for materials for the month?

Name: Kindly answer with complete solution please. Problem no. 5Kennedy Deco
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Description: Kindly answer with complete solution please. Problem no. 5Kennedy Decorative Tray Company uses theaverage method and adds materials at thestart of production in the FormingDepartment. Data related to materials used inOctober 2018 are as follows:1out3

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 69P: (Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for...

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(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.
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.
questions i, iii & iv please Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, molding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process: There was no opening WIP stock5,000 kilos of material at $43.08 per kilo entered the processDirect materials added $92,000Direct wages incurred 65,700Production overhead 75,100Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company’s policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of…
Question 3Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, molding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process:There was no opening WIP stock5,000 kilos of material at $43.08 per kilo entered the processDirect materials added $92,000Direct wages incurred 65,700Production overhead 75,100Normal loss is 4% of inputA quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company’s policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of cost listedInput…
Question 3Tools & More uses three departments to produce plastic handles for screwdrivers. Forming thehandles require mixing the raw materials, molding and drying. After the drying process, thescrewdrivers are completed by assembling the handles and the shanks and packing forshipment. The following information relates to the molding process: There was no opening WIP stock5,000 kilos of material at $43.08 per kilo entered the processDirect materials added $92,000Direct wages incurred 65,700Production overhead 75,100Normal loss is 4% of input A quality control check was done at the end of the molding process and 350 handles wererejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00each, and it is company’s policy to credit the process account with the scrap value of thenormal loss units.Closing WIP was 800 units but these were incomplete, having reached the followingpercentages of completion for each of the elements of cost listed Input…
sub-part 4 to be answered equired 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…
Mannassass Company manufactures chairs. The following information was given for the company:Units, beginning work in process0Units started20,000Units completed?Units, ending work in process5,000Cost of direct materials$440,000Cost of conversion$64,000Materials in the ending inventory were 100% complete, and conversion in the ending inventory was 20% complete. What are theequivalent units for materials and conversion, respectively?a. 20,000; 16,000b. 20,000; 20,000c. 15,000; 15,000d. 15,000; 14,000
Required information Problem 03-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: BeginningInventory EndingInventory Work in process inventory—Cutting 73,500 75,500 Work in process inventory—Stitching 93,300 69,800 Finished goods inventory 26,100 14,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 40,000 Direct materials used—Cutting 22,500 Direct materials used—Stitching 0 Direct labor Direct labor—Cutting $ 17,100 Direct labor—Stitching…
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…
Question 2Vaasa Chemicals makes a product by way of two processes – Mixing & Refining. Its processcosting system in the Mixing Department has two direct cost categories (Chemical P &Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of theoperations in the Mixing Department and Chemical Q is added when the product is threefourths (75%) completed in the Mixing Department. The following information pertains to theMixing department for July: UnitsWork in process inventory, July 1 0Started production 50,000Completed and transferred to Refining Department 35,000Ending work in process inventory [two-thirds (66⅔%)of the way throughthe Mixing process] 15,000 CostsBeginning WIP inventory $0Costs added during July:Chemical P 250,000Chemical Q 70,000Direct Labour 32,000Manufacturing overhead 103,000Required:i) Compute the equivalent units in the Mixing Department for direct materials and forconversion costsii) Compute :a) the cost of the units completed and…
Please assist with questions d and e. Thank you. Fen Furnishings produces brass handles for the furniture industry in a four-stage process –Mixing, Moulding,Polishing and Packaging. Costs incurred in the Polishing Department during January are summarized as follows:WIP - Polishing Process A/CJanuary 1 Bal.Transfer from MouldingDirect Materials AddedDirect LabourManufacturing Overhead20,000$ 01,310,000391,600638,000307,400Normal losses are estimated to be 2½% of input during the period. Inspection takes place during the processingoperation, at which point damaged handles are separated from good handles and sold as scrap to local furnituremanufacturers at $85 each.At inspection, 2,000 handles were rejected as scrap. These units had reached the following degree of completion:Transfer from Moulding 100%Direct material added 40%Conversion costs 20%Work-in-progress at the end of January was 4,000 handles and had reached the following degree of completion:Transfer from Moulding 100%Direct…
Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.]The first production department of Stone Incorporated reports the following for April. Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 82,000 70% 30% Units started this period 432,000 Completed and transferred out 410,000 Ending work in process inventory 104,000 85% 35% Exercise 3-11A (Algo) FIFO: Costs assigned to output LO C2 The production department had the cost information below. Beginning work in process inventory Direct materials $ 206,850 Conversion 35,490 $ 242,340 Costs added this period Direct materials 1,512,630 Conversion 991,230 2,503,860 Total costs to account for $ 2,746,200 (a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the…