QUESTION 1 The manufacturing company TOKYO S.A. produces only one product. The production of the product is completed in two consecutive Departments, namely Department A and Department B. On 1/4/2021, Department B has in work in process 8,000 units. The cost was €34,095 for raw materials and €29,100 for direct labor. In April 2021, 20,000 product units were added to the production (from Department A), for processing for which the cost of raw materials is €133,905 and for direct labor €222,000. Considering the following information: On 30/4/2021, Department B has 13,000 units of product in work in process, processed by 30% for direct labor and manufacturing overheads. All raw materials are added to Department B at the beginning of the production process (i.e., they have a 100% completion rate). The manufacturing overhead is applied to Department B based on direct labor at a rate of 110%. The company uses the weighted-average method to assess its inventories. Requirements Calculate the following: The equivalent units (: Prepare the cost of goods manufactured ( : The cost per equivalent unit /, The total amount of cost for end work in process inventory and units transferred out of Department B-
QUESTION 1 The manufacturing company TOKYO S.A. produces only one product. The production of the product is completed in two consecutive Departments, namely Department A and Department B. On 1/4/2021, Department B has in work in process 8,000 units. The cost was €34,095 for raw materials and €29,100 for direct labor. In April 2021, 20,000 product units were added to the production (from Department A), for processing for which the cost of raw materials is €133,905 and for direct labor €222,000. Considering the following information: On 30/4/2021, Department B has 13,000 units of product in work in process, processed by 30% for direct labor and manufacturing overheads. All raw materials are added to Department B at the beginning of the production process (i.e., they have a 100% completion rate). The manufacturing overhead is applied to Department B based on direct labor at a rate of 110%. The company uses the weighted-average method to assess its inventories. Requirements Calculate the following: The equivalent units (: Prepare the cost of goods manufactured ( : The cost per equivalent unit /, The total amount of cost for end work in process inventory and units transferred out of Department B-
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 10E: Costs per equivalent unit Georgia Products Inc. completed and transferred 89,000 particle board...
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:QUESTION 1
The manufacturing company TOKYO S.A. produces only one product. The production of the product is
completed in two consecutive Departments, namely Department A and Department B.
On 1/4/2021, Department B has in work in process 8,000 units. The cost was €34,095 for raw materials
and €29,100 for direct labor.
In April 2021, 20,000 product units were added to the production (from Department A), for processing for
which the cost of raw materials is €133,905 and for direct labor €222,000.
Considering the following information:
On 30/4/2021, Department B has 13,000 units of product in work in process, processed by 30% for direct
labor and manufacturing overheads.
All raw materials are added to Department B at the beginning of the production process (i.e., they have a
100% completion rate).
The manufacturing overhead is applied to Department B based on direct labor at a rate of 110%.
The company uses the weighted-average method to assess its inventories.
Requirements
Calculate the following:
The equivalent units (:
Prepare the cost of goods manufactured (
The cost per equivalent unit ,
The total amount of cost for end work in process inventory and units transferred out of
Department B :
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning