Question 2Balkan Bhd, manufatures a caulking compound that goes through three processing stage priorto completion. Information on work in the first department, Cooking Department, is givenbelow for May:Production data:Pounds in process, May 1;(materials 100% complete; conversion 80% complete)10,000Pounds started into production during May100,000Pounds in process, May 31;(materials 60% complete; conversion 20% complete)15,000Cost data:Work in process inventory, May 1:Materials costRM1,500RM7,200Conversion costCost added during May:Materials costConversion costRM154,500RM90,800You need to prepare the cost reconciliation report for this process costing, but you are not surewhich method is the most suitable method to be implemented in the company. You need toanalyse which of these methods, either weighted average costing method or first in first outcosting method give higher cost of the finished goods and explain the differences between thetwo costing methods. The report must also include a physical flow schedule and an equivalent

Weighted Average Cost method:- It is a method in which total inventory cost get divided by the total…

Answered: Question 2 Balkan Bhd, manufatures a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Question 2 Balkan Bhd, manufatures a caulking compound that goes through three processing stage prior to completion. Information on work in the first department, Cooking Department, is given below for May: Production data: Pounds in process, May 1; 10,000 (materials 100% complete; conversion 80% complete) Pounds started into production during May 100,000 Pounds in process, May 31; 15,000 (materials 60% complete; conversion 20% complete) Cost data: Work in process inventory, May 1: Materials cost…
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…
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 # 4Elmo has the following information for the month of October, its first month of operations Work in Process October 1 0 Units completed & transferred out in October 120,000 Work in process October 30 32,000 100% completed for materials 80% completed for conversion costs Costs added in October Materials $145,900 Direct Labor $96,000 Overhead $108,000 what is meant by the term equivalent full units
Problem 7. Hua Corp. manufactures hats. All material is placed in process at the beginning of the period in Department A and the process and the conversion costs are added evenly throughout the process. Upon completion the goods are immediately transferred to Department B. Department A -Month of April 20xx. Status: -Work in process 3/31/xx conversion Units completed at a cost of $300,000 20,000 ($250,000 material and $50,000 conversion) -Units started during April 50,000 -Units completed during April 30,000 -Work in process April 30th were 50% 40,000 Completed for conversion -Direct material cost added during April $450,000 -Conversion cost added during April $100,000 Required: Prepare the 5 step production cost report
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…
Question 3: Process Costing (FIFO) Daytona Incorporated uses the first-in, first-out method in its process costing system. The following data is on the operations of the company’s first processing department for a recent month. Work in process, beginning: Units in process 700 Percent complete with respect to materials 60% Percent complete with respect to conversion 10% Costs in the beginning inventory: Materials cost $ 555 Conversion cost $ 2,123 Units started into production during the month 21,000 Units completed and transferred out 21,000 Costs added to production during the month: Materials cost $ 48,461 Conversion cost $ 559,062 Work in process, ending: Units in process 700 Percent complete with respect to materials 70% Percent complete with respect to conversion 70% Required: Using the first-in, first-out method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. (Round…
Question 3: Process Costing (FIFO) Daytona Incorporated uses the first-in, first-out method in its process costing system. The following data is on the operations of the company’s first processing department for a recent month. Work in process, beginning: Units in process 700 Percent complete with respect to materials 60% Percent complete with respect to conversion 10% Costs in the beginning inventory: Materials cost $ 555 Conversion cost $ 2,123 Units started into production during the month 21,000 Units completed and transferred out 21,000 Costs added to production during the month: Materials cost $ 48,461 Conversion cost $ 559,062 Work in process, ending: Units in process 700 Percent complete with respect to materials 70% Percent complete with respect to conversion 70% Required: Using the first-in, first-out method: A) Determine the equivalent units of production for materials and conversion costs. B) Determine the cost per equivalent unit for materials and conversion costs. (Round…
Question 3: Process Costing (FIFO) Daytona Incorporated uses the first-in, first-out method in its process costing system. The following data is on the operations of the company’s first processing department for a recent month. Work in process, beginning: Units in process 700 Percent complete with respect to materials 60% Percent complete with respect to conversion 10% Costs in the beginning inventory: Materials cost $ 555 Conversion cost $ 2,123 Units started into production during the month 21,000 Units completed and transferred out 21,000 Costs added to production during the month: Materials cost $ 48,461 Conversion cost $ 559,062 Work in process, ending: Units in process 700 Percent complete with respect to materials 70% Percent complete with respect to conversion 70% Required: Using the first-in, first-out method: a. Determine the equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for materials and conversion costs. (Round…
Items 3 – 6 Cena Company employs FIFO process costing system concerning its only product which undergoes production in assembly department and finishing department. The following data for the year ended December 31, 2020 are provided:ASSEMBLY DEPARTMENTUnits CostJanuary 1, 2020 100,000 units – 40% completed as to conversion costDM – P3MDL – P5MFOH – P2MDecember 31, 2020 150,000 units – 80% completed as to conversion costs?Units started during the year 400,000 unitsDM cost added during 2020 – P12MDL cost added during 2020 – P15MFOH cost added during 2020 – P13MFINISHING DEPARTMENTJanuary 1, 2020 50,000 units – 70% incomplete as to conversion costTransferred In – P10MDM – P6MDL – P1MFOH – P3MDecember 31, 2020 30,000 units – 10% incomplete as to conversion costs?Units started during the year ?DM cost added during 2020 – P30MDL cost added during 2020 – P40MFOH cost added during 2020 – P10MAdditional Information:• It is the company policy to apply direct labor and factory overhead uniformly…
ANSWER IN 20 MINUTES Sunstar Manufacturing Company produces special kitchen utensils using the JIT system. Transactions for the current period are as follow:(1) Raw materials purchased, P1,590,000(2) Direct labor costs of P2,500,000 were incurred.(3) Actual overhead costs of P3,500,000 were incurred.(4) Conversion costs are directly charged to cost of sales.(5) Finished goods, end amounted to P420,000 of which P200,000 is materials.(6) Finished goods, beg amounted to P600,000 of which P350,000 is materials(7) RIPI, beginning P850,000, of which materials is P600,000.(8) RIPI, ending P750,000, of which materials is P500,000. The cost of sales for the period amounted to:
10. Beginning work in progress in the assembly department of a company was 3,000 units, 50% completed. During the year, a total of 20,000 units were completed and delivered to customers. Ending work in progress was 5,000 units, with 80% completed with respect to conversion. What are the equivalent units for conversion, assuming the weighted-average method is used? a) 22,500b) 23,500c) 24,000d) 25,000

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