Question 4 : a company, manufactures educational toys using process costing system. Plastic is molded into the appropriate shapes in the Molding Department. Molded components are transferred to the Assembly Department where the toys are assembled. Molding Beginning inventory: Units Prior department Materials 500 $2,500.00 $1,050.00 Conversion costs Started or transferred in: Units 1,000 February costs: Prior department Materials $5,000.00 Conversion costs $7,660.00 200 Ending inventory in units Beginning and ending work in process for the department showed the following degee of completion: Molding Degree of completion: Beginning work in process, materials Beginning work in process, conversion costs 30 Ending work in process, materials Ending work in process, conversion costs 100% 100 20 Required : 1. Calculate the Modeling Department's equivalent units of production for materials and conversion in July using FIFO method. 2.Summarize total costs to account for and assign total costs to units completed and transferred out. and to units in ending work in process.

Question 4 : a company, manufactures educational toys using process costing system. Plastic is molded into the appropriate shapes in the Molding Department. Molded components are transferred to the Assembly Department where the toys are assembled. Molding Beginning inventory: Units Prior department Materials 500 $2,500.00 $1,050.00 Conversion costs Started or transferred in: Units 1,000 February costs: Prior department Materials $5,000.00 Conversion costs $7,660.00 200 Ending inventory in units Beginning and ending work in process for the department showed the following degee of completion: Molding Degree of completion: Beginning work in process, materials Beginning work in process, conversion costs 30 Ending work in process, materials Ending work in process, conversion costs 100% 100 20 Required : 1. Calculate the Modeling Department's equivalent units of production for materials and conversion in July using FIFO method. 2.Summarize total costs to account for and assign total costs to units completed and transferred out. and to units in ending work in process.

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 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...

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Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Brief Exercises 4-27 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Quillen Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) 2. Allocate the support department costs to the producing departments by using the direct method.
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
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
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Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
Cost Accounting_ADM3346 CAPSTONE EXERCISE Chapter 18 Toddler Toys produces toy construction vehicles for young children. Plastic pieces are moulded in the plastics department. The pieces are transferred to the assembly department, where direct materials are added after some assembly has been done. For example, plastic pieces of road graders are put together, then the blades and wheel assemblies are added, and finally some details are painted on the sides and back. The direct materials are added in the assembly department when the process is 75% complete. Beginning inventory 80% complete and ending inventory is 25% complete. Following are data for August: Beginning inventory costs for the assembly department: Transferred in $4,000 Direct materials 2,000 Conversion costs 1,600 Total cost $7,600 Costs incurred in the assembly department during current period: Transferred in $36,000 Direct materials 18,000 Conversion costs 16,000 Total cost $70,000 Physical units in the assembly…
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Answer the following questions (5) and (6) using the information below: JJ Plastic Co, manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February are: Work in process, beginning inventory, 40% converted 200 units Units started during February 800 units Work in process, ending inventory 100 units Costs for Department A for February are: Work in process, beginning inventory: Direct materials $150,000 Conversion costs…
3 2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow: 5 ints 00:40:40 Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Activity Cost Pool Purchase orders Rework requests Product testing Machine related Estimated Overhead Cost $ 170,000 374,400 350,000 1,150,000 $2,044,400 Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. Activity Rate per order per request per test per MH Deluxe 1,000 600 5,000 18,000 Activity Regular 1,500 1,200 12,500 28,000 Total 2,500 1,800 17,500 46,000 3. Assume that actual activity is as expected for the year. Using activity-based costing, do the following: a. Determine the…
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