Question 4: The motor cars company manufactures a product that is processed in two departmentsDepartment A and Department B. In Department A, materials are added at the beginning of the processconversion costs are incurred uniformly throughout the process. As work is completed, it is transferredout. The following table summarizes the production activity and costs for November:Department ABeginning inventories:Physical units5,000Costs:Transferred inDirect materials$ 10,000$ 6,900Conversion costsCurrent production:Units started25,000Units transferred out28,000Costs:Transferred inDirect materialsConversion costsPercentage completion:Beginning inventoryEnding inventory$57,800$95,22040%80%Required :1. Calculate the Department's A equivalent units of production for materials and conversionin July using FIFO method.2. Summarize total costs to account for and assign total costs to units completed andtransferred out, and to units in ending work in process.

The equivalent units are calculated on the basis of the percentage work completed during the period.…

Question 4: The motor cars company manufactures a product that is processed in two departments Department A and Department B. In Department A, materials are added at the beginning of the process conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for November: Department A Beginning inventories: Physical units 5,000 Costs: Transferred in Direct materials Conversion costs $ 10,000 $ 6,900 Current production: Units started 25,000 28,000 Units transferred out Costs: Transferred in Direct materials $57,800 $95,220 Conversion costs Percentage completion: Beginning inventory Ending inventory 40% 80% Required : 1. Calculate the Department's A 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: The motor cars company manufactures a product that is processed in two departments Department A and Department B. In Department A, materials are added at the beginning of the process conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for November: Department A Beginning inventories: Physical units 5,000 Costs: Transferred in Direct materials Conversion costs $ 10,000 $ 6,900 Current production: Units started 25,000 28,000 Units transferred out Costs: Transferred in Direct materials $57,800 $95,220 Conversion costs Percentage completion: Beginning inventory Ending inventory 40% 80% Required : 1. Calculate the Department's A 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 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...

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Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.
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Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
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
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Seacrest Company uses a process-costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added uniformly in Department A. The following summarizes the production activity and costs for November: Required: 1. Using the weighted average method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs (Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferred out, and (e) a cost reconciliation. 2. CONCEPTUAL CONNECTION Prepare journal entries that show the flow of manufacturing costs for Department A. Use a conversion cost control account for conversion costs. Many firms are now combining direct labor and overhead costs into one category. They are not tracking direct labor separately. Offer some reasons for this practice.
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Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000.
Equivalent units and related costs; cost of production report; entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in ProcessFilling was as follows on January 1: The following costs were charged to Work in ProcessFilling during January: During January, 53,000 units of specialty chemicals were completed. Work in ProcessFilling Department on January 31 was 2,700 units, 30% completed. Instructions 1. Prepare a cost of production report for the Filling Department for January. 2. Journalize the entries for costs transferred from Reaction to Filling and the costs transferred from Filling to Finished Goods. 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. 4. Discuss the uses of the cost of production report and the results of part (3).
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