Required:Compute the amount of overhead cost applied to each product during the year.PROBLEM 4-17 Comprehensive Process Costing Problem - Weighted -AverageMethod (LO1, LO2, L03, L04, LO5)Techno Co. produces a special kind of tool that is widely used by construction. The toolis produced in two processes: bending and drilling. Raw materials are introduced atvarious points in the Bending Department; labor and overhead costs are incurred evenlythrough the bending operation. The bent output is then transferred to the DrillingDepartment.The following incomplete Work in Process account has been provided for theBending Department for May:Work in Process - Bending DepartmentMay 1 inventory (12,000 units; materials 80%complete; labor and overhead 60%complete)May costs dded:Raw materials (270,000 units)Direct laborOverheadMay 31 inventory (9,000; materials90% complete; laborand overhead 60% complete)45,369394,210638,144493,584Completed and transferredTo drilling (2 Units)The May 1 work in process inventory in the Bending Department consists of thefollowing cost elements: raw materials, $13,385; direct labor, $18,880; and overhead,$13,104. Costs incurred during May in the Drilling Department were: materials used,$100,800; direct labor, $250,600; and overhead cost applied to production, $189,000.The company accounts for units and costs using the weighted average method.Required:1. Prepare journal entries to record the costs incurred in both the BendingDepartment and the Drilling Department during May. Key your entries to theitems (a) through (g) below.a. Raw materials were issued for use in production.b. Direct labor costs were incurred.c. Manufacturing overhead costs for the entire factory were incurred,$685,000. (Credit Accounts Payable.)d. Manufacturing overhead cost was applied to production using apredetermined overhead rate.e. Units that were complete as to processing in the Bending Department weretransferred to eh Drilling Department, $1,536,990.

Name: Required:Compute the amount of overhead cost applied to each product
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Description: Required:Compute the amount of overhead cost applied to each product during the year.PROBLEM 4-17 Comprehensive Process Costing Problem - Weighted -AverageMethod (LO1, LO2, L03, L04, LO5)Techno Co. produces a special kind of tool that is widely used

Techno co. produces the tool through two process - bending and drilling. Process costing is the…

Business

Accounting

Required: 1. Prepare journal entries to record the costs incurred in both the Bending Department and the Drilling Department during May. Key your entries to the items (a) through (g) below. a. Raw materials were issued for use in production. b. Direct labor costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred, $685,000. (Credit Accounts Payable.) d. Manufacturing overhead cost was applied to production using a predetermined overhead rate. e. Units that were complete as to processing in the Bending Department were transferred to eh Drilling Department, $1,536,990.

Required: 1. Prepare journal entries to record the costs incurred in both the Bending Department and the Drilling Department during May. Key your entries to the items (a) through (g) below. a. Raw materials were issued for use in production. b. Direct labor costs were incurred. c. Manufacturing overhead costs for the entire factory were incurred, $685,000. (Credit Accounts Payable.) d. Manufacturing overhead cost was applied to production using a predetermined overhead rate. e. Units that were complete as to processing in the Bending Department were transferred to eh Drilling Department, $1,536,990.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...

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Use the following information for Problems 6-62 and 6-63: Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtained for the assembly department for June: a. WIP, June 1, had 24,000 units (60% completed) and the following costs: b. During June, 70,000 units were completed and transferred to the finishing department, and the following costs were added to production: c. On June 30, there were 10,000 partially completed units in process. These units were 70% complete. 6-63 (Appendix 6A) First-In, First-Out Method; Single-Department Analysis; One Cost Category Refer to the information for Millie Company above. Required: Prepare a production report for the assembly department for June using the FIFO method of costing. The report should disclose the physical flow of units, equivalent units, and unit costs and should track the disposition of manufacturing costs. (Note: Carry the unit cost computation to four decimal places.)
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A company manufactures a liquid product called Crystal. The basic ingredients are put into process in Department 1. In Department 2, other materials are added that increase the number of units being processed by 50%. The factory has only two departments. Calculate the following for each department: (a) unit cost for the month for materials, labor, and factory overhead, (b) cost of the units transferred, and (c) cost of the ending work in process.
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For E2-17, prepare any journal entries that would have been different if the only trigger points had been the purchase of materials and the sale of finished goods. 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.)
Lampierre makes brass and gold frames. The company computed this information to decide whether to switch from the traditional allocation method to ABC: The estimated overhead for the material cost pool is estimated as $12,500, and the estimate for the machine setup pool is $35,000. Calculate the allocation rate per unit of brass and per unit of gold using: A. The traditional allocation method B. The activity-based costing method
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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.