Please help me to solve this problem 34The cost transferred into Finished Goods Inventory is the cost of the lifts transferredout of the Testing Department. Sea Worthy uses weighted-average process costing.Requirements1. Prepare a production cost report for the Testing Department.2. What is the cost per unit for lifts completed and transferred out to Finished GoodsInventory? Why would management be interested in this cost?Equivalent UnitsTransferred to next departmentEnding WIP Units Partially CompletedMaterial, ConversionEquivalent UnitsCost per Equivalent UnitBeginning WIPCosts added during periodTotal CostEquivlent UnitsCost per Equivalent UnitCost per Unit $+$=Total Cost of Units Transferred *$=Cost of Ending WIP Materials *$===========>Cost of Ending WIP Conversion *$===========>Ending WIPCost ReconciliationCosts to be accounted for:Beginning WIPCosts added during periodTotal CostsEnding WIPCost of Units Transferred to next departmentTotal CostsDateAccountJournalDebitMaterialsMaterialsCreditConversionConversion P18-43B Preparing a production cost report, second department withbeginning WIP; decision makingSea Worthy uses three processes to manufacture lifts for personal watercrafts: forming alift's parts from galvanized steel, assembling the lift, and testing the completed lift. Thelifts are transferred to finished goods before shipment to marinas across the country.Sea Worthy's Testing Department requires no direct materials. Conversion costsare incurred evenly throughout the testing process. Other information follows forOctober 2018:UNITSBeginning Work-in-Process InventoryTransferred in from Assembling Department during the periodCompleted during the periodEnding Work-in-Process Inventory (40% complete for conver-sion work)COSTSBeginning Work-in-Process Inventory (transferred in costs,$93,400; conversion costs, $18,100)Transferred in from the Assembly Department during theperiodConversion costs added during the period2,300 units6,800 units4,100 units5,000 units$ 111,500671,00049,000

Cost Per Equivalent Unit- Process pricing includes a stage called cost per equivalent unit. An…

Sea Worthy uses three processes to manufacture lifts for personal watercrafts: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to finished goods before shipment to marinas across the country. Sea Worthy's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for October 2018: UNITS Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period 2,300 units 6,800 units

Sea Worthy uses three processes to manufacture lifts for personal watercrafts: forming a lift's parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to finished goods before shipment to marinas across the country. Sea Worthy's Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for October 2018: UNITS Beginning Work-in-Process Inventory Transferred in from Assembling Department during the period 2,300 units 6,800 units

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 18E: For E2-17, prepare any journal entries that would have been different if the only trigger points had...

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Preparing production cost report, second department with beginning WIP; decision making Ocean Worthy uses three processes to manufacture lifts for personal watercraft: forming a lift’s parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country. Ocean Worthy’s Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August: The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. Ocean Worthy uses Weighted-average process costing. Requirements Prepare a production cost report for the Testing Department. What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost?
Ole Company manufactures two products, Product A and Product B. Currently, machine hours are used to allocate the overhead costs to the two products. Ole Company is considering adopting an activity-based costing system. If so, overhead costs will be traced to the following activities: Activities Machining Quality Control Material Moves Activity cost pools $300,000 $200,000 $400,000 Cost Drivers Machine Hours Number of inspections Number of moves Product A 30,000 400 2,000 Product B 20,000 600 6,000 (a) Calculate the total overhead cost assigned to Product A under the current system. (b) Calculate the total overhead cost for Product A if the company implements activity-based costing system. (c) Briefly explain which costing method gives a more accurate picture of the costs. (d) Suppose you are the management accountant in a university. List any three (3)activities commonly carried out in universities and identify an appropriate cost driver for each activity.
company manufactures a certain part for use in its assembly operation. cost per unit for 5,000 units of part is a total of P26.00 from the following: direct labor is P12.00; direct materials is P2.00; fixed factory overhead is P7.00 and variable factory overhead is P5.00. Company B offered company A 5,000 units for P27.00 per unit. If company A accepts some of its facilities presently used to manufacture the part could be used to help with the manufacture of part, thus saving P40,000.00 in relevant cost in its manufacture and eliminating P3.00 per unit of the fixed factory overhead. find the savings if any from buying instead of making.
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Arctic Air Inc. manufactures cooling units for commercial buildings. Activity-base usage and unit volume information for the three customers is as follows: Gough Industries Breen Inc. The Martin Group Total Number of service requests 65 47 202 314 Number of bids 34 20 45 99 Number of customer design changes 41 27 156 224 Unit volume 21 15 6 42
Part A What type of industry is likely to use a process cost system? List examples Why is it important to establish appropriate cost pools? PART B An electrical component manufacturer has selected direct labour hours as an application base. They plan to sell 35,000 units of copper tubing although the factory has the capacity to produce 40,000 units under normal circumstances. Overheads are estimated as follows: • Indirect materials and supplies $96,200 • Repairs and maintenance $24,100 • Plant service contracts $37,000 • Refurbishing cost $89,100 • Machinery depreciation $185,000 • Factory insurance $18,200 • Property taxes $4,500 • Heat, light and power $51,700 • Miscellaneous factory overhead $6,000 • indirect Labour $120,000.00 • Materials $80,000.00 • Transportation $25,000.00 • Rent $40,000.00 • Security Cost $15,000.00 All overhead costs except depreciation, property taxes and miscellaneous factory overhead are expected to increase by 10% during the year. Depreciation should…
how can i resolve this problem? Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 90 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to conversion costs for July?
Greystone Corporation manufactures windows for the home building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company’s best selling product is a three-by-four-foot, double-paned operable-windows. The standard cost of the window is detailed below: Frame Division Glass Division Direct Material P15 P30 Direct Labor 20 15 Variable overhead 30 30 Total 65 75 *Not including the transfer price for the frame. The Frame Division can also sell frames directly to custom home builders, who install the glass and hardware at P80. The markets for both frames and finished…
Johnstone Company manufactures two products, Board 12 and Case 165. Johnstone's overhead costs consist of setting up machines, $1,600,000; machining, $3,600,000; and inspecting, $1,200,000. Information on the two products is: Board 12 Case 165 Direct labor hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700 Overhead applied to Board 12 using traditional costing using direct labor hours is a.) 2,400,000 b.) 3,072,000 c.) 3,340,000 d.) 3,840,000
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) Question 12 options: $3,266 $9,274 $8,243 $6,595
Larned Recreational builds two models of dune buggies: Sport and Custom. Both models require the same assembly and finishing process and are assembled in the same factory. They differ in the quality and detail of the materials. The following data reflect expected operations for the upcoming year. Sport Custom Total Number of units 3,200 1,800 5,000 Direct materials cost per unit $ 400 $ 1,100 Conversion costs: Direct labor $ 1,832,000 Overhead 2,608,000 Total $ 4,440,000 Required: Larned Recreation uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost per unit of the Sport and Custom models for the upcoming year. The financial team at Larned suggests that a two-stage system be used to compute the product cost of the two models. Their recommendation is to assign direct labor cost based on the number of units and overhead cost based on direct materials cost. Compute the cost per unit of…
The Park Avenue Corporation currently makes a part required in its finished product. The company uses 1,884 units of this part annually. Park Avenue Corp has been approached by a vendor to provide this part for $13.34 each. The following cost information is provided Direct Materials per unit $6.24 Direct Labor per unit $7.30 Variable Factory Overhead per unit $2.50 Fixed Factory Overhead per unit $7.50 How much would Park Avenue Corporation save by having the vendor make the part, instead of making it themselves? Enter your answer rounded to the nearest whole number. Don't enter dollar signs or commas.