The Idol Company makes a water-treatment chemical in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Idol uses the weighted-average method of process costing. The following information for July 2020 is available: Equivalent Units Direct materials Conversion 7,000 Physical Units 3/8 Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 •Degree of completion: Direct materials, 100%; conversion cost, 70% "Degree of completion: Direct materials, 100%; conversion cost, 50 % 10,000 10,000 40,000 34,000 16,000 16,000 8,000 Total Cost for July 2020 Work in process, beginning Direct materials P60,000 Conversion costs Z0.000 130,000 Direct materials added during July Conversion cost added during July 280,000 371.000

The Idol Company makes a water-treatment chemical in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Idol uses the weighted-average method of process costing. The following information for July 2020 is available: Equivalent Units Direct materials Conversion 7,000 Physical Units 3/8 Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 •Degree of completion: Direct materials, 100%; conversion cost, 70% "Degree of completion: Direct materials, 100%; conversion cost, 50 % 10,000 10,000 40,000 34,000 16,000 16,000 8,000 Total Cost for July 2020 Work in process, beginning Direct materials P60,000 Conversion costs Z0.000 130,000 Direct materials added during July Conversion cost added during July 280,000 371.000

Name: The Idol Company makes a water-treatment chemical in a single process
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Description: The Idol Company makes a water-treatment chemical in a single processing department. Direct materialsare added at the start of the process. Conversion costs are added evenly during the process. Idol uses theweighted-average method of process costing

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...

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During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner: All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had 120 of raw materials and 180 of conversion costs incurred. Materials added during December were 540, and conversion costs of 1,484 were incurred. Krause uses the first-in, first-out (FIFO) process cost method. The equivalent units of production used to compute conversion costs for December were: a. 110 units. b. 104 units. c. 100 units. d. 92 units.
The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.
Softkin Company manufactures sun protection 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. Required: Prepare a production report for the Mixing Department for the current year.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
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.
Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
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