Waterway Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in Process-Mixing $0, Work in Process-Packaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 units were started into production in the Mixing Department and the following transactions were completed. 1 2. 3. 4. 5. 6. 7. 8. 9. Purchased $304,800 of raw materials on account. Issued raw materials for production: Mixing $211,800 and Packaging $49,900. Incurred labor costs of $288.100. Used factory labor: Mixing $187,000 and Packaging $101.100. Incurred $917,100 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in Packaging. Transferred 46,700 units from Mixing to Packaging at a cost of $982,800. No Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319,000. Sold goods costing $1,645,000 for $2.505,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Waterway Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in Process-Mixing $0, Work in Process-Packaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 units were started into production in the Mixing Department and the following transactions were completed. 1 2. 3. 4. 5. 6. 7. 8. 9. Purchased $304,800 of raw materials on account. Issued raw materials for production: Mixing $211,800 and Packaging $49,900. Incurred labor costs of $288.100. Used factory labor: Mixing $187,000 and Packaging $101.100. Incurred $917,100 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in Packaging. Transferred 46,700 units from Mixing to Packaging at a cost of $982,800. No Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319,000. Sold goods costing $1,645,000 for $2.505,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Waterway Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All
materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in
Process-Mixing $0, Work in Process-Packaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging
consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During
October, 52,700 units were started into production in the Mixing Department and the following transactions were completed.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purchased $304,800 of raw materials on account.
Issued raw materials for production: Mixing $211,800 and Packaging $49,900.
Incurred labor costs of $288.100.
Used factory labor: Mixing $187,000 and Packaging $101,100,
Incurred $917,100 of manufacturing overhead on account.
Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in
Packaging.
Transferred 46,700 units from Mixing to Packaging at a cost of $982,800.
Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319.000.
Sold goods costing $1,645,000 for $2.505,000 on account.
Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
Debit
No. Account Titles and Explanation
Credit
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