With the information given how do I calculate the current cost conversion? Support2 DashboardProduct Cost Report-Weighted Average MethodReston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:Cost of beginning inventoryDirect material$14,700Conversion costs24,885Costs added in Department 1Direct material$443,100Direct labor447,825Manufacturing overhead304,695 1.195,620Department 1 handled the following units during May:Units in process, May 12,000Units started in Department 140,000Units transferred to Department 2 39,000Units in process, May 313,000On average, the May 1 units were 30% complete. The May 31 units were 60% complete. Materials are added at the beginning of the process, and conversion costs occur evenly throughout the process in Department 1. Reston uses the weighted average meprocess costing.RequiredPrepare the product cost report for Department 1 for May.Round average cost per equivalent unit to four decimal places. Use rounded answers for subsequent calculations. Round other answers to the nearest whole number.Reston Manufacturing Corporation Department 1Flow of Units and Equivalent Units Calculations, May 2016Equivalent Units% WorkDirect% WorkConversionDoneMaterialsDoneCostsComplete/Transferred39000100 % V39000 v100 % V390003000 v100 96 v300060 % v1800 vEnding Inventory4200040800 VTotal42000Product Cost ReportDirectConversionMaterialsCosts395851470024885 VBeginning Inventory443100 v1338750 xCurrent0 x $457800 vS0 xTotal Costs to Account For42000 v40800 v+ Total Equivalent Units10.9 $1212Average cost / Equivalent unit (round four decimal places)1/2120

Equivalent units of products concept came in to existence when some units are not fully completed at…

Answered: With the information given how do I…

Business

Accounting

With the information given how do I calculate the current cost conversion?

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Activity-Based Costing

Section: Chapter Questions

Problem 18.3TIF: Communication The controller of New Wave Sounds Inc. prepared the following product profitability...

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Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.
Problem 2. Statement of Costs of Goods Manufactured and Income statement. The following information are gathered from the accounting records of Genet Inc. for the current month: Inventory information Beginning balance $ Ending balance $ Raw materials inventory $46,800 $43,600 Work-in-Process inventory $33,400 $35,700 Finished goods inventory $42,500 $31,800 Other information $ Revenue $800,000 Purchase of raw materials $72,100 Indirect materials costs $5,600 Indirect labor costs $20,000 Office staff salaries $28,000 Office equipment depreciation $2,000 Factory machinery maintenance costs $5,000 Environmental compliance costs - factory $1,200 Direct labor - Wages of production line workers $32,000 Sales staff salaries $12,000 Advertising costs $8,000 Miscellaneous manufacturing overhead costs $11,000 Required: a.…
PART 1 G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019.i) Purchased materials on account, $392,000ii) Incurred manufacturing wages of $400,000iii) Requisitioned direct materials and used direct labour in manufacturing Direct Materials Direct LabourJob 551 $70,200 $61,200Job 552 $97,500 $115,600Job 553 $105,300 $78,200Job 554 $117,000 $85,000iv) Issued…
PART 1 G-Force Woodcraft manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. G-Force expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labour costs of $3,150,000 during 2016. At the end of December 2018, G-Force reported work in process inventory (Job 551) of $93,000 The following events occurred during January 2019.i) Purchased materials on account, $392,000ii) Incurred manufacturing wages of $400,000iii) Requisitioned direct materials and used direct labour in manufacturing Direct Materials Direct LabourJob 551 $70,200 $61,200Job 552 $97,500 $115,600Job 553 $105,300 $78,200Job 554 $117,000 $85,000iv) Issued…
Question ii) Huzaifa’s Company produces and sells a single product - cricket bat. Selected costs and operating data relating to the product are given below for the year ended 2017. Opening Inventory 5,000 units, selling price $45, total sales 40,000 units. Variable costs per unit: DM $7, DL $5, MOH $3, selling and admin expense is 40% of Direct labor. Fixed MOH $5 per unit. Total fixed selling and admin expense ratio is 0.875:1 to total fixed manufacturing overhead. The company’s total production is seven times to its opening inventory. Required: ii1.. Compute the unit product cost for Variable Costing and Absorption Costing. ii2. Prepare Variable and Absorption Costing income statement for year ended 2017. ii3. Explain briefly why net operating income differs between variable and absorption costing.
Answer the questions from the information provided.2.1 Use the information given below to prepare the Income Statement for March 2022 according to theabsorption costing method.INFORMATIONThe following information was extracted from the accounting records of Alpha Enterprises for the month ended 31March 2022: Sales 3200 units Selling price per unit R100 Finished products on 01 March 2022 400 units products manufactured during the month 3600 units variable manufacturing costs per unit R26 variable selling and administatrive costs per units sold R12 fixed manufacturing costs R25 200 fixed selling and administractive costs R12 400 Additional informationThe variable manufacturing cost per unit and total manufacturing cost per unit of the finished goods on 01 March2022 was R21.60 and R26.20 respectively. 2.2 Use the information provided below to calculate the following manufacturing variances for March2022. Note: Each answer must state whether the variance is…
Problem 2-9 You have the following information about the activities of ABC Inc. for 2016 Sales 500,000 Factory maintenance 24,000 Indirect labour 19,000 Direct Material purchases 98,000 Factory utilities 17,000 Ending Direct materials 16,000 General and Administrative expense 71,200 Beginning work-in-process inventory 26,000 Beginning finished goods inventory 63,000 Ending work-in-process inventory 34,000 Ending finished goods inventory 44,600 Beginning direct material inventory 13,000 Selling Expenses 67,600 Direct labour 83,000 Factory insurance 9,000 Indirect Materials 7,600 Amortization-Factory 30,000 Required: 1. What was the ending direct material inventory? 2. What was the total manufacturing cost? 3. What was the cost of goods manufactured? 4. What was the cost of goods sold? 5. Based on all the answers above, please calculate the net income for 2016. Cost Indentification Mr. John Black began his pottery manufacturing business serveral years ago. The following costs occurred…
Statement of Cost of Goods Manufactured and Income StatementInformation from the records of the Bridgeview Manufacturing Company for August 2017 follows: Sales $313,000 Selling and administrative expenses 127,500 Purchases of raw materials 43,000 Direct labor 30,000 Manufacturing overhead 53,500 Inventories August 1 August 31 Raw materials $ 6,000 $ 5,000 Work-in-process 12,000 11,000 Finished goods 15,000 17,000 RequiredPrepare a statement of cost of goods manufactured and an income statement for August 2017.Do not use negative signs with any of your answers below. Bridgeview Manufacturing Company Statement of Cost of Goods Manufactured For the Month Ending August 31, 2017 Current manufacturing costs: Cost of materials placed in production: Raw materials, 8/1/17 Answer Purchases Answer Total available Answer Raw materials, 8/31/17 Answer Answer Direct labor Answer…
Practice: The following data are taken from the accounting records of Gregory Mfg. Co.: 2019 2018 Ending inventories: Materials $ 100,000 $80,000 Work in Process $64,000 $56,000 Finished Goods $140,000 $170,000 Manufacturing goods: Direct materials used $657,000 Direct labor costs charged to production $270,000 Manufacturing Overhead $378,000 Show All Calculations: Outline a schedule of cost of goods manufactured for 2019 in good form The company generally prices products adding 20% to the cost of goods sold. Determine the total revenue the company would have generated in 2019.
Answer question: d and e Elite Home Decor manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labor-intensive production process, so it assigns manufacturing overhead based on direct labor costs. Elite expects to incur $2,205,000 of manufacturing overhead costs and estimated direct labor costs of $3,150,000 during 2020. At the end of December 2019, Elite reported work in process inventory (Job 551) of $93,000 The following events occurred during January - March 2020. Purchased materials on account, $392,000 Incurred manufacturing wages of $400,000 Requisitioned direct materials and used direct labor in manufacturing 4. Issued indirect materials to production, $30,000 5.Charged indirect manufacturing wages to production, $60,000 6.Depreciation of production machinery, $85,000 7. Other manufacturing overhead costs incurred on units 551 to 554 amounted to $49,000 8.Allocated overheads to jobs at the predetermined rate 9.…
Problem 1.b.: Computation of Costs of Goods Manufactured (COGM).Akari Inc. provided the following information for its work-in-process inventory account at the end of the current month.Work-in-process Inventory (WIP)Accounts $ Accounts $Beginning balance $19,500 COGM ?Direct materials (DM) $76,200Direct labor (DL) $120,000MOH allocated $72,000Ending Balance $24,300Required: Compute the Costs of Goods Manufactured (COGM) at the end of the current month.Solution: Formula:Beginning WIP+ TMC (total manufacturing costs) for the periodDM usedDL incurredMOH allocatedTMC in WIP- Ending WIP= COGM
4-30 Journal entries, T-accounts, and source documents. Visual Company produces gadgets for thecoveted small appliance market. The following data reflect activity for the year 2017:Costs incurred:Purchases of direct materials (net) on credit $121,000Direct manufacturing labor cost 87,000Indirect labor 54,400Depreciation, factory equipment 53,000Depreciation, office equipment 7,700Maintenance, factory equipment 46,000Miscellaneous factory overhead 9,100Rent, factory building 99,000Advertising expense 97,000Sales commissions 39,000Inventories:January 1, 2017 December 31, 2017Direct materials $ 9,400 $18,000Work in process 6,500 26,000Finished goods 60,000 31,000Visual Co. uses a normal-costing system and allocates overhead to work in process at a rate of $3.10 perdirect manufacturing labor dollar. Indirect materials are insignificant so there is no inventory account forindirect materials.1. Prepare journal entries to record the transactions for 2017 including an entry to close out over-…