CUSTOM COST ACCOUNTING 15E
15th Edition
ISBN: 9781269831338
Author: Horngren
Publisher: PEARSON C
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Chapter 17, Problem 17.23E
Zero beginning inventory, materials introduced in middle of process. Dot and Ken Ice Cream uses a mixing department and a freezing department in producing its ice cream. Its process-costing system in the mixing department has two direct materials cost categories (ice cream mix and flavorings) and one conversion cost pool. The following data pertain to the mixing department for April 2017:
| Work in process, April 1 | 0 |
| Started in April | 10,000 gallons |
| Completed and transferred to freezing | 8,500 gallons |
| Costs: | |
| Ice cream mix | $27,000 |
| Flavorings | $ 4,080 |
| Conversion costs | $53,700 |
The ice cream mix is introduced at the start of operations in the mixing department, and the flavorings are added when the product is 40% completed in the mixing department. Conversion costs are added evenly during the process. The ending work in process in the mixing department is 30% complete.
- 1. Compute the equivalent units in the mixing department for April 2017 for each cost category.
- 2. Compute (a) the cost of goods completed and transferred to the freezing department during April and (b) the cost of work in process as of April 30, 2017.
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Zero beginning inventory, materials introduced in middle of process. Dot and Ken Ice Cream uses a mixing department and a freezing department in producing its ice cream. Its process-costing system in the mixing department has two direct materials cost categories (ice cream mix and avorings) and one conversion cost pool. The following data pertain to the mixing department for April 2017:
not GRADED
Product Cost Report—Weighted Average Method
Reston Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2016 were as follows:
Cost of beginning inventory
Direct material
$9,800
Conversion costs
16,590
Costs added in Department 1:
Direct material
$295,400
Direct labor
298,550
Manufacturing overhead
203,130
797,080
Department 1 handled the following units during May:
Units in process, May 1, 2016
2,000
Units started in Department 1
40,000
Units transferred to Department 2
39,000
Units in process, May 31, 2016
3,000
On 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 method for process costing.
Required
Prepare the product cost report for Department 1 for May.…
Production Report, No Beginning Inventory
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:
Work in process, January 1
—
Gallons started
350,000
Gallons transferred out
294,000
Direct materials cost
$700,000
Direct labor cost
$1,490,720
Overhead applied
$2,236,080
Direct materials are added at the beginning of the process. Ending inventory is 80 percent complete with respect to direct labor and overhead.
Required:
Prepare a production report for the Mixing Department for the current year. If an amount is zero, enter "0".
Softkin Company
Mixing Department
Production Report for Current Year
Unit Information
Units to account for:
Total units to account for
Units accounted for:
Equivalent Units
Physical Flow
Direct Materials
Conversion Costs
Total units accounted…
Chapter 17 Solutions
CUSTOM COST ACCOUNTING 15E
Ch. 17 - Give three examples of industries that use...Ch. 17 - In process costing, why are costs often divided...Ch. 17 - Explain equivalent units. Why are equivalent-unit...Ch. 17 - What problems might arise in estimating the degree...Ch. 17 - Name the five steps in process costing when...Ch. 17 - Name the three inventory methods commonly...Ch. 17 - Describe the distinctive characteristic of...Ch. 17 - Describe the distinctive characteristic of FIFO...Ch. 17 - Prob. 17.9QCh. 17 - Identify a major advantage of the FIFO method for...
Ch. 17 - Identify the main difference between journal...Ch. 17 - The standard-costing method is particularly...Ch. 17 - Why should the accountant distinguish between...Ch. 17 - Transferred-in costs are those costs incurred in...Ch. 17 - Theres no reason for me to get excited about the...Ch. 17 - Assuming beginning work in process is zero, the...Ch. 17 - The following information concerns Westheimer...Ch. 17 - Sepulveda Corporation uses a process costing...Ch. 17 - Penn Manufacturing Corporation uses a...Ch. 17 - Kimberly Manufacturing uses a process-costing...Ch. 17 - Equivalent units, zero beginning inventory....Ch. 17 - Journal entries (continuation of 17-21). Refer to...Ch. 17 - Zero beginning inventory, materials introduced in...Ch. 17 - Weighted-average method, equivalent units. The...Ch. 17 - Weighted-average method, assigning costs...Ch. 17 - FIFO method, equivalent units. Refer to the...Ch. 17 - FIFO method, assigning costs (continuation of...Ch. 17 - Operation costing. The Carter Furniture Company...Ch. 17 - Weighted-average method, assigning costs....Ch. 17 - FIFO method, assigning costs. 1. Do Exercise 17-29...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Operation costing. Egyptian Spa produces two...Ch. 17 - Standard-costing with beginning and ending work in...Ch. 17 - Equivalent units, comprehensive. Louisville Sports...Ch. 17 - Weighted-average method. Hoffman Company...Ch. 17 - Journal entries (continuation of 17-36). Required...Ch. 17 - FIFO method (continuation of 17-36). 1. Do Problem...Ch. 17 - Transferred-in costs, weighted-average method...Ch. 17 - Transferred-in costs, FIFO method (continuation of...Ch. 17 - Weighted-average method. McKnight Handcraft is a...Ch. 17 - FIFO method (continuation of 17-41). 1. Complete...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Standard costing, journal entries. The Warner...Ch. 17 - Multiple processes or operations, costing. The...Ch. 17 - Benchmarking, ethics. Amanda McNall is the...
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