Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 18, Problem 18.2APR
1.
To determine
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Equivalents units for production
The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.
Production cost report
A production cost report is a comprehensive report prepared for each department separately at the end of a particular period, which represents the physical flow and cost flow of product for the concerned department.
To Determine: The equivalents units for production of direct materials and conversion costs for the month of January for Company FMC.
2.
To determine
Increase or decrease in the cost per equivalent per unit for direct materials and conversion cost between June and March when, work in process inventory as on March 1 includes $5,700 of direct materials.
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Fresh Mountain Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at March 31, 2016:
INSTRUCTIONS
Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department.
ANSWER ↓
Check Figure: Conversion cost per equivalent unit, $0.80
Assuming that the March 1 work in process inventory includes $5,700 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March.
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Attachment
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Chapter 18 Solutions
Financial & Managerial Accounting
Ch. 18 - Which type of cost system, process or job order,...Ch. 18 - In job order cost accounting, the three elements...Ch. 18 - In a job order cost system, direct labor and...Ch. 18 - Why is the cost per equivalent unit often...Ch. 18 - What is the purpose for determining the cost per...Ch. 18 - Rameriz Company is a process manufacturer with two...Ch. 18 - Prob. 7DQCh. 18 - Prob. 8DQCh. 18 - Prob. 9DQCh. 18 - How docs lean manufacturing differ from the...
Ch. 18 - Prob. 18.1APECh. 18 - Job order versus process costing Which of the...Ch. 18 - Units to be assigned costs Lilac Skin Care Company...Ch. 18 - Prob. 18.2BPECh. 18 - Prob. 18.3APECh. 18 - Prob. 18.3BPECh. 18 - Prob. 18.4APECh. 18 - Prob. 18.4BPECh. 18 - Prob. 18.5APECh. 18 - Prob. 18.5BPECh. 18 - Cost of units transferred out and ending work in...Ch. 18 - Prob. 18.6BPECh. 18 - Prob. 18.7APECh. 18 - Process cost journal entries The cost of materials...Ch. 18 - Prob. 18.8APECh. 18 - Using process costs for decision making The costs...Ch. 18 - Entries for materials cost flows in a process cost...Ch. 18 - Flowchart of accounts related to service and...Ch. 18 - Entries for flow of factory costs for process cost...Ch. 18 - Factory overhead rate, entry for applying factory...Ch. 18 - Prob. 18.5EXCh. 18 - Equivalent units of production Units of production...Ch. 18 - Equivalent units of production The following...Ch. 18 - Costs per equivalent unit A. Based upon the data...Ch. 18 - Prob. 18.9EXCh. 18 - Costs per equivalent unit Georgia Products Inc....Ch. 18 - Equivalent units of production and related costs...Ch. 18 - Cost of units completed and in process A. Based on...Ch. 18 - Errors in equivalent unit computation Napco...Ch. 18 - Cost per equivalent unit The following information...Ch. 18 - Costs per equivalent unit and production costs...Ch. 18 - Cost of production report The debits to Work in...Ch. 18 - Cost of production report The Cutting Department...Ch. 18 - Cost of production and journal entries AccuBlade...Ch. 18 - Cost of production and journal entries Lighthouse...Ch. 18 - Prob. 18.20EXCh. 18 - Analyzing process cost elements across product...Ch. 18 - Prob. 18.22EXCh. 18 - Lean manufacturing The following are some quotes...Ch. 18 - Equivalent units of production: average cost...Ch. 18 - Equivalent units of production: average cost...Ch. 18 - Equivalent units of production: average cost...Ch. 18 - Equivalent units of production and related costs...Ch. 18 - Cost per equivalent unit: average cost method The...Ch. 18 - Cost of production report: average cost method The...Ch. 18 - Prob. 18.30EXCh. 18 - Prob. 18.1APRCh. 18 - Prob. 18.2APRCh. 18 - Equivalent units and related costs; cost of...Ch. 18 - Work in process account data for two months; cost...Ch. 18 - Cost of production report: average cost method...Ch. 18 - Entries for process cost system Preston Grover...Ch. 18 - Cost of production report Bavarian Chocolate...Ch. 18 - Equivalent units and related costs; cost of...Ch. 18 - Prob. 18.4BPRCh. 18 - Prob. 18.5BPRCh. 18 - Prob. 18.1CPCh. 18 - Accounting for materials costs In papermaking...Ch. 18 - Prob. 18.3CPCh. 18 - Prob. 18.4CP
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