Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
13th Edition
ISBN: 9781305781429
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Arabica Highland 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 July 31:
Attachment
Instructions1. Prepare a cost of production report and identify the missing amounts for Work in Process—Roasting Department.2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July.
Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31:AttachmentInstructionsPrepare a cost of production report, using the average cost method, and identify the missing amounts for Work in Process—Roasting Department.
Cost of Production Report
Hana 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 July 31:
ACCOUNT Work in Process—Roasting Department
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Credit
July
1
Bal., 4,800 units, 1/5 completed
10752
31
Direct materials, 216000 units
475200
485952
31
Direct labor
104100
590052
31
Factory overhead
26076
616128
31
Goods transferred, 216000 units
?
31
Bal., ? units, 2/5 completed
?
Required:
1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.
Hana Coffee Company
Cost of…
Chapter 18 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Sunrise Coffee Company roasts and packs coffee beans. The process begins in the Roasting Department. From the Roasting Department, the coffee beans are transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at December 31, 2014arrow_forwardFresh 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. I'm having trouble answering parts of the report. The parts that have the red * astrick are where I am needing helparrow_forwardCost of Production Report Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 5,500 units, 2/5 completed 13,090 31 Direct materials, 247,500 units 544,500 557,590 31 Direct labor 119,900 677,490 31 Factory overhead 29,980 707,470 31 Goods transferred, 248,000 units ? 31 Bal., ? units, 4/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places. Hana Coffee…arrow_forward
- Cost of Production Report Hana 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 July 31: Please don't give images in Solutions thankuarrow_forwardCost of Production Report Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 5,300 units, 1/5 completed 6,254 31 Direct materials, 238,500 units 286,200 292,454 31 Direct labor 57,600 350,054 31 Factory overhead 14,358 364,412 31 Goods transferred, 239,000 units ? 31 Bal., ? units, 2/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.arrow_forwardCost of Production Report Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 4,100 units, 3/5 completed 6,314 31 Direct materials, 184,500 units 258,300 264,614 31 Direct labor 44,200 308,814 31 Factory overhead 10,994 319,808 31 Goods transferred, 185,000 units ? 31 Bal., ? units, 2/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places. Hana Coffee…arrow_forward
- Cost of Production Report Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 6,000 units, 1/5 completed 19,080 31 Direct materials, 270,000 units 837,000 856,080 31 Direct labor 175,100 1,031,180 31 Factory overhead 43,780 1,074,960 31 Goods transferred, 270,000 units ? 31 Bal., ? units, 4/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing The rate used to allocate costs between completed and partially completed…arrow_forwardCost of Production Report Arabica Highland 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 6,100 units, 2/5 completed 20,496 31 Direct materials, 244,000 units 756,400 776,896 31 Direct labor 155,900 932,796 31 Factory overhead 38,964 971,760 31 Goods transferred, 245,000 units ? 31 Bal., ? units, 1/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.…arrow_forwardHana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 6,400 units, 1/5 completed 20,992 31 Direct materials, 288,000 units 921,600 942,592 31 Direct labor 186,900 1,129,492 31 Factory overhead 46,732 1,176,224 31 Goods transferred, 289,000 units ? 31 Bal., ? units, 4/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places. Hana Coffee Company Cost of…arrow_forward
- Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 5,400 units, 1/5 completed 11,448 31 Direct materials, 243,000 units 510,300 521,748 31 Direct labor 97,600 619,348 31 Factory overhead 24,440 643,788 31 Goods transferred, 243,000 units ? 31 Bal., ? units, 2/5 completed ? Required: Question Content Area 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places. Hana Coffee…arrow_forwardCost of Production Report Hana 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 7,600 units, 1/5 completed 12,920 31 Direct materials, 342,000 units 581,400 594,320 31 Direct labor 111,000 705,320 31 Factory overhead 27,704 733,024 31 Goods transferred, 343,000 units ? 31 Bal., ? units, 4/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places. Hana Coffee…arrow_forwardCost of Production Report Arabica Highland 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 July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 4,900 units, 3/5 completed 15,582 31 Direct materials, 196,000 units 548,800 564,382 31 Direct labor 109,500 673,882 31 Factory overhead 27,434 701,316 31 Goods transferred, 197,000 units ? 31 Bal., ? units, 2/5 completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to two decimal places.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY