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
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Chapter 18, Problem 18.5BPR
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 cost of production report for sifting department during the month of May using average cost method of Company BRF.
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The GreenEarth Aluminum Company uses a process cost accounting system to record the costs of manufacturing rolled aluminum. The manufacturing process consists of three processes. The goods-in-process inventory of one of the processes (the rolling department) on September 1, 2018 and debits to the account for September are summarized below:
Beginning balance—5,100 units, 1/3 completed:
Direct materials (5,100 x 38.70)$ 197,370
Conversion costs (5,100 x 1/3 x 11.72) 19,924
Total beginning balance 217,294
Additional debits during the month:
Costs from Smelting Department (162,000 units) 6,240,000
Direct Labor 765,800
Factory Overhead 1,144,000
During the month of September, the 5,100 units in process at the beginning of the month were completed, and of the 162,000 units entering the department from Smelting, all were completed except 5,400 units that were 4/5 completed (hint—remember the materials are the items transferred from the Smelting Department).
A) Determine the number of units…
The GreenEarth Aluminum Company uses a process cost accounting system to record the costs of manufacturing rolled aluminum. The manufacturing process consists of three processes. The goods-in-process inventory of one of the processes (the rolling department) on September 1, 2018 and debits to the account for September are summarized below:
Beginning balance—5,100 units, 1/3 completed:
Direct materials (5,100 x 38.70)$ 197,370
Conversion costs (5,100 x 1/3 x 11.72) 19,924
Total beginning balance 217,294
Additional debits during the month:
Costs from Smelting Department (162,000 units) 6,240,000
Direct Labor 765,800
Factory Overhead 1,144,000
During the month of September, the 5,100 units in process at the beginning of the month were completed, and of the 162,000 units entering the department from Smelting, all were completed except 5,400 units that were 4/5 completed (hint—remember the materials are the items transferred from the Smelting Department).
A) Determine the number of units…
X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a
process cost accounting system. All materials are entered
the beginning of each process.
During April 2020, the following transactions were completed:
Assigned raw materials of $60,000 and $50,000 to Work in Process Mixing and Packaging
respectively.
Factory labor costs of $20,000 and $40,000 were assigned to Work in Process Mixing and Packaging
respectively.
The company applied manufacturing overhead on the basis of $15 per machine hour.
Machine hours used were 1,000 in Mixing and 2,000 in Packaging.
During April, the company transferred units costing S80,000 from Mixing to Packaging.
In addition, it trans ferred units costing $160,000 from Packaging to Finished Goods.
Based on the above, the entry
prepared to assign factory labor to
work in processes consisted of:
A Debit to WIP Mixing $20,000, a Debit
to WIP Packaging $40,000, and a
Credit to Factory Labor Inventory
$60,000
A Debit to WIP…
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
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- Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.arrow_forwardDublin Brewing Co. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during October: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 13,000 units finished and transferred to stockroom Work in process, end of period, 2,000 units one-half completed Required: Prepare a cost of production summary for October.arrow_forwardProteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is: a. 4,471,200 b. 3,571,200 c. 3,780,000 d. 3,024,000arrow_forward
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