Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
12th Edition
ISBN: 9780134486826
Author: MILLER-NOBLES, Tracie L.; Mattison, Brenda L.; Matsumura, Ella Mae
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 18, Problem E18.19E
Computing cost of goods manufactured
Learning Objective 3
Consider the following partially completed schedules of cost of goods manufactured. Compute the missing amounts.
Banner, Inc. Larry's Bakery Sports Gear | |||
Beginning Work-in-Process Inventory | $ (a) | $ 40,800 | $ 2,200 |
Direct Materials Used | 14,400 | 35,900 | (g) |
Direct Labor | 10,300 | 20,100 | 1,900 |
Manufacturing Overhead | (b) | 10,000 | 900 |
Total |
45,200 | (d) | (h) |
Total Manufacturing Costs to Account for | 55,400 | (e) | 8,300 |
Ending Work-in-Process Inventory | (c) | (25,500) | (2,600) |
Cost of Goods Manufactured | $ 50,500 | $ (f) | $(i) |
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Question 4 : a company, manufactures educational toys using process costing
system. Plastic is molded into the appropriate shapes in the Molding Department.
Molded components are transferred to the Assembly Department where the toys
are assembled.
Molding
Beginning inventory:
Units
500
Prior department
Materials
Conversion costs
Started or transferred in:
$2,500.00
$1,050.00
Units
February costs:
Prior department
Materials
1,000
$5,000.00
Conversion costs
$7,660.00
Ending inventory in units
200
Beginning and ending work in process for the department showed the following degree of completion:
Molding
Degree of completion:
Beginning work in process, materials
Beginning work in process, conversion costs
Ending work in process, materials
Ending work in process, conversion costs
100%
30
100
20
Required : 1. Calculate the Modeling Department's equivalent units of production for
materials and conversion in July using FIFO method.
2. Summarize total costs to account for and assign total costs…
Learning Objectives 2, 3, 4
1. Total cost per EUP $2.26
3. WIP Balance $1,836
Open with
P18-38B Preparing a production cost report, two materials added at different
points, no beginning WIP or costs transferred in; journal entries
Bryan's Exteriors produces exterior siding for homes. The Preparation Department
begins with wood, which is chopped into small bits. At the end of the process, an
adhesive is added. Then the wood/adhesive mixture goes on to the Compression
Department, where the wood is compressed into sheets. Conversion costs are
added evenly throughout the preparation process. January data for the Preparation
Department are as follows:
UNITS
Beginning Work-in-Process Inventory
Started in production
Completed and transferred out to Compression in January
Ending Work-in-Process inventory (35% of the way through
the preparation process)
COSTS
Beginning Work-in-Process Inventory
Costs added during January:
Wood
Adhesives
Direct labor
Manufacturing overhead allocated
Total costs…
Learning Objectives 2, 3, 4
1. Total EUP for CC 2,850
3. WIP Balance $1,145
P18-31A Preparing a production cost report, two materials added at different
points, no beginning WIP or costs transferred in; journal entries
Smith's Exteriors produces exterior siding for homes. The Preparation Department
begins with wood, which is chopped into small bits. At the end of the process, an
adhesive is added. Then the wood/adhesive mixture goes on to the Compression
Department, where the wood is compressed into sheets. Conversion costs are
added evenly throughout the preparation process. January data for the Preparation
Department are as follows:
UNITS
Beginning Work-in-Process Inventory
Started in production
Completed and transferred out to Compression in January
Ending Work-in-Process inventory (30% of the way through
the preparation process)
COSTS
Beginning Work-in-Process Inventory
Costs added during January
Wood
Adhesives
Direct labor
Manufacturing overhead allocated
Total costs
Requirements…
Chapter 18 Solutions
Horngren's Accounting: The Managerial Chapters (12th Edition) (loose Leaf Version)
Ch. 18 - Prob. 1QCCh. 18 - Prob. 2QCCh. 18 - Dunaway Company reports the following costs for...Ch. 18 - Which of the following is a direct cost of...Ch. 18 - Which of the following is not part of...Ch. 18 - Which of the following accounts does a...Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - Questions 7 and 8 use the data that follow....Ch. 18 - World-class businesses use which of these systems...Ch. 18 - Prob. 10QC
Ch. 18 - What is the primary purpose of managerial...Ch. 18 - List six differences between financial accounting...Ch. 18 - Explain the difference between line positions and...Ch. 18 - Explain the differences between planning,...Ch. 18 - Prob. 5RQCh. 18 - Describe a service company, and give an example.Ch. 18 - Describe a merchandising company, and give an...Ch. 18 - How do manufacturing companies differ from...Ch. 18 - List the three inventory accounts used by...Ch. 18 - Explain the difference between a direct cost and...Ch. 18 - What are the three manufacturing costs for a...Ch. 18 - Give five examples of manufacturing overhead.Ch. 18 - What are prime costs? Conversion costs?Ch. 18 - What are product costs?Ch. 18 - How do period costs differ from product costs?Ch. 18 - How is cost of goods manufactured calculated?Ch. 18 - How does a manufacturing company calculate cost of...Ch. 18 - How does a manufacturing company calculate unit...Ch. 18 - How does a service company calculate unit cost per...Ch. 18 - How does a merchandising company calculate unit...Ch. 18 - Prob. S18.1SECh. 18 - Prob. S18.2SECh. 18 - Distinguishing between direct and indirect costs...Ch. 18 - Computing manufacturing overhead Learning...Ch. 18 - Identifying product costs and period costs...Ch. 18 - Computing cost of goods sold, merchandising...Ch. 18 - Computing cost of goods sold and operating income,...Ch. 18 - Prob. S18.8SECh. 18 - Prob. S18.9SECh. 18 - Prob. S18.10SECh. 18 - S18-11 Matching business trends...Ch. 18 - Prob. S18.12SECh. 18 - Prob. E18.13ECh. 18 - Prob. E18.14ECh. 18 - Prob. E18.15ECh. 18 - Prob. E18.16ECh. 18 - Identifying differences between service,...Ch. 18 - Prob. E18.18ECh. 18 - Computing cost of goods manufactured Learning...Ch. 18 - Prob. E18.20ECh. 18 - Prob. E18.21ECh. 18 - Prob. E18.22ECh. 18 - Prob. E18.23ECh. 18 - Prob. E18.24ECh. 18 - Prob. P18.25APGACh. 18 - Classifying period costs and product costs...Ch. 18 - Calculating cost of goods sold for merchandising...Ch. 18 - Prob. P18.28APGACh. 18 - Preparing a schedule of cost of goods manufactured...Ch. 18 - Prob. P18.30APGACh. 18 - Prob. P18.31APGACh. 18 - Prob. P18.32APGACh. 18 - Prob. P18.33BPGBCh. 18 - Prob. P18.34BPGBCh. 18 - Prob. P18.35BPGBCh. 18 - Prob. P18.36BPGBCh. 18 - Prob. P18.37BPGBCh. 18 - Prob. P18.38BPGBCh. 18 - Prob. P18.39BPGBCh. 18 - Prob. P18.40BPGBCh. 18 - Prob. P18.41CTCh. 18 - Prob. P18.42CPCh. 18 - Prob. 18.1TIATCCh. 18 - Prob. 18.1DCCh. 18 - Prob. 18.1EI
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
- Exercise 2: Flow of Cost - Cost System You are required to compute for the unknowns in the following accounts: Materials Inventory 7,950 Purchase Returns 750 Purchases 27,500 Direct Materials ? Indirect Materials (e) Inventory, end 5,100 Work in Process Inventory 13,650 Cost of Goods Sold Completed (c) Direct Materials Cost 23,500 Direct Labor Cost (a) Factory Overhead Applied (100% of direct labor cost) (b) Inventory 11,750 62,150 Finished Goods Inventory 12,500 Cost of Goods Sold (d) Cost of Goods Sold Completed ? Inventory, end 11,250arrow_forwardView Policies Current Attempt in Progress Logan's Enterprises reported the following data for May. Beginning balance, Direct Materials Inventory Beginning balance, Work in Process Inventory Beginning balance, Finished Goods Inventory Ending balance, Direct Materials Inventory Purchase of direct materials Direct labor Manufacturing overhead applied Cost of goods manufactured Cost of Goods Sold (a) Direct materials used in production $ e Textbook and Media $45,000 Save for Later 52,000 62,000 47,000 92,000 48,000 42,000 What is the cost of direct materials were used in production? 200,000 220,000 Attempts: 0 of 4 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit Answerarrow_forwardE19-15 Computing and using single plantwide overhead allocation rate Learning Objective 1 Basic $322,000 Koehler makes handheld calculators in two models: basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine hours, and the professional model consumed 285,000 machine hours. Compute the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. How much overhead is allocated to the basic model? To the professional model?arrow_forward
- P16 • MANUFACTURING ACCOUNTING (MFG) LEARNING OBJECTIVES Prepare a schedule of cost of goods manufactured and sold. • Calculate changes in labor cost needed to achieve production goals. Alter the worksheet to include an income statement for a manufacturing firm. Create a chart showing the dollar amount of materials, labor, and overhead. PROBLEM DATA The following information is for Twisp Industries for the year ended December 31, 2011: Depreciation-equipment $ 180,000 Direct labor 2,568,000 Direct materials inventory, 1/1/11 366,000 Direct materials inventory, 12/31/11 372,000 Factory rent 305,640 Finished goods, 1/1/11 528,000 Finished goods, 12/31/11 690,000 Indirect labor 150,000 Indirect materials 105,000 Purchases of direct materials 2,580,720 Work in process, 1/1/11 121,200 Work in process, 12/31/11 114,660 REQUIREMENT 1. You have been asked to prepare a schedule of cost of goods manufactured and sold for the year just ended. Review the worksheet MFG that follows these…arrow_forwardComplete the information in the cost computations shown here: Raw materials Beginning inventory $342 Purchases 1,534 Materials available for use $fill in the blank 1 Ending inventory 320 Materials used in production $fill in the blank 2 Work in process inventory Beginning inventory $933 Materials used in production fill in the blank 3 Direct labor 1,533 Overhead applied fill in the blank 4 Manufacturing costs incurred $22,418 Ending inventory 933 Cost of goods manufactured $fill in the blank 5 Finished goods inventory Beginning inventory $fill in the blank 6 Cost of goods manufactured fill in the blank 7 Goods available for sale $24,982 Ending inventory fill in the blank 8 Cost of goods sold $21,769arrow_forwardCengageNOWv2| Online teaching and learning resource from Cengage Learni eBook A company has 2,000 units in ending work in process that are 40% complete after transferring out 10,000 units. All materials are added at the beginning of the process. If the cost per unit is $4 for materials and $7 for conversion, what is the cost of units transferred out and in ending work in process inventory using the weighted-average method? Cost of units transferred out Ending work in process inventory $ %24arrow_forward
- S17-8 Completing and selling products Learning Objective 4 Lincoln Company completed jobs that cost $38,000 to produce. In the same period, the company sold jobs for $88,000 that cost $42,000 to produce. Prepare the journal entries for the completion and sales of the jobs. All sales are on account.arrow_forwardS18-13 Preparing journal entry Learning Objective 5 The Mixing Department's production cost report for May shows $12,500 in total costs, of which $2,500 will remain in the department assigned to the units still in process at the end of the month. Prepare the journal entry to record the transfer of costs from the Mixing Department to the Packaging Department.arrow_forwardCengageNOWv2 | Online teaching and learning resource from Cengage Learni еBook There were 2,600 units in ending work in process inventory that were 100% complete with regard to material and 30% complete with regard to conversion costs. Ending work in process inventory had a cost of $8,060 and a per-unit material cost of $1. What was the conversion cost per unit using the weighted-average method? Conversion cost per unit $arrow_forward
- Raw materials inventory, ending Purchases of raw materials Direct labor Manufacturing overhead Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $10 $110 $210 $220 $80 $20 $140 $150 Required: Answer the following questions (Show your computations) 1. Calculate the cost of the raw materials used in production during the year (in thousands of dollars) 2.Calculate the cost of goods manufactured (finished) for the year (in thousands of dollars) 3.Calculate the cost of goods sold for the year (in thousands of dollars)arrow_forwardE3-25A Analyze manufacturing overhead (Learning Objectives 3 & 5) Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the begin- ning of the year, the company expected to incur the following: Manufacturing overhead costs Direct labor cost Machine hours $ 630,000 $1,650,000 90,000 ********e** At the end of the year, the company had actually incurred the following: Direct labor cost Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries ... $1,230,000 $ 480,000 $ 19,500 $ 26,500 Delivery drivers' wages Plant janitors' wages 17,000 %24 8,500 Machine hours 56,500 hours Requirements 1. Compute Smith's predetermined manufacturing overhead rate. 2. How much manufacturing overhead was allocated to jobs during the year? 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end…arrow_forwardBeginning Work in Process: Ending Work in Process: Beginning Finished Goods Inventory: Ending Finished Goods Inventory: Beginning Raw Materials Inventory Ending Raw Materials Inventory Raw Material Purchases Indirect Materials Used: Direct Labor: Indirect Labor: Administrative and Selling Expenses: Other Manufacturing Overhead: Required: Complete a Schedule of Cost of Goods Manufactured for the Smithfield Company. $50,000 $55,000 $190,000 $140,000 $210,000 $190,000 $205,000 $45,000 $320,000 $70,000 $205,000 $135,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY