COST ACCOUNTING TTU >IC<
17th Edition
ISBN: 9781323409046
Author: Horngren
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 20, Problem 20.28E
Backflush costing, two trigger points, materials purchase and sale (continuation of 20-27). Assume the same facts as in Exercise 20-27, except that Grand Devices now uses a backflush costing system with the following two trigger points for making entries in the accounting system:
- Purchase of direct materials
- Sale of finished goods
The Inventory Control account will Include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.
- 1. Prepare summary
journal entries for August, including the disposition of under- or overallocated conversion costs.
Required
- 2.
Post the entries In requirement 1 to T-accounts for Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In the cost reconciliation report under the weighted-average method, the "Costs to be accounted for" section contains which of the following items?
Question 27 options:
Cost of ending work in process inventory
Cost of units transferred out
Cost of ending finished goods inventory
Cost of beginning work in process inventory
Previous PageNext Page
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 45,000 mini refrigerators, of which 42,000 were sold Operating data for the month are
summarized as follows
Sales
Manufacturing costs;
Direct materials
4 Direct labor
1 Variable manufacturing cost
Fixed manufacturing cost
7 Selling and administrative expenses
Variable
Fixed
$5,220,000.00
1,380,000.00
828.000.00
506,000.00
$756,000.00
294,000.00
$9,660,000.00
5,954,000.00
1,050,000.00
Kindly assist with the following:
a) Prepare a statement of equivalent production to determine the equivalent units for direct materials (from Process 1 & Direct material added), and conversion costs and the cost per equivalent unit for direct materials and conversion costs.
(b) Calculate:
Total cost of units completed and transferred to Finished Goods Inventory.
Cost of abnormal losses
Cost of ending work-in-process inventory in Process 2.
c) Prepare Better Choice's Work-in-Process Inventory -Process 2 T-account, clearly showing the ending balance.
Chapter 20 Solutions
COST ACCOUNTING TTU >IC<
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - The order size associated with the...Ch. 20 - Prob. 20.17MCQCh. 20 - Prob. 20.18MCQCh. 20 - Lyle Co. has only one product line. For that line,...Ch. 20 - Just-in-time inventory assumes all of the...Ch. 20 - Economic order quantity for retailer. Wonder Line...Ch. 20 - Economic order quantity, effect of parameter...Ch. 20 - EOQ for a retailer. The Fabric World sells fabrics...Ch. 20 - EOQ for manufacturer. Sk8 Company produces...Ch. 20 - Sensitivity of EOQ to changes in relevant ordering...Ch. 20 - JIT production, relevant benefits, relevant costs....Ch. 20 - Backflush costing and JIT production. Grand...Ch. 20 - Backflush costing, two trigger points, materials...Ch. 20 - Backflush costing, two trigger points, completion...Ch. 20 - Prob. 20.30PCh. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - JIT purchasing, relevant benefits, relevant costs....Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Backflush costing and JIT production. The Acton...Ch. 20 - Backflush, two trigger points, materials purchase...Ch. 20 - Backflush, two trigger points, completion of...Ch. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - JIT production, relevant benefits, relevant costs,...
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
- 3. it is a product costing system generally used in just-in-time inventory environment. This costing system delays the costing process until the production of goods is completed by eliminating the detailed tracking of cost throughout the production system and preparing journal entries only at trigger points. a.Backflush costing B.Standard costing C.Normal costing D.Traditional costing E.None of the abovearrow_forwardThe finished goods inventory account is used to record which of the following? Group of answer choices The costs of completed products that have been sold The cost of materials not yet put into production The costs of products that are complete and ready to sell The costs of products that are in production but that are not yet completearrow_forwardCost of Goods Sold that are NOT part of Goods Available for Sale are included in A. Work-in-Process Inventory beginning balance B. Work-in Process Inventory ending balance C. Direct Labor D. Finished Goods Inventory ending balance Given the following data, what is the cost of goods manufactured? Beginning Raw Materials Inventory Ending Raw Materials Inventory Beginning Work-in-Process Inventory Ending Work-in-Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Manufacturing Overhead Direct Labor Raw Materials used in production A. $125,000 B. $141,000 12:03 C. $146,000 D. $151,000 $6,000 9,000 12,000 17,000 3,000 5,000 21,000 30,000 95,000 12:03arrow_forward
- The cost of partially completed goods at the end of the period would be Group of answer choices Ending work in process inventory Cost of goods sold Beginning finished goods inventory Beginning work in process inventoryarrow_forwardWilma Waggins Company uses a process costing inventory system. The goods are processed first in department X and then passed onto department Y before being passed on as finished goods inventory. What is the journal entry for the transfer of unfinished goods from department X to department Y? Veuillez choisir une réponse : a. DR WIP - Department Y, CR Raw Materials b. DR WIP - Department Y, CR WIP - Department X c. DR WIP- Department X, CR Finished Goods Inventory d. DR WIP - Department X, CR WIP - Department Yarrow_forwardWhich of the following is the best description of the operating cycle? Multiple Choice The length of time that it takes to convert raw materials into inventory The length of time that it takes to convert raw materials into accounts receivable The length of time to acquire raw materials and receive payment for them when sold None of the optionsarrow_forward
- Cost accounting systems used by manufacturing companies are based on the: A. LIFO inventory system. B. Perpetual inventory system. C. Finished goods inventories. D. Weighted average inventories. E. Periodic inventory system. Reset Selectionarrow_forward2) Under process costing the perpetual inventory system is used account is credited to adjust for underallocated overhead costs. The OA Manufacturing Overhead OB Cost of Goods Soid Oc Sales Revenue OD. Finished Goods inventoryarrow_forward: Use T-accounts to show the flow of costs in g system Which accounts are the inventory accounts? (check all that apply) Direct Labor Raw Materials Work in Process Partially Finished Goods Finished Goods Cost of Goods Sold SUBMITarrow_forward
- Use the included information about Raw Materials Inventory (RM), Work in Process Inventory (WIP), Finished Goods Inventory (FG), and the Income Summary (IS). Determine the total conversion costs added. 1 2 3 4 5 6 7 1 00 RM B Bal T1 T2 T3 T4 E Bal 8 9 FG 10 B Bal 11 T1 12 T2 13 T3 14 T4 15 E Bal 2 Debits 4300 29 050 Debits 4800 45 592 3 Credits 28 000 Credits 33 500 4 5 WIP B Bal DM DL FOH CGM E Bal IS Rev CGS V Op Exp F Op Exp NIBT 6 Debits 8920 28 000 17 430 11 130 Debits 33 500 5130 7960 7 Credits 45 592 Credits 66 200arrow_forwardTB MC Qu. 3-30 (Static) The final step in recognizing the... The final step in recognizing the completion of production requires a company to: Multiple Choice add direct materials to Finished-Goods Inventory. add direct labor to Work-in-Process Inventory. add direct materials, direct labor, and manufacturing overhead to Work-in-Process Inventory. debit Finished-Goods Inventory and credit Work-in-Process Inventory. debit Work-in-Process Inventory and credit Finished-Goods Inventory.arrow_forward26. Which of the following sentence not related to ‘purchasing by requirement’? a.Purchasing goods, which are not regularly required. b.Market situation is constantly studied. c.Purchase of emergency goods. d.Knowledge of the suppliers of such goods. 28. Identify the journal entry for normal wastage. a.Dr.Material inventory, Cr.Work in process inventory b.Dr.Material inventory, Cr.Production overheads c.Dr.Costing profit and loss account, Cr.Work in process inventory d.Dr.Production overheads, Cr.Work in process inventoryarrow_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
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license