CUSTOM COST ACCT 2521 SWP W/ ACCESS
17th Edition
ISBN: 9781323674116
Author: Pearson
Publisher: Pearson Custom Publishing
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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.
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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
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We discuss how to calculate the number of equivalent units and theequivalent cost per unit, and to reconcile the total cost of Work inProcess Inventory using the first-in, first-out (FIFO) method. You alsounderstood how to prepare the process costing production reportusing the first-in, first-out (FIFO) method.
Knowledge Check 02Parker Corporation makes candy bars. One of its processing departmentsreported the following information for August. Beginning work in process costsincluded $50,000 in direct materials and $110,000 in conversion cost. A total of$144,000 of direct materials costs and $210,000 in conversion cost wasincurred during the month. Equivalent units totaled 12,000 for direct materialsand 8,000 for conversion cost. Using the first-in, first-out (FIFO) method,Parker's cost per equivalent unit for conversion during August would be:
Under variable costing, which of the following costs would be included in finished goods inventory?
a. salary of vice president of finance
b. wages of carpenters in a furniture factory
c. straight-line depreciation on factory equipment
d. salary of salesperson
Chapter 20 Solutions
CUSTOM COST ACCT 2521 SWP W/ ACCESS
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,...
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