Fundamental Accounting Principles
24th Edition
ISBN: 9781260158595
Author: Wild
Publisher: MCG
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Chapter 20, Problem 25E
Exercise 20-25 Recording cost flows in a
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and bagging the pieces in the Bagging department. All direct materials enter in the Shredding process. The following describes production operations for October.
| 1 | A | B |
| 2 | Direct materials used (Shredding) | $ 522.000 |
| 3 |
Direct labor used (20% in Shredding: GD% in Bagging | $130.000 |
| 4 | Predetermined overhead rate (based on direct labor) | 175% |
| 5 | Transferred to Bagging | $ 595.000 |
| 6 | Transferred from Bagging to finished goods | $580.000 |
The company's revenue for the month totaled $950.000 from credit sales, and its cost of goods sold for the month is $540.000. Prepare summary
Check (3: Cr. Factory Overhead, 35227.500
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Students have asked these similar questions
Module 4 - Activity-Based Costing: Activity 1
Problem on Activity based costing:
Babes Manufacturing, Inc. Provided the following information for the month of
October, 2020:
Product Honey
Product Hapi
850 units
Number of units produced
Activities/Cost Drivers:
450 units
Materials handling
Production set-up
Quality inspections
Machine depreciation
Additional data:
900 kilos
9 runs
80 hours
3,200 kilos
15 runs
120 hours
280 hours
505 hours
Direct material per unit
Direct labor
Factory overhead is applied at the rate of 100% based on direct labor cost
Estimated overhead costs for October, 2020 amounts to P160,000. The
product is selling at 20% above cost.
P400.00
P600
50% of direct materials
Factory overhead costs estimates for year 2020:
Estimated number
Estimated
Acfivity
Cost Drivers
of cost drivers
Overhead cost
Materials handling
Production set-up
Quality inspections
Machine depreciation Machine hours
No. Of kilos
No. Of rund
Inspection hours
50,000 kilos
300 runs
4,000 hours
20,000…
Question 6
Coco Company manufactures bicycle frames in two departments:cutting and welding.
Coco uses the weighted average method. Manufacturing costs are added uniformly
throughout process. The following are cost and production data for the cutting department
for October:
Production:
Units in process, October 1, 40% complete
Units completed and transferred out
Units in process, October 31, 60% complete
4,000
27,200
8,000
Costs:
Work in process, October 1
Cost added during October
RM32,000
RM608,000
Required:
Prepare a production report for the cutting department.
Question 7
Gorgeous Company had the following production and cost information for it fabrication
department during April (with materials added at the beginning of the fabrication process).
Production:
Units in process, April 1, 50% complete with respect to conversion
Units completed
Units in process, April 30, 60% complete
Costs:
10,000
65,200
12,000
RM
Work in process, April 1
Materials
40,980
Conversion costs
28,920
69,900…
Please answer part iv
Tools & More uses three departments to produce plastic handles for screwdrivers. Forming the handles require mixing the raw materials, molding and drying. After the drying process, the screwdrivers are completed by assembling the handles and the shanks and packing for shipment. The following information relates to the molding process:
There was no opening WIP stock
5,000 kilos of material at $43.08 per kilo entered the process
Direct materials added
$92,000
Direct wages incurred
65,700
Production overhead
75,100
Normal loss is 4% of input
A quality control check was done at the end of the molding process and 350 handles were rejected as spoilage. Spoiled units, regardless of their degree of completion, are sold at $45.00 each, and it is company’s policy to credit the process account with the scrap value of the normal loss units.
Closing WIP was 800 units but these were incomplete, having reached the following percentages of…
Chapter 20 Solutions
Fundamental Accounting Principles
Ch. 20 - Prob. 1DQCh. 20 - Prob. 2DQCh. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - Explain in simple terms the notion of equivalent...Ch. 20 - Prob. 7DQCh. 20 - Prob. 8DQCh. 20 - Direct labor costs flow through what accounts in a...Ch. 20 - Prob. 10DQ
Ch. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Companies such as Apple commonly prepare a process...Ch. 20 - Prob. 15DQCh. 20 - Prob. 16DQCh. 20 - Prob. 17DQCh. 20 - How could a company manager use a process cost...Ch. 20 - Explain a hybrid costing system. Identify' a...Ch. 20 - Prob. 1QSCh. 20 - Prob. 2QSCh. 20 - Process vs. job order operations C1 For each of...Ch. 20 - Physical flow reconciliation C2 Prepare a physical...Ch. 20 - Prob. 5QSCh. 20 - A FIFO: Computing equivalent units C4 Refer to QS...Ch. 20 - Prob. 7QSCh. 20 - Prob. 8QSCh. 20 - Prob. 9QSCh. 20 - Prob. 10QSCh. 20 - Prob. 11QSCh. 20 - Prob. 12QSCh. 20 - Prob. 13QSCh. 20 - Prob. 14QSCh. 20 - Prob. 15QSCh. 20 - Prob. 16QSCh. 20 - A FIFO: Journal entry to transfer costs P4 Refer...Ch. 20 - Prob. 18QSCh. 20 - Weighted average: Assigning costs to output C3...Ch. 20 - Prob. 20QSCh. 20 - Prob. 21QSCh. 20 - Prob. 22QSCh. 20 - Recording costs of materials P1 Hotwax mates...Ch. 20 - Prob. 24QSCh. 20 - Recording costs of factory overhead P1 P3 Prepare...Ch. 20 - Recording transfer of costs to finished goods P4...Ch. 20 - Exercise 20-1 Process vs. job order operations C1...Ch. 20 - Exercise 20-2 Comparing process and job order...Ch. 20 - Prob. 3ECh. 20 - Prob. 4ECh. 20 - Prob. 5ECh. 20 - Prob. 6ECh. 20 - Prob. 7ECh. 20 - Exercise 20-8 Weighted average: Computing...Ch. 20 - Prob. 9ECh. 20 - Prob. 10ECh. 20 - Prob. 11ECh. 20 - Prob. 12ECh. 20 - Exercise 20-13A
FIFO: Completing a process cost...Ch. 20 - Exercise 20-14 Production cost flow and...Ch. 20 - Exercise 20-15 Recording product costs P1 P2 P3...Ch. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Exercise 20-22 Recording costs of labor P2 Prepare...Ch. 20 - Prob. 23ECh. 20 - Prob. 24ECh. 20 - Exercise 20-25 Recording cost flows in a process...Ch. 20 - Exercise 20-26 Interpretation of journal entries...Ch. 20 - Prob. 1APSACh. 20 - Prob. 2APSACh. 20 - Prob. 3APSACh. 20 - Problem 20-4A Weighted average: Process cost...Ch. 20 - Problem 20-5AA FIFO: Process cost summary:...Ch. 20 - Prob. 6APSACh. 20 - Prob. 7APSACh. 20 - Prob. 1BPSBCh. 20 - Prob. 2BPSBCh. 20 - Prob. 3BPSBCh. 20 - Prob. 4BPSBCh. 20 - Problem 20-5BA FIFO: Process cost summary;...Ch. 20 - Problem 20-6BAFIFO: Costs per equivalent unit;...Ch. 20 - Problem 20-7BA FIFO: Process cost summary,...Ch. 20 - Prob. 20SPCh. 20 - Prob. 20CPCh. 20 - Prob. 1GLPCh. 20 - Apple has entered into contracts that require the...Ch. 20 - Apple and Google work to maintain high-quality and...Ch. 20 - Prob. 3AACh. 20 - Prob. 1BTNCh. 20 - Prob. 2BTNCh. 20 - Many companies use technology to help them improve...Ch. 20 - Prob. 4BTNCh. 20 - Prob. 5BTNCh. 20 - Prob. 6BTN
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