Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 20, Problem P20.40BPGB
Preparing a production cost report, second department with beginning W1P; decision making
Lake Bound uses three processes to manufacture lifts for personal watercrafts: forming a lift’s parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to finished goods before shipment to materials across the country.
Lake Bound’s Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for October 2016:
The cost transferred into Finished Goods Inventory is the cost of the lifts transferred
out of the Testing Department. Lake Bound uses weighted-average
Requirements
- Prepare a production cost report for the Testing Department.
- What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management he interested in this cost'
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Preparing production cost report, second department with beginning WIP; decision making
Ocean Worthy uses three processes to manufacture lifts for personal watercraft: forming a lift’s parts from galvanized steel, assembling the lift, and testing the completed lift. The lifts are transferred to Finished Goods Inventory before shipment to marinas across the country.
Ocean Worthy’s Testing Department requires no direct materials. Conversion costs are incurred evenly throughout the testing process. Other information follows for the month of August:
The cost transferred into Finished Goods Inventory is the cost of the lifts transferred out of the Testing Department. Ocean Worthy uses Weighted-average process costing.
Requirements
Prepare a production cost report for the Testing Department.
What is the cost per unit for lifts completed and transferred out to Finished Goods Inventory? Why would management be interested in this cost?
Berrian Company manufactures car seats in its Tulsa plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department.
Data for the assembly department for October
2017
are as follows:
Read the requirements3.
Requirement 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
Equivalent Units
Physical
Direct
Conversion
Flow of Production
Units
Materials
Costs
Work in process beginning
Started during current period
To account for
Completed and transferred out during current period
Work in process, ending
Accounted for
Work done to date
Requirement 2. What issues should the manager focus on when reviewing the equivalent-unit calculations?
To show better…
Chilly Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Suppose that
Chilly uses the FIFO method. The following information for June
2017 is available.
Read the requirements2.
Requirement 1. Calculate equivalent units of work done in the current period (for transferred-in costs, direct materials, and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process. (Enter a "0" for any zero balances.)
Equivalent Units
Physical Units
Transferred-In
Direct
Conversion
(tons)
Costs
Materials
Costs
Work in process, beginning
60
Transferred-in during current period
100
To account for
Completed and…
Chapter 20 Solutions
Horngren's Accounting (11th Edition)
Ch. 20 - Prob. 1QCCh. 20 - Prob. 2QCCh. 20 - Prob. 3QCCh. 20 - Prob. 4QCCh. 20 - Prob. 5QCCh. 20 - Prob. 6QCCh. 20 - Prob. 7QCCh. 20 - Prob. 8QCCh. 20 - Prob. 9QCCh. 20 - Prob. 10QC
Ch. 20 - 11A.Which statement is accurate concerning the...Ch. 20 - Prob. 1RQCh. 20 - Prob. 2RQCh. 20 - Prob. 3RQCh. 20 - Prob. 4RQCh. 20 - Prob. 5RQCh. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - Prob. 10RQCh. 20 - Prob. 11RQCh. 20 - Prob. 12RQCh. 20 - Prob. 13RQCh. 20 - 14. What is the weighted-average method for...Ch. 20 - Prob. 15RQCh. 20 - Prob. 16RQCh. 20 - Prob. 17RQCh. 20 - Prob. 18RQCh. 20 - Prob. 19RQCh. 20 - Prob. 20RQCh. 20 - Prob. 21RQCh. 20 - Prob. 22ARQCh. 20 - Describe the three groups of units that must be...Ch. 20 - Prob. 24ARQCh. 20 - Prob. S20.1SECh. 20 - S20-2 Tracking the flow of costs
Learning...Ch. 20 - Prob. S20.3SECh. 20 - Prob. S20.4SECh. 20 - Calculating conversion costs and unit cost Russia...Ch. 20 - Calculating conversion costs and unit cost Russia...Ch. 20 - Prob. S20.7SECh. 20 - Prob. S20.8SECh. 20 - Prob. S20.9SECh. 20 - Prob. S20.10SECh. 20 - Prob. S20.11SECh. 20 - Prob. S20.12SECh. 20 - Prob. S20.13SECh. 20 - Prob. S20.14SECh. 20 - Prob. S20A.15SECh. 20 - Prob. S20A.16SECh. 20 - Prob. E20.17ECh. 20 - Prob. E20.18ECh. 20 - Prob. E20.19ECh. 20 - Prob. E20.20ECh. 20 - Prob. E20.21ECh. 20 - Prob. E20.22ECh. 20 - Prob. E20.23ECh. 20 - Prob. E20.24ECh. 20 - Prob. E20.25ECh. 20 - Prob. E20.26ECh. 20 - Prob. E20.27ECh. 20 - Prob. E20.28ECh. 20 - Prob. P20.29APGACh. 20 - Prob. P20.30APGACh. 20 - Prob. P20.31APGACh. 20 - Prob. P20.32APGACh. 20 - Prob. P20.33APGACh. 20 - Prob. P20.34APGACh. 20 - Prob. P20.35APGACh. 20 - Preparing a production cost report, no beginning...Ch. 20 - Prob. P20A.37APGACh. 20 - Prob. P20A.38APGACh. 20 - Prob. P20.39BPGBCh. 20 - Preparing a production cost report, second...Ch. 20 - Prob. P20.41BPGBCh. 20 - Prob. P20.42BPGBCh. 20 - Prob. 20.1DCCh. 20 - Prob. 20.1EI
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