Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 1CMA
During December, Krause Chemical Company had the following selected data concerning the manufacture of Xyzine, an industrial cleaner:
All materials are added at the beginning of processing in this department, and conversion costs are added uniformly during the process. The beginning work in process inventory had $120 of raw materials and $180 of conversion costs incurred. Materials added during December were $540, and conversion costs of $1,484 were incurred. Krause uses the first-in, first-out (FIFO)
The equivalent units of production used to compute conversion costs for December were:
- a. 110 units.
- b. 104 units.
- c. 100 units.
- d. 92 units.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
solve the attached questions
Respond the attached questions
Given the data, fill in the empty boxes.
Chapter 3 Solutions
Managerial Accounting
Ch. 3 - Which type of cost system, process or job order,...Ch. 3 - In job order cost accounting, the three elements...Ch. 3 - In a job order cost system, direct labor and...Ch. 3 - Why is the cost per equivalent unit often...Ch. 3 - What is the purpose for determining the cost per...Ch. 3 - Rameriz Company is a process manufacturer with two...Ch. 3 - What is the most important purpose of the cost of...Ch. 3 - How are cost of production reports used for...Ch. 3 - Job order versus process costing Which of the...Ch. 3 - Kraus Steel Company has two departments, Casting...
Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The Rolling Department of Kraus Steel Company had...Ch. 3 - The cost of direct materials transferred into the...Ch. 3 - The costs per equivalent unit of direct materials...Ch. 3 - In October, the cost of materials transferred into...Ch. 3 - Prob. 8BECh. 3 - Entries for materials cost flows in a process cost...Ch. 3 - Flowchart of accounts related to service and...Ch. 3 - Radford Inc. manufactures a sugar product by a...Ch. 3 - The cost accountant for River Rock Beverage Co....Ch. 3 - The Converting Department of Worley Company had...Ch. 3 - Data for the two departments of Kimble Pierce...Ch. 3 - The following information concerns production in...Ch. 3 - a. Based upon the data in Exercise 17-7, determine...Ch. 3 - Equivalent units of production Kellogg Company...Ch. 3 - Costs per equivalent unit Georgia Products Inc....Ch. 3 - The charges to Work in ProcessAssembly Department...Ch. 3 - a. Based on the data in Exercise 17-11, determine...Ch. 3 - Errors in equivalent unit computation Napco...Ch. 3 - Cost per equivalent unit The following information...Ch. 3 - Costs per equivalent unit and production costs...Ch. 3 - Cost of production report The debits to Work in...Ch. 3 - Cost of Production report The Cutting Department...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - The Converting Department of Tender Soft Tissue...Ch. 3 - Units of production data for the two departments...Ch. 3 - The following information concerns production in...Ch. 3 - Prob. 24ECh. 3 - The following information concerns production in...Ch. 3 - Prob. 26ECh. 3 - Prepare a cost of production report for the...Ch. 3 - Entries for process cost system Port Ormond Carpet...Ch. 3 - Cost of production report Hana Coffee Company...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Sunrise Coffee Company roasts and packs coffee...Ch. 3 - Entries for process cost system Preston Grover...Ch. 3 - Cost of production report Bavarian Chocolate...Ch. 3 - Equivalent units and related costs; cost of...Ch. 3 - Work in process account data for two months; cost...Ch. 3 - Blue Ribbon Flour Company manufactures flour by a...Ch. 3 - Dura-Conduit Corporation manufactures plastic...Ch. 3 - Analyzing process cost elements across product...Ch. 3 - Analyzing process cost elements over time Pix...Ch. 3 - Determining cost relationships Midst ate...Ch. 3 - Ethics in Action You are the Cookie division...Ch. 3 - Communications Jamarcus Bradshaw, plant manager of...Ch. 3 - Accounting for materials costs In papermaking...Ch. 3 - During December, Krause Chemical Company had the...Ch. 3 - Jones Corporation uses a first-in, first-out...Ch. 3 - Kimbeth Manufacturing uses a process cost system...Ch. 3 - A company is using process costing with the...
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
- JH and Joe corporations are members of a consolidated group. JH owns 10 shares of the marketable stock having $10,000 basis in total. In 2024, JH sells all the shares to Joe for $40,000. In 2025, Joe sells 5 shares of the stock to Ethan corporation, an unrelated entity outside the consolidated group, for $30,000. In 2026, Joe sells the other 5 shares of the stock to Young corporation, an unrelated entity outside the consolidated group, for $50,000. Explain and/or illustrate the timing of and extent to which JH’s intercompany item is taken into account for consolidated taxable income purposes.arrow_forwardScenario Bradburn Corporation was formed five years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Bradburn and is its current president. The corporation has been successful, but it currently is experiencing a shortage of funds. On June 10, 2026, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,000 notes, which are due on June 30, 2026, and September 30, 2026. Another note of $6,000 is due on March 31, 2027, but he expects no difficulty in paying this note on its due date. Brown explained that Bradburn’s cash flow problems are due primarily to the company’s desire to finance a $300,000 plant expansion over the next two fiscal years through internally generated funds. Review the attached income statement and balance sheet for the company and repond to the following questions: Calculations Calculate the current ratio for fiscal years 2025 and 2026. Calculate the…arrow_forwardSplish Company reported the following amounts in the stockholders' equity section of its December 31, 2024, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 1,800 shares issued) $180,000 Common stock, $5 par (94,000 shares authorized, 18,800 shares issued) Additional paid-in capital Retained earnings Total 94,000 131,000 478,000 $883,000 During 2025, Splish took part in the following transactions concerning stockholders' equity. 1. 2. Paid the annual 2024 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2024. Purchased 1,500 shares of its own outstanding common stock for $43 per share. Splish uses the cost method. 3. Reissued 800 treasury shares for land valued at $36,200. 4. Issued 540 shares of preferred stock at $104 per share. 5. 6. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $41 per share. Issued the stock dividend. 7.…arrow_forward
- The following data were taken from the balance sheet accounts of Marigold Corporation on December 31, 2024. $575,000 Current assets Debt investments (trading) 567,000 Common stock (par value $10) 535,000 Paid-in capital in excess of par 139,000 Retained earnings 802,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) a. A 5% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $39. b. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. C. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of $101,000 and a fair value…arrow_forwardwhat type of hardware would a cpa use or requirearrow_forwardThe original sale of the $50 par value common shares of Swifty Company was recorded as follows: Cash Common Stock Paid-in Capital in Excess of Par Transactions: 278,400 240,000 38,400 (a) Bought 390 shares of common stock as treasury shares at $63. (b) Sold 140 shares of treasury stock at $60. (c) Sold 70 treasury shares at $68. Record the treasury stock transactions (given above) under the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)arrow_forward
- The original sale of the $50 par value common shares of Splish Company was recorded as follows: Cash Common Stock Paid-in Capital in Excess of Par 256,500 225,000 31,500 Transactions: (a) Bought 380 shares of common stock as treasury shares at $61. (b) Sold 100 shares of treasury stock at $59. (c) Sold 50 treasury shares at $67. Record the treasury stock transactions (given above) under the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)arrow_forwardIndicate the principal effects of a stock dividend versus a stock split on the issuing corporation. Respond in the spaces as follows: Change and No Change. Number of Shares Outstanding Par Value per Share Total Par Outstanding Stock Dividend Stock Split Retained Earnings Total Stockholders' Equity Composition of Stockholders' Equity > > > >arrow_forwardThe following information has been taken from the ledger accounts of Metlock Corporation. Total income since incorporation $298,000 Total cash dividends paid 55,000 Total value of stock dividends distributed 30,000 Gains on treasury stock transactions 18,000 Unamortized discount on bonds payable 34,000 Determine the current balance of retained earnings. Current balance of retained earnings $arrow_forward
- what is meant by restrictions on retained earnings?arrow_forwardAs you can see below, a tutor explained that Row 25 shows current portion of long-term debt at $1,381 but I am not seeing this. So, can someone break down where they are receiving this figure? It's literally the only thing I am stuck on. Step 1: Locate the Long-term Debt on the Balance Sheet In the 2021 Balance Sheet: Row 30: "Long-term debt" = $9,413 millionThis value represents the non-current portion of long-term debt — i.e., the amount not due within the next year. Step 2: Locate the Current Portion of Long-term Debt Row 25: "Current portion of long-term debt" = $1,381 million (WHERE???????)This refers to the portion of long-term debt that will mature within the next 12 months, and therefore, it is classified under current liabilities.arrow_forwardJenny D's Salon was petitioned into bankruptcy involuntarily on August 2, Year 3 and received an order of relief on August 26, Year 3. The claims and expenses against Jenny D's Salon estate are as follows: Claims and expenses: Fees earned by the bankruptcy trustee $10,000 Fees earned by the bankruptcy attorney 4,000 Claims by unsecured general creditors 22,000 Claims by Skin Buff, Inc., Jenny D's Salon's skin care supplier for supplies ordered on August 10 and shipped August 15 1,000 Claims by employee Lisa for wages earned within 90 days of filing 3,000 Claims by employee Lisa for benefits earned within 120 days of filing 2,000 Claims by State tax authorities for the year-end of Year 1 1,000 For each claimant below, enter the dollar amount that will be distributed. After all assets are liquidated, $32,000 will be available for distribution. A B 1 How much will the bankruptcy attorney receive? 2 How much will Lisa receive?…arrow_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
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY