Concept explainers
Answer questions on costs and production. (LO 5), AP
The ledger of Hasgrove Company has the following work in process account.
Production records show that there were 800 units in the beginning inventory. 30% complete, 1,100 units started, and 1,500 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Hasgrove uses the FIFO method to compute equivalent units.
Instructions
Answer the following questions.
(a) How many units are in process at March 31?
(b) What is the unit materials cost for March?
(c) What is the unit conversion cost for March?
(d) What is the total cost of units started in February and completed in March?
(e) What is the total cost of units started and finished in March?
(f) What is the cost of the March 31 inventory?
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Financial Accounting (11th Edition)
Principles of Accounting Volume 1
Managerial Accounting (5th Edition)
Financial Accounting
Financial Accounting: Tools for Business Decision Making, 8th Edition
- K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.arrow_forwardSteinways records show their work in process Inventory had a beginning balance of $3,000 and an ending balance of $3,500. How much overhead was applied if the records also show the following:arrow_forwardKenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.arrow_forward
- Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Ă‚ Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.arrow_forwardA company has 1,500 units in ending work in process that are 30% complete after transferring out 10,000 units. All materials are added at the beginning of the process. If the cost per unit is $4 for materials and $7 for conversion, what is the cost of units transferred out and in ending work in process inventory using the weighted-average method?arrow_forwardDavis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)arrow_forward
- Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the weighted-average method and it reports the following data. Units completed in the Forming department are transferred to the Painting department. Beginning work in process inventory Units started this period Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion 1,200,000 1,180,000 120,000 Units completed and transferred out Ending work in process inventory Production cost information for the Forming department follows. Units 100,000 $ 179,200 61,200 $ 4,924,800 3,586,800 Direct materials Percent Complete $ 240,400 8,511,600 60% 80% Conversion Percent Complete 40% 30% Calculate the costs per equivalent unit of production for both direct materials and conversion for the Forming department.arrow_forwardRequired information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Fields Company has two manufacturing departments, forming and painting. The company uses the weighted average method and it reports the following unit data for the Forming department. Units completed in the forming department are transferred to the painting department. Direct Materials Percent Complete 60% Conversion Percent Complete 40% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 30,000 400,000 390,000 40,000 85% 35% Production cost information for the forming department follows. Beginning work in process Direct materials $ 50,800 19,300 $ 70,100 Conversion Costs added this period Direct materials 1,539,200 1,047,260 2,586,460 $ 2,656,560 Conversion Total costs to account for Exercise 16-6 (Algo) Weighted average: Cost per EUP and costs assigned to…arrow_forward[The following information applies to the questions displayed below] Sierra Company manufactures soccer balls in two sequential processes Cutting and Stitching All direct materiais enter production at the beginning of the cutting process. The following information is available regarding its May Inventories. Direct materials Raw materials purchased on credit Direct materials used-Cutting Direct materials used-stitching Raw materials inventory Work in process inventory-Cutting Work in process inventory-Stitching 70,500 66,700 Finished goods inventory 12,250 The following additional information describes the company's production activities for May Direct labor Direct labor-Cutting Direct labor-Stitching Factory Overhead (Actual costs) Indirect materials used Indirect labor used i Other overhead costs Factory Overhead Rates Cutting Stitching Sales $ 16,600 66,400 Beginning Inventory (a) Transferred to work in process-Stitching (b) Transferred to finished goods (c) Cost of goods sold $…arrow_forward
- AAZU is considering various costs under process costing system.  AAZU uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records:Total equivalent units of materials: 5,000Total equivalent units of conversion: 4,400Units started and completed during the period: 3,500On the basis of this information, the ending work-in-process inventory's stage of completion is: a. 40%. b. 60%. c. 70%. d. 80%. e. some other percentage not listed above.arrow_forwardRequired information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 10,500 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Cost of beginning work in process Direct materials Conversion Costs added this month Direct materials Conversion Units 2,500 10,500 9,500 3,500 Percent Complete for Direct Materials 60% $ 1,427 510 12,488 15,840 90% Percent Complete for Conversion 40% $ 1,937 28,328 40% QS 16-10 (Algo) Weighted average: Equivalent units of production LO P1 Complete this question by entering your answers in the tabs below. Required: Calculate the Assembly…arrow_forwardRequired information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 11,600 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory Units started this period. Units completed and transferred out Ending work in process inventory Cost of beginning work in process. Direct materials Conversion Costs added this month Direct materials Conversion Units Cost per Equivalent Unit of Production 2,500 11,600 Total costs + Equivalent units of production Cost per equivalent unit of production 9,500 4,600 Percent Complete for Direct Materials. 60% $ 1,059 589 QS 16-11 (Algo) Weighted average: Cost per EUP LO P1 Direct Materials 19,056 17,187 85% Percent Complete for…arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning