Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.23AE
Analyze flow of costs through inventory T-accounts (Learning Objective 1)
Golden Sun Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during April:
| 1. Direct materials used in the Packaging Department | $ 34,000 |
| 2. Costs assigned to units completed and transferred out of Mixing | $227,000 |
| 3. Direct labor incurred in the Mixing Department | $ 11,400 |
| 4. Beginning balance: Work in Process Inventory—Baking | $15,800 |
| 5 Manufacturing overhead allocated to the Baking Department | $ 78,000 |
| 6. Beginning balance: Finished Goods | $ 4,600 |
| 7 Costs assigned to units completed and transferred out of Baking | $308,000 |
| 8. Beginning balance: Work in Process Inventory—Mixing | $ 12,100 |
| 9. Direct labor incurred in the Packaging Department | $ 8,900 |
| 10. Manufacturing overhead allocated to the Mixing Department | $68,000 |
| 11. Direct materials used in the Mixing Department | $156,000 |
| 12. Beginning balance: Raw Materials Inventory | $ 23,200 |
| 13. Costs assigned to units completed and transferred out of Packaging | $385,000 |
| 14. Beginning balance: Work in Process Inventory—Packaging | $ 8,000 |
| 15. Purchases of Raw Materials | $179,000 |
| 16. Direct labor incurred in the Baking Department | $4,200 |
| 17. Manufacturing overhead allocated to the Packaging Department | $40,000 |
| 18. Cost of goods sold | $386,000 |
Note: No direct materials were used by the Baking Department.
Requirements
- 1. Post each of these transactions to the company’s inventory T-accounts. You should set up separate T-accounts for the following:
- Raw Materials Inventory
- Work in Process Inventory—Mixing Department
- Work in Process Inventory—Baking Department
- Work in Process Inventory—Packaging Department
- Finished Goods Inventory
- 2. Determine the balance at month end in each of the inventory accounts.
- 3. Assume that 3,025,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?
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LEARNING UNIT 1 REVISION EXERCISE 2
Rainbow Ltd produces two products known as Bubbles and Candy. Bubbles is manufactured in department one and Candy is manufactured in department two. The following information is available for August 2019:
STANDARD MATERIAL COSTS
Material A
R3 per kg
Material B
R4 per kg
Direct Labour
R5 per hour
STANDARD MATERIAL AND LABOUR USAGE
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Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below.
1. Which of the following represents the computation of direct materials cost per equivalent unit?
Total direct cost for the period divided by total equivalent units of direct materials.
Total equivalent units of direct materials divided by total direct cost for the period.
Total direct cost for the period divided by total units of direct materials.
Total units of direct materials divided by total direct cost for the period.
2. What is the conversion cost per equivalent unit, when the total conversion cost for the period is $1,225 and the total units of packaged drinking water produced during the same period is 5,000 gallons (70 percent complete).
$0.17 per gallon
$0.35 per gallon
$2.86 per gallon
None of these choices are correct.
Chapter 5 Solutions
Managerial Accounting (5th Edition)
Ch. 5 - (Learning Objective 1) Which of the following is...Ch. 5 - (Learning Objective 2) Conversion costs consist of...Ch. 5 - (Learning Objective 2) Which of the following is...Ch. 5 - (Learning Objective 3) Which of the following is...Ch. 5 - Prob. 5QCCh. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QCCh. 5 - Prob. 9QCCh. 5 - Prob. 10QC
Ch. 5 - Compare job costing and process costing (Learning...Ch. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 5 - Determine the physical flow of units (process...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Summarize total costs to account for (process...Ch. 5 - Prob. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Continuation of S5-16: Record journal entry and...Ch. 5 - Compute equivalent units in second department...Ch. 5 - Prob. 5.19SECh. 5 - Prob. 5.20SECh. 5 - Prob. 5.21SECh. 5 - Prob. 5.22SECh. 5 - Analyze flow of costs through inventory T-accounts...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.25AECh. 5 - Prob. 5.26AECh. 5 - Continuation of E5-26A: Journal entries (Learning...Ch. 5 - Complete the production cost report in first...Ch. 5 - Prob. 5.29AECh. 5 - Analyze costs and gross profit in a process...Ch. 5 - Prob. 5.31AECh. 5 - Compute equivalent units and assign costs...Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Exercises Group B E5-37B Analyze flow of costs...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.39BECh. 5 - Complete five-step procedure in first department...Ch. 5 - Prob. 5.41BECh. 5 - Prob. 5.42BECh. 5 - Prob. 5.43BECh. 5 - Prob. 5.44BECh. 5 - Record journal entries (Learning Objective 4)...Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Prob. 5.47BECh. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.53APCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.55APCh. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.58BPCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.60BPCh. 5 - Prob. 5.61SCCh. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.63ACTCh. 5 - Prob. 5.64ACTCh. 5 - Process costing and hybrid costing issues...
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