Bundle: Cornerstones of Cost Management, Loose-Leaf Version, 4th + CengageNOWv2, 1 term Printed Access Card
4th Edition
ISBN: 9781337539098
Author: Hansen
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 6, Problem 43P
Novel Toys, Inc., manufactures plastic water guns. Each gun’s left and right frames are produced in the Molding Department. The left and right frames are then transferred to the Assembly Department where the trigger mechanism is inserted and the halves are glued together. (The left and right halves together define the unit of output for the Molding Department.) In June, the Molding Department reported the following data:
- a. In the Molding Department, all direct materials are added at the beginning of the process.
- b. Beginning work in process consisted of 3,000 units, 20 percent complete with respect to direct labor and overhead. Costs in beginning inventory included direct materials, $450; and conversion costs, $138.
- c. Costs added to production during the month were direct materials, $950; and conversion costs, $2,174.50.
- d. Inspection takes place at the end of the process. Malformed units are discarded. All spoilage is considered abnormal.
- e. During the month, 7,000 units were started, and 8,000 good units were transferred out to Finishing. All other units finished were malformed and discarded. There were 1,000 units that remained in ending work in process, 25 percent complete.
Required:
- 1. Prepare a physical flow schedule.
- 2. Calculate equivalent units of production using the weighted average method.
- 3. Calculate the unit cost.
- 4. What is the cost of goods transferred out? Ending work in process? Loss due to spoilage?
- 5. Prepare the
journal entry to remove spoilage from the Molding Department.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are
attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a
welghted-average process cost system to collect costs in both departments.
All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes
in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with
respect to conversion cost. During July, the Fabrication Department completed 87 canoes and transferred them to the Waterproofing Department.
What are the Fabrication Department's equivalent units of production related to materials for July?
Multiple Cholce
95
79
117
107
Novel Toys, Inc., manufactures plastic water guns. Each gun’s left and right frames are pro-duced in the Molding Department. The left and right frames are then transferred to the Assem-bly Department where the trigger mechanism is inserted and the halves are glued together. (The
left and right halves together define the unit of output for the Molding Department.) In June,the Molding Department reported the following data:a. In the Molding Department, all direct materials are added at the beginning of the process.b. Beginning work in process consisted of 3,000 units, 20 percent complete with respect todirect labor and overhead. Costs in beginning inventory included direct materials, $450; andconversion costs, $138.c. Costs added to production during the month were direct materials, $950; and conversioncosts, $2,174.50.d. Inspection takes place at the end of the process. Malformed units are discarded. All spoilageis considered abnormal.e. During the month, 7,000 units were started, and…
Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are
attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a
weighted-average process cost system to collect costs in both departments.
All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes
in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with
respect to conversion cost. During July, the Fabrication Department completed 76 canoes and transferred them to the Waterproofing Department.
What are the Fabrication Department's equivalent units of production related to conversion costs for July?
Multiple Choice
O
O
84
106
68
96
Chapter 6 Solutions
Bundle: Cornerstones of Cost Management, Loose-Leaf Version, 4th + CengageNOWv2, 1 term Printed Access Card
Ch. 6 - What is a process? Provide an example that...Ch. 6 - Describe the differences between process costing...Ch. 6 - Prob. 3DQCh. 6 - What are transferred-in costs?Ch. 6 - Explain why transferred-in costs are a special...Ch. 6 - What is a production report? What purpose does...Ch. 6 - Can process costing be used for a service...Ch. 6 - What are equivalent units? Why are they needed in...Ch. 6 - How is the equivalent unit calculation affected...Ch. 6 - Describe the five steps in accounting for the...
Ch. 6 - Under the weighted average method, how are...Ch. 6 - Under what conditions will the weighted average...Ch. 6 - In assigning costs to goods transferred out, how...Ch. 6 - Prob. 14DQCh. 6 - What is operation costing? When is it used?Ch. 6 - Lamont Company produced 80,000 machine parts for...Ch. 6 - Lising Therapy has a physical therapist who...Ch. 6 - Fleming, Fleming, and Johnson, a local CPA firm,...Ch. 6 - During October, McCourt Associates incurred total...Ch. 6 - Tomar Company produces vitamin energy drinks. The...Ch. 6 - Apeto Company produces premium chocolate candy...Ch. 6 - Jackson Products produces a barbeque sauce using...Ch. 6 - Gunnison Company had the following equivalent...Ch. 6 - Jackson Products produces a barbeque sauce using...Ch. 6 - Morrison Company had the equivalent units schedule...Ch. 6 - Shorts Company has three process departments:...Ch. 6 - A local barbershop cuts the hair of 1,200...Ch. 6 - Friedman Company uses JIT manufacturing. There are...Ch. 6 - Lacy, Inc., produces a subassembly used in the...Ch. 6 - Softkin Company manufactures sun protection...Ch. 6 - Heap Company manufactures a product that passes...Ch. 6 - K-Briggs Company uses the FIFO method to account...Ch. 6 - The following data are for four independent...Ch. 6 - Using the data from Exercise 6.18, compute the...Ch. 6 - Holmes Products, Inc., produces plastic cases used...Ch. 6 - Dama Company produces womens blouses and uses the...Ch. 6 - Fordman Company has a product that passes through...Ch. 6 - Using the same data found in Exercise 6.22, assume...Ch. 6 - Baxter Company has two processing departments:...Ch. 6 - Tasty Bread makes and supplies bread throughout...Ch. 6 - Under either weighted average or FIFO, when...Ch. 6 - During the month of June, the mixing department...Ch. 6 - As goods are transferred from a prior process to a...Ch. 6 - During March, Hanks Manufacturing started and...Ch. 6 - Proteger Company manufactures insect repellant...Ch. 6 - Swasey Fabrication, Inc., manufactures frames for...Ch. 6 - Refer to the data in Problem 6.31. Assume that the...Ch. 6 - Hatch Company produces a product that passes...Ch. 6 - FIFO Method, Single Department Analysis, One Cost...Ch. 6 - Hepworth Credit Corporation is a wholly owned...Ch. 6 - Muskoge Company uses a process-costing system. The...Ch. 6 - Prob. 37PCh. 6 - Healthway uses a process-costing system to compute...Ch. 6 - FIFO Method, Two-Department Analysis Refer to the...Ch. 6 - Jacson Company produces two brands of a popular...Ch. 6 - Golding Manufacturing, a division of Farnsworth...Ch. 6 - Larkin Company produces leather strips for western...Ch. 6 - Novel Toys, Inc., manufactures plastic water guns....Ch. 6 - Prob. 44P
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
- Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 73 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to materials for July?arrow_forwardNoora Company manufactures quality hair care product . The ingredients are combine in the mixing department and put in 16 - ounce containers in the packaging department . The following information pertains to the mixing department for the month of May 2021 : Required: a)Develop a physical flow schedule for the mixing department for the month of May b) Calculate the unit cost for materials and conversion of the mixing department for the month of May .arrow_forwardXavier Corporation manufactures a plastic toy product in a two-stage production process. Plastic material is brought into the Forming Department where it is shaped. Shaped products are then moved to the Finishing Department where metal is added. Xavier uses the FIFO method in accounting for its production activities. The following data is given for the Forming Department for November: Units for November: Work in process, beginning inventory November 1 300 units Direct materials (100% complete) Conversion (40% complete) Units started in November: 2,200 units Work in process, ending inventory November 30 500 units Direct materials (100% complete) Conversion (25%) Costs for November: Work in process, beginning inventory Direct materials $7,100 Conversion $4,525 Costs added during November:…arrow_forward
- Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 25,960 Ending work in process units 2,360 Percent complete—ending inventory 40 % Cost Data Materials $233,640 Labor 63,248 Overhead 133,104 Total $429,992 Prepare a production cost report for the Molding Department for the month of June. ROSENTHAL COMPANYMolding DepartmentProduction Cost…arrow_forwardRosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 25,960 Ending work in process units 2,360 Percent complete—ending inventory 40 % Cost Data Materials $233,640 Labor 63,248 Overhead 133,104 Total $429,992 Determine the equivalent units of production for materials and conversion costs. Materials Conversion Costs Total equivalent units enter a number of units…arrow_forwardRosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 25,960 Ending work in process units 2,360 Percent complete—ending inventory 40 % Cost Data Materials $233,640 Labor 63,248 Overhead 133,104 Total $429,992 (a) Prepare a schedule showing physical units of production. Physical units Units to be accounted for Work in…arrow_forward
- Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 22,660 Ending work in process units 2,060 Percent complete—ending inventory 40 % Cost Data Materials $203,940 Labor 55,208 Overhead 116,184 Total $375,332 Determine the costs to be assigned to the units transferred out and in process for June. Transferred out $enter a dollar amount Work in…arrow_forwardRosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 25,960 Ending work in process units 2,360 Percent complete—ending inventory 40 % Cost Data Materials $233,640 Labor 63,248 Overhead 133,104 Total $429,992 Determine the equivalent units of production for materials and conversion costs. Materials Conversion Costs Total equivalent units enter a number of units…arrow_forwardRosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 22,000 Ending work in process units 2,000 Percent complete—ending inventory 40 % Cost Data Materials $ 198,000 Labor 53,600 Overhead 112,800 Total $ 364,400 (a) Prepare a schedule showing physical units of production. Physical units Units to be accounted for…arrow_forward
- Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below. Production Data June Beginning work in process units 0 Units started into production 22,660 Ending work in process units 2,060 Percent complete—ending inventory 40 % Cost Data Materials $203,940 Labor 55,208 Overhead 116,184 Total $375,332 Prepare a schedule showing physical units of production. Physical units Units to be accounted for Work in process,…arrow_forwardRich company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the cost of production. Two ingredients, paraffin and pigment are added at the beginning of the process and heated and mixed for several hours. After blending, the resulting product is sent to the Molding department, where it is poured into molds and cooled. The following information relates to the blending process for November: a) Work in process, November 1, had 20,000 pounds, 20% complete with respect to conversion costs. Costs associated with partially completed units with: Paraffin : $ 120,000 Pigment : $ 100,000 Direct Labour : $ 30,000 Overhead applied : $ 10,000 b) Work in process, August 31, had 30,000 pounds, 70% complete with respect to conversion costs. c) Units completed and transferred out totalled 500,000 pounds. Costs…arrow_forwardRich company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the cost of production. Two ingredients, paraffin and pigment are added at the beginning of the process and heated and mixed for several hours. After blending, the resulting product is sent to the Molding department, where it is poured into molds and cooled. The following information relates to the blending process for November: a) Work in process, November 1, had 20,000 pounds, 20% complete with respect to conversion costs. Costs associated with partially completed units with: Paraffin : $ 120,000 Pigment : $ 100,000 Direct Labour : $ 30,000 Overhead applied : $ 10,000 b) Work in process, August 31, had 30,000 pounds, 70% complete with respect to conversion costs. c) Units completed and transferred out totalled 500,000 pounds. Costs…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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