Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 6, Problem 5P
Green Products Inc. cans peas and uses the weighted average cost method. For the month of November, the company showed the following:
Cost data:
Each can contains 16 oz, or 1 lb, of peas.
Required:
- 1. Calculate the cost of the completed production for November.
- 2. Show the detailed cost of the ending inventory for November.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Mario’s Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: (picture chart 1)
Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for February.
Prepare separate monthly income statements for January and for February, using the following: a. Absorption costing b. Variable costing
Is operating income higher under absorption costing or variable costing in January? In February? Explain the pattern of differences in operating income based on absorption costing versus variable costing.
[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Each visor requires a total of $4.00 in direct materials that includes an adjustableclosure that the company purchases from a supplier at a cost of $1.50 each. Shadeewants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closureson June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,and variable manufacturing overhead is $1.75 per unit produced.Required:1. Determine Shadee's budgeted cost of closures purchased for May and June.2. Determine Shadee's budget manufacturing overhead for May and June. Required 1 Required 2
[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Each visor requires a total of $4.00 in direct materials that includes an adjustableclosure that the company purchases from a supplier at a cost of $1.50 each. Shadeewants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closureson June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,and variable manufacturing overhead is $1.75 per unit produced.Required:1. Determine Shadee's budgeted cost of closures purchased for May and June.2. Determine Shadee's budget manufacturing overhead for May and June. Required 1 Required 2 Complete this question by entering your answers in the tabs below.Determine Shadee's budget manufacturing…
Chapter 6 Solutions
Principles of Cost Accounting
Ch. 6 - Under what conditions may the unit costs of...Ch. 6 - When is it necessary to use separate equivalent...Ch. 6 - Why is it usually reasonable to assume that labor...Ch. 6 - If materials are not put into process uniformly,...Ch. 6 - In what way do the cost of production summaries in...Ch. 6 - Why might the total number of units completed...Ch. 6 - What is the usual method of handling the cost of...Ch. 6 - If some units are normally lost during the...Ch. 6 - How is the cost of units normally lost reflected...Ch. 6 - Prob. 10Q
Ch. 6 - What adjustment must be made if materials added in...Ch. 6 - What is the difference between the unit costs are...Ch. 6 - What advantage does the FIFO cost method have over...Ch. 6 - How would you define each of the following? a....Ch. 6 - What are three methods of allocating joint costs?
Ch. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Using the data given for Cases 13 below, and...Ch. 6 - Precision Inc. manufactures wristwatches on an...Ch. 6 - The following data appeared in the accounting...Ch. 6 - Conte Chemical Co. uses the weighted average cost...Ch. 6 - Assuming that all materials are added at the...Ch. 6 - Foamy Inc. manufactures shaving cream and uses the...Ch. 6 - Calculating unit costs; units lost in production...Ch. 6 - Sonoma Products Inc. manufactures a liquid product...Ch. 6 - A company manufactures a liquid product called...Ch. 6 - Using the data given for Cases 1–3 and the FIFO...Ch. 6 - Assume each of the following conditions concerning...Ch. 6 - Adirondack Bat Co. processes rough timber to...Ch. 6 - Computing joint costssales value at split-off and...Ch. 6 - LeMoyne Manufacturing Inc.’s joint cost of...Ch. 6 - Making a journal entryby-product Petrone Metals...Ch. 6 - Espana Co. makes one main product, Uno, and a...Ch. 6 - Manufacturing data for January and February in the...Ch. 6 - Manufacturing data for June and July in the...Ch. 6 - On December 1, Carmel Valley Production Inc. had a...Ch. 6 - Akron Manufacturing Co. manufactures a...Ch. 6 - Green Products Inc. cans peas and uses the...Ch. 6 - Monterrey Products Co. uses the process cost...Ch. 6 - Prob. 7PCh. 6 - Daytona Beverages Inc. uses the FIFO cost method...Ch. 6 - Clearwater Candy Co. had a cost per equivalent...Ch. 6 - Mt. Palomar Manufacturing Co. uses a process cost...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Otto Inc. specializes in chicken farming. Chickens...Ch. 6 - Venezuela Oil Inc. transports crude oil to its...Ch. 6 - Clark Kent Inc. buys crypton for $.80 a gallon. At...
Additional Business Textbook Solutions
Find more solutions based on key concepts
List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and p...
Auditing and Assurance Services (16th Edition)
List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and p...
Auditing And Assurance Services
1. For Frank’s Funky Sounds, straight-line depreciation on the trucks is a
Learning Objective 1
a. variable cos...
Horngren's Accounting (12th Edition)
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
Intermediate Accounting
Adjusting Journal Entries; Adjusted Trial Balance. Magic Cleaning Services (MCS) has a fiscal year-end of Decem...
Intermediate Accounting (2nd Edition)
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
- Chassen Company, a cracker and cookie manufacturer, has the following unit costs for the month of June: A total of 100,000 units were manufactured during June, of which 10,000 remain in ending inventory. Chassen uses the first-in, first-out (FIFO) inventory method, and the 10,000 units are the only finished goods inventory at June 30. Under the absorption costing concept, the value of Chassens June 30 finished goods inventory would be: a. 50,000. b. 70,000. c. 85,000. d. 145,000.arrow_forwardClick the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.arrow_forwardOrman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported the following: Last year, Orman produced 89,000 units and sold 90,500 units at 10.50 per unit. Required: 1. Prepare a statement of cost of goods manufactured. 2. Prepare an absorption-costing income statement.arrow_forward
- For each of the following independent situations, calculate the missing values: 1. The Belen plant purchased 78,300 of direct materials during June. Beginning direct materials inventory was 2,500, and direct materials used in production were 73,500. What is ending direct materials inventory? 2. Forster Company produced 14,000 units at an average cost of 5.90 each. The beginning inventory of finished goods was 3,422. (The average unit cost was 5.90.) Forster sold 14,120 units. How many units remain in ending finished goods inventory? 3. Beginning work in process (WIP) was 116,000, and ending WIP was 117,300. If total manufacturing costs were 349,000, what was the cost of goods manufactured? 4. If the conversion cost is 84 per unit, the prime cost is 55, and the manufacturing cost per unit is 105, what is the direct materials cost per unit? 5. Total manufacturing costs for August were 412,000. Prime cost was 64,000, and beginning WIP was 76,000. The cost of goods manufactured was 434,000. Calculate the cost of overhead for August and the cost of ending WIP.arrow_forwardOttis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?arrow_forwardMurphy’s Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company’s first two months in business: The table shows the following data with cost in dollars: Sales January: 1,400 meals February: 1,600 meals Production January: 2,000 meals February: 1,400 meals Variable manufacturing expense per meal January: 5 February: 5 Sales commission expense per meal January: 1 February: 1 Total fixed manufacturing overhead January: 700 February: 700 Total fixed marketing and administrative expenses January: 500 February: 500 Requirements 1. Compute the product cost per meal produced under absorption costing and under variable costing. Do this first for January and then for…arrow_forward
- [The following information applies to the questions displayed below.]Shadee Corp. expects to sell 650 sun visors in May and 420 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 55 units. 6. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 27 closures on hand on May 1, 21 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $7 per hour. Required: Compute the Shadee’s budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)arrow_forward[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 550 sun visors in May and 450 in June. Each visor sells for $26. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 55 units. Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 27 closures on hand on May 1, 17 closures on May 31, and 21 closures on June 30 and variable manufacturing overhead is $0.75 per unit produced. Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $10 per hour. Required: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $7.) 2. Compute the Shadee’s budgeted cost of goods sold for May and June.arrow_forward[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 650 sun visors in May and 430 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 22 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 8 percent of sales. Fixed administrative expenses per month total $1,400. Required:Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume…arrow_forward
- Louie's Meals produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months inbusiness: January February Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan 1,600 meals Feb 1,900 meals Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jan 2,000 meals Feb 1,600 meals Variable manufacturing expense per meal. . . . . . . . . . Jan $4 Feb $4 Sales commission expense per meal. . . . . . . . . . . . . . Jan $1 Feb $1 Total fixed manufacturing overhead. . . . . . . . . . . . . Jan $800 Feb $800 Total fixed marketing and administrative expenses. . Jan $300 Feb $300 Requirement 1. Compute the product cost per meal…arrow_forwardPonderosa, Inc., produces wiring harness assemblies used in the productionof semi-trailer trucks. The wiring harness assemblies are sold to various truckmanufacturers around the world. Projected sales in units for the coming fivemonths are given below. January 10.000 February 10.500 March 13.000 April 16.000 May 18.500 The following data pertain to production policies and manufacturingspecifications followed by Ponderosa:a. Finished goods inventory on January 1 is 900 units. The desired endinginventory for each month is 20 percent of the next month's sales.b. The data on materials used are as follows: Direct material Per unit usage Unit cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at thebeginning of the month to satisfy 30 percent of the next month'sproduction needs. This is exactly the amount of material…arrow_forwardPonderosa, Inc., produces wiring harness assemblies used in the productionof semi-trailer trucks. The wiring harness assemblies are sold to various truckmanufacturers around the world. Projected sales in units for the coming fivemonths are given below. January 10.000 February 10.500 March 13.000 April 16.000 May 18.500 The following data pertain to production policies and manufacturingspecifications followed by Ponderosa:a. Finished goods inventory on January 1 is 900 units. The desired endinginventory for each month is 20 percent of the next month's sales.b. The data on materials used are as follows: Direct material Per unit usage Unit cost Part #K298 2 $4 Part #C30 3 7 Inventory policy dictates that sufficient materials be on hand at thebeginning of the month to satisfy 30 percent of the next month'sproduction needs. This is exactly the amount of material…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
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
INVENTORY & COST OF GOODS SOLD; Author: Accounting Stuff;https://www.youtube.com/watch?v=OB6RDzqvNbk;License: Standard Youtube License