FUNDAMENTALS OF COST ACCT.(LL) >CUSTOM<
5th Edition
ISBN: 9781259912733
Author: LANEN
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 41E
Prepare a Production Cost Report: Weighted-Average Method
Yarmouth Company produces a liquid solvent in two departments: Mixing and Finishing. Accounting records at Yarmouth show the following information for Finishing operations for February (no new material is added in the Finishing Department):
Required
Prepare a production cost report using the weighted-average method.
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The first production department of Stone Incorporated reports the following for April.
Beginning work in process inventory
Units started this period
Completed and transferred out
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Beginning work in process inventory
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Direct materials
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The production department had the cost Information below.
Required a.
Cost per equivalent unit of production: FIFO method
Costs added this period
- Equivalent units of production
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Required b
Cost assignment-FIFO
Beginning work in process
To complete beginning work in process
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80,000
422,000
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102,000
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Preparing production cost report, journalizing, second department
Refreshing Water Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $1,400, direct labor of $700, and manufacturing overhead of $330. March data for the Bottling Department follow:
Requirements
Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method.
Prepare the journal entry to record the cost of units completed and transferred out.
Post all transactions to the Work-in-Process Inventory Bottling T-account. What is the ending balance?
Required: Prepare journal entries to record the costs incurred in both the Refining Department and Blending
Department during March. Key your entries to the items (a) through (g) below. a. Raw materials used in
production. b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, S
626,000. (Credit Accounts Payable.) d. Manufacturing overhead was applied to production using a
predetermined overhead rate. e. Units completed in the Refining Department were transferred to the
Blending Department, $672,000. f. Units completed in the Blending Department were transferred to
Finished Goods, $720,000. g. Completed units were sold on account, S1, 410,000. The Cost of Goods Sold
was $660,000. Post the journal entries from (1) above to T-accounts. The following account balances
existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is
given in the T-account shown above.) \table [[Raw materials.$209,600
Chapter 8 Solutions
FUNDAMENTALS OF COST ACCT.(LL) >CUSTOM<
Ch. 8 - What are the characteristics of industries most...Ch. 8 - A manufacturing company has records of its...Ch. 8 - If costs increase from one period to another, will...Ch. 8 - What are the five steps to follow when computing...Ch. 8 - What is the distinction between equivalent units...Ch. 8 - Which method, weighted-average or FIFO, better...Ch. 8 - It has been said that a prior departments costs...Ch. 8 - The more important individual unit costs are for...Ch. 8 - Assume that the number of units transferred out of...Ch. 8 - The management of a liquid cleaning product...
Ch. 8 - We have discussed two methods for process costing,...Ch. 8 - A friend owns and operates a consulting firm that...Ch. 8 - The controller of a local firm that uses a...Ch. 8 - Throughout the chapter, we treated conversion...Ch. 8 - Consider a manufacturing firm with multiple...Ch. 8 - Prob. 16CADQCh. 8 - Would process costing work well for a service...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units: Weighted-Average Method...Ch. 8 - Compute Equivalent Units: FIFO Method Refer to the...Ch. 8 - Compute Equivalent Units Magic Company adds...Ch. 8 - Equivalent Units: Weighted-Average Process Costing...Ch. 8 - Compute Equivalent Units: Ethical Issues Aaron...Ch. 8 - Equivalent Units and Cost of Production By...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Prob. 27ECh. 8 - Compute Equivalent Units: FIFO Method Materials...Ch. 8 - Compute Equivalent Units and Cost per Equivalent...Ch. 8 - Cost Per Equivalent Unit: Weighted-Average Method...Ch. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Prob. 32ECh. 8 - Compute Costs per Equivalent Unit: FIFO Method...Ch. 8 - Prob. 34ECh. 8 - Compute Costs per Equivalent Unit:...Ch. 8 - Assign Costs to Goods Transferred Out and Ending...Ch. 8 - Prob. 37ECh. 8 - Assign Costs to Goods Transferred Out and Ending...Ch. 8 - Prepare a Production Cost Report: FIFO Method...Ch. 8 - Prepare a Production Cost Report: Weighted-Average...Ch. 8 - Prepare a Production Cost Report: Weighted-Average...Ch. 8 - Prepare a Production Cost Report: FIFO Method...Ch. 8 - Cost of Production: Weighted-Average and FIFO...Ch. 8 - Operation Costing: Ethical Issues Brokia...Ch. 8 - Prob. 45ECh. 8 - Prob. 46PCh. 8 - Prob. 47PCh. 8 - Prob. 48PCh. 8 - Prob. 49PCh. 8 - Prob. 50PCh. 8 - Prob. 51PCh. 8 - Prepare a Production Cost Report and Show Cost...Ch. 8 - Prob. 53PCh. 8 - Prob. 54PCh. 8 - Prepare a Production Cost Report: Weighted-Average...Ch. 8 - Prob. 56PCh. 8 - Prob. 57PCh. 8 - Prob. 58PCh. 8 - Prob. 59PCh. 8 - Process Costing and Ethics: Increasing Production...
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