FUNDAMENTALS OF COST ACCT.(LL) >CUSTOM<
5th Edition
ISBN: 9781259912733
Author: LANEN
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 8, Problem 55P
Prepare a Production Cost Report: Weighted-Average Method, Missing Data Saline Solutions uses
Required
- a. Assume that Saline Solutions used weighted-average process costing and that the cost per equivalent unit for May for materials in Department S is $7.20 and for conversion costs it is $3.20. How complete is ending inventory with respect to conversion costs?
- b. What is the cost of product transferred out of Department S for May?
- c. What is the cost of ending inventory in Department S for May?
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[The following information applies to the questions
displayed below.]
Victory Company uses weighted average process costing.
The company has two production processes. Conversion
cost is added evenly throughout each process. Direct
materials are added at the beginning of the first process.
Additional information for the first process follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory.
Beginning work in process inventory.
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Cost per equivalent unit of production
Units
Total costs
+ Equivalent units of production (from part 1)
Cost per equivalent unit of production
78,000
876,000
760,000
194,000
$ 496,080
87,640
3,319,920
1,665, 160
Direct
Materials.
Percent
Complete
100%
100%
2. Compute cost per equivalent unit of production for both direct
materials and conversion.
Costs
EUP
$ 583,7:
4,985,0…
Weighted Average Method, Two-Department Analysis, Change inOutput Measure
Healthway uses a process-costing system to compute the unit costs of the minerals that it pro-duces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of
the process all materials are added and the ingredients for the minerals are measured, sifted, andblended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottlereceives 50 capsules.
Required:1. Prepare a production report for the Mixing Department using the weighted average method.Follow the five steps outlined in the chapter. Round unit cost to three decimal places.
2. Prepare a production report for the…
Fact Pattern:
These data are based on the processing operations of HDG Enterprises. Assume that process conversion costs are uniform, but certain materials are added at different points in the process. Material 1 is added at the beginning of the process. The transferred-in costs are added at the 20% point in the process. Material 2 is added uniformly from the 50% to the 70% points in the process. Material 3 is added at the 75% point in the process, and Material 4 is added uniformly at the 90% to the 100% points in the process. The January BWIP was 10,000 units 60% complete, 60,000 units were added, and EWIP was 20,000 units 95% complete.
Question
What was the number of Material 2 EUP for the month?
FIFO
Weighted Average
A.
50,000
60,000
B.
60,000
70,000
C.
65,000
70,000
D.
63,000
67,000
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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