A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming department processes the baseball bats, and transfers the bats to the Finishing department where additional work is applied. The Forming department began manufacturing 10,000 bats during the month of May. There was no beginning inventory. Costs for The Forming department for the month of May follows: Direct materials Conversion costs P 33,000 17,000 A total of 8,000 bats were completed and transferred to the Finishing department, the remaining 2,000 bats were still in process at the end of the month. All of the Forming department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work in process inventory. 15. The cost allocated to units transferred to the Finishing department a P 50,000 b. P 40,000 c. P 53.000 d. P42,400 16. The cost allocated to the units in process at the end of the month a. P2,200 6. P4,000 c. P 4,800 d. P7,600

A sporting goods manufacturer buys wood as a direct material for baseball bats. The Forming department processes the baseball bats, and transfers the bats to the Finishing department where additional work is applied. The Forming department began manufacturing 10,000 bats during the month of May. There was no beginning inventory. Costs for The Forming department for the month of May follows: Direct materials Conversion costs P 33,000 17,000 A total of 8,000 bats were completed and transferred to the Finishing department, the remaining 2,000 bats were still in process at the end of the month. All of the Forming department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work in process inventory. 15. The cost allocated to units transferred to the Finishing department a P 50,000 b. P 40,000 c. P 53.000 d. P42,400 16. The cost allocated to the units in process at the end of the month a. P2,200 6. P4,000 c. P 4,800 d. P7,600

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Description: A sporting goods manufacturer buys wood as a direct material for baseball bats. TheForming department processes the baseball bats, and transfers the bats to the Finishingdepartment where additional work is applied. The Forming department beganmanufa

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.
Mimasca Inc. manufactures various holiday masks. Each mask is shaped from a piece of rubber in the molding department. The masks are then transferred to the finishing department, where they are painted and have elastic bands attached. Mimasca uses the weighted average method. In May, the molding department reported the following data: a. BWIP consisted of 15.000 units, 20% complete. Cost in beginning inventor) totaled 1,656. b. Costs added to production during the month were 26,094. c. At the end of the month, 45.000 units were transferred out to finishing. Then, 5,000 units remained in EWIP, 25% complete. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production. 3. Compute unit cost. 4. Calculate the cost of goods transferred to finishing at the end of the month. Calculate the cost of ending inventor). 5. CONCEPTUAL CONNECTION Assume that the masks are inspected at the end of the molding process. Of the 45,000 units inspected, 2,500 are rejected as faulty and are discarded. Thus, only 42,500 units are transferred to the finishing department. The manager of Mimasca considers all such spoilage as abnormal and does not want to assign any of this cost to the 42.500 good units produced and transferred to finishing. Your task is to determine the cost of this spoilage of 2,500 units and then to discuss how you would account for this spoilage cost. Now suppose that the manager feels that this spoilage cost is just part of the cost of producing the good units transferred out. Therefore, he wants to assign this cost to the good production. Explain how this would be handled. (Hint: Spoiled units are a type of output, and equivalent units of spoilage can be calculated.)
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