The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 155,000 chairs. During the month, the firm completed 185,000
Q: Kelley paint company uses the weighted average method to aacount for costs of production.…
A: The four steps in assigning cost to units completed and transferred out are (a) Summarize the…
Q: The HoneyButter Company makes flavored butter in 1 pound containers. At the beginning of March, the…
A: In the first table, information about the units is filled, like, beginning units, units started,…
Q: Honesty Manufacturing Company manufactures a standard recliner. During December, the firm’s…
A:
Q: Foamy Inc. manufactures shaving cream and uses the weighted average cost method. In November,…
A: Given that, Foamy Inc. manufactures shaving cream It uses weighted average cost method In November,…
Q: ABC Manufacturing Company manufactures a standard recliner. In December, the firm’s Assembly…
A: Equivalent Units: Equivalent units are used to express the amount of work that has been completed on…
Q: Seempleylungs Company operates three producing departments - Cutting, Sewing and Finishing. In…
A: The weighted average method is used to determine the value of cost of units transferred to finishing…
Q: Carpenter Corporation uses the weighted-average method in its process costing system. This month,…
A: Ending inventory = Beginning inventory + Units started - units transferred = 600 units + 7,800…
Q: Norfolk Engineering uses the weighted-average method in its process costing system. This month, the…
A: Equivalent units of production are the concept in the cost accounting where the number of units is…
Q: In October of the same year, Mannequin Fabrics, which started 35,000 units, had initial material…
A: The question is related to Process Costing. The details are given.
Q: Esty Corporation uses the weighted-average method in its process costing system. This month, the…
A: PLEASE LIKE THE ANSWER Equivalent units of production (EUP)- weighted average method…
Q: Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs…
A: Solution.. Beginning inventory = 15,000 units Units started in = 75,000 Units completed and…
Q: KRAFT ‘R’ US does customized, hand-crafted memorabilia, in which each batch of items is a job. The…
A:
Q: Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started…
A: Ending inventory refers to the total amount of inventory a company has kept in stock at the end of…
Q: Tyler Company uses a weighted average process costing system and started 30,000 units this month.…
A: Total units = Beginning units + Units started = 30,000 + 12,000 = 42,000
Q: The Fields Company has two manufacturing departments, forming and painting. The company uses the…
A: Please find the answers to the above questions below:
Q: Domingo Corporation uses the weighted-average method in its process costing system. This month, the…
A: Solution... Beginning inventory + units started in - units completed and transferred out. = 1,800…
Q: Fields Company has two manufacturing departments, forming and painting. The company uses the…
A:
Q: ABC Company uses a weighted average process costing system and started 36,000 units this month.…
A: The equivalent unit under the weighted average method is the sum of units completed and ending work…
Q: how i can i calculated answer for this problem? nnenbaum Corporation uses the weighted-average…
A: Total equivalent units for conversion costs = A + (B - C) (A) units transferred out to the next…
Q: Darden Corporation uses the weighted-average method in Its process costing system. The first…
A: Conversion costs includes direct labor cost and overheads cost incurred by manufacturing entity for…
Q: fridi Corporation uses the weighted-average method in its process costing system. The Assembly…
A: Equivalents units for production: The activity of a processing department in terms of fully…
Q: Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning…
A: First, calculate the equivalent units:
Q: Darden Corporation uses the weighted-average method in its process costing system. The first…
A: Darden Corporation: Unit transferred out = Beginning WIP + Unis Started - Ending WIP Unit…
Q: Kelley paint company uses the weighted average method to account for costs of production. Kelley…
A: Introduction: Process costing is a method for assigning costs of manufacturing to the units…
Q: Samahan, Inc. manufactures a highly sensi method. In costing finished goods, the unit costs for…
A: The answer is stated below:
Q: The actual total cost of direct materials used in production during July, to the nearest dollar, was
A: Direct material cost variance: direct material variance is variance analysis done by the company to…
Q: Gunes Corporation uses the weighted-average method in its process costing system. This month, the…
A: Process costing: It is a type of costing method, where the direct costs are accumulated and indirect…
Q: Gunes Corporation uses the weighted-average method in its process costing system. This month, the…
A: Equivalent units means how much completed units are done in a particular period. Conversion costs…
Q: The Assembly Department of Binary, Inc., a manufacturer of computers, had a beginning inventory of…
A: Inventory of 5,000 units. Assembled 8,000 units The amount of indirect materials is $250,000 and…
Q: Swiss Furniture Company manufactures bookshelves and uses an activity-based costing system to…
A: Total manufacturing cost per bookshelf = Direct materials cost per bookshelf + Materials handling…
Q: Turnt Company manufactures spray cans of insect repel lent. During August 1, 2010, the company had…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly…
A: Ending equivalent units for conversion costs = Ending units x % of completion = 18000 x 45% = 8,100…
Q: Gunes Corporation uses the weighted-average method in its process costing system. This month, the…
A: Beginning units 2,800 Add: Units started 10,500 Total units 13,300 Less: Units…
Q: Narwhal Swimwear has a beginning work in process inventory of 14,500 units and transferred in…
A: The cost of materials used to make a product or provide a service is known as material cost. All…
Q: The Rest-a-Lot Chair Company manufacturers a standard recliner. During February, the firm's Assembly…
A: The term "equivalent units of production" refers to the work-in-process stock at the conclusion of…
Q: XYZ Co. uses a 5,000 square foot factory space that it rents for $3,500 a month for all its…
A: Solution: Factory overhead is defined as the costs incurred during the procedure of manufacturing,…
Q: The Bedrock Company is a manufacturer of golf clothing. During the month, the company cut and…
A: a. Date Particulars Debit (P) Credit (P) a. Work in process 1,24,00,000…
Q: Jane Industries manufactures plastic toys. During October, Jane's Fabrication Department started…
A: Under weighted average process costing, the cost of Beginning work-in-process and the cost added…
Q: Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process…
A: It is a portion of a production report that specifies what expenses a department must account for…
Q: The Assembly Department of Binary, Inc., a manufacturer of computers, had a beginning inventory of…
A: The total cost of producing a product, including raw materials and operating costs, is detailed in a…
Q: what is the total gross profit reported on the job during the month?
A: Allocation Base :— It is basis from which manufacturing Overhead is Allocated to Product.…
Q: Superior Micro Products uses the weighted-average method in its process costing system. During…
A: The equivalent in units are computed on the basis of percentage work completed during the period.
Q: Esty Corporation uses the weighted-average method in its process costing system. This month, the…
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction…
A: Formula: Direct labor rate variance =[ (Actual Rate - Standard Rate ) * Actual Hours ] OR…
Q: The Cool Company uses standard costing and has established the following direct material and direct…
A: Formula of material price variance is Material Price Variance=Standard Price per Gallon-Actual Price…
Q: The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80…
A: Activity-based costing is a technique that basically deals with allocating the cost pool to the cost…
Q: Superior Micro Products uses the weighted-average method in its process costing system. During…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Hache Corporation uses the weighted-average method in its process costing system. The first…
A: Lets understand the basics. In weighted average costing, costs are average out and applied evenly on…
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's
Assembly Department started production of 155,000 chairs. During the month, the firm completed
185,000 chairs and transferred them to the Finishing Department. The firm ended the month with
18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the
production cycle. Weighted-average costing is used by Swivel. What were the equivalent units for
conversion costs for February if the beginning inventory was 70% complete as to conversion costs
and the ending inventory was 45% complete as to conversion costs?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen is $35 per unit and $55 is used in direct labor, while the direct material for the king is $55 per unit, and the labor cost is $70 per unit. Box Springs estimates it will make 4,300 queens and 3,000 kings in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows: During the year, Petrillo had the following activity related to valve production: a. Production of valves totaled 20,600 units. b. A total of 135,400 pounds of direct materials was purchased at 5.36 per pound. c. There were 10,000 pounds of direct materials in beginning inventory (carried at 5.40 per pound). There was no ending inventory. d. The company used 36,500 direct labor hours at a total cost of 656,270. e. Actual fixed overhead totaled 110,000. f. Actual variable overhead totaled 168,000. Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year. Standard overhead rates are computed based on normal activity measured in standard direct labor hours. Required: 1. Compute the direct materials price and usage variances. 2. Compute the direct labor rate and efficiency variances. 3. Compute overhead variances using a two-variance analysis. 4. Compute overhead variances using a four-variance analysis. 5. Assume that the purchasing agent for the valve plant purchased a lower-quality direct material from a new supplier. Would you recommend that the company continue to use this cheaper direct material? If so, what standards would likely need revision to reflect this decision? Assume that the end products quality is not significantly affected. 6. Prepare all possible journal entries (assuming a four-variance analysis of overhead variances).
- Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. 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.
- Shumaker Company manufactures a line of high-top basketball shoes. At the beginning of the year, the following plans for production and costs were revealed: During the year, a total of 50,000 units were produced and sold. The following actual costs were incurred: There were no beginning or ending inventories of raw materials. In producing the 50,000 units 63,000 hours were worked, 5% more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours. Required: 1. Using a flexible budget, prepare a performance report comparing expected costs for the actual production with actual costs. 2. Determine the following: (a) Fixed overhead spending and volume variances and (b) Variable overhead spending and efficiency variances.Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
- During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following costs were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Tool SK1 is responsible for 60% of the materials cost. Calculate the unit cost for Tool SK 1 and Tool SK3, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): During the year, Haversham produced 9,800 shirts. The actual fabric purchased was 14,600 yards at 2.74 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,900 hours at 19.60 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,800 shirts. 2. Compute the total budget variances for direct materials and direct labor. 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Prepare the journal entries associated with these variances. 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Prepare the journal entries associated with these variances.During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and production hours were incurred: Required: 1. Assume that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Assume that Model A is responsible for 40% of the materials cost. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. Calculate the unit cost for the two models, using DBC. Explain when and why this cost is more accurate than the unit cost calculated in Requirement 2.
