CH 4 HW_w_answers - Question 1 Score 2/2'I'Ollf response Exercise 4-1 Process Costing Journal Entries[L01 Arizona Brick Corporation produces bricks

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Unformatted text preview: Question 1: Score 2/2 'I'Ollf response Exercise 4-1 Process Costing Journal Entries [L01] Arizona Brick Corporation produces bricks in two processing departments—Molding and Firing. Information relating to the company's operations in March follows: a. Raw materials were issued for use in production: Molding Department, $29,800; and Firing Department, $5,200. b. Direct labor costs were incurred: Molding Department. $18,900; and Firing Department. $5 ,‘i'00. . Manufacturing overhead was applied: Molding Department. $25,400; and Firing Department. $3?.500. 0 Q . Unfired. molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process costing system, the cost of the unfired, molded bricks was $8?,900. e. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company's process costing system, the cost of the finished bricks was $109,900. f. Finished bricks were sold to customers. According to the company's process costing system. the cost of the finished bricks sold was $108,300. Required: Prepare journal entries to record items (a) through (f) above. liinnit the "i" sign in youl Iesponse.l General Journal Debit Credit a. Work in process-Molding Department (3%) 29 r 600 (3%) Work in process-Firing Department (3%) 5 r 200 (3%) Raw materials (3%) 34000 (3%) b. Ehrk in process-Molding Department (3%) 18 r 900 (3%) Work in process—Firing Department (3%) 5 r 100 (3%) Wages payable (3%) 24600 (3%) C. Work in process-Molding Department (3%) 25 r 400 (3%) Work in process—Firing Department (3%) 31 , 500 (3%) Manufacturing overhead (3%) 62900 (3%) d. Work in process—Firing Department (3%) 61 r 900 (3%) Work in process-Molding Department (3%) 61 , 900 (3%) e. Finished goods (3%) 1:19r son (3%) Work in process-Firing Department. (3%) 109 , 900 (3%) f. Cost of goods sold(3%) 106,300 (3%) Finished goods [3%) 1m;r son (3%) Question 2: Score 22 'I'Ollf response Exercise 4-10 Process Costing Journal Entries [L01] Schneider Brot is a bread-baking company located in Aachen, Germany, near the Dutch border. The company uses a process costing system for its single product—a popular pumpernickel bread. Schneider Brot has two processing departments—Mixing and Baking. The T-accounts below show the flow of costs through the two departments in April (all amounts are in the currency euros): Work in Process—Mixing Balance 41'1 10.000 Transferred out F5?.000 Direct materials 325,000 Direct labor 259,000 Overhead 189.000 Work in Process—Baking Balance 4” 21 ,000 Transferred out 95,000 Transferred in T5?,000 Direct labor 118.000 Overhead 85,000 Required: Correct response Exercise -l-1 Process Costing Journal Emries [L01] Arizona Brick Corporation produces bricks in two processing departments—h relating to the company's operations in March follows: a. Raw materials were issued for use in production: Molding Department, $29,800; b. Direct labor costs were incurred: Molding Department, $18,900; and Firing Depai c. Manufacturing overhead was applied: Molding Department. $25,400; and Firing E d. Unfired. molded bricks were transferred from the Molding Department to the F the company's process costing system, the cost of the unfired, molded bricks vx e. Finished bricks were transferred from the Firing Department to the finished gc the company's process costing system, the cost of the finished bricks was $10 f. Finished bricks were soldto customers. According tothe company's process I finished bricks sold was $108,300. Required: Prepare journal entries to record items (a) through (f) above. liirmit the "‘|-" sign ii General Journal a. Work in process-Molding Department Work in process-Firing Department Raw materials in. Ehrk in process-Molding Department Work in process—Firing Department Wages payable C. Work in process-Molding Department Work in process—Firing Department Manufacturing overhead d. Work in process—Firing Department Work in process-Molding Department e. Finished goods Work in process-Firing Department. f. Cost of goods sold Finished goods Correct response Exercise 4-10 Process Costing Journal Entries [L01] Schneider Brot is a bread-baking company located in Aachen. Germany. near tl' uses a process costing system for its single product—a popular pumpernickel k processing departments—Mixing and Baking. The T-accounts below show the 1 departments in April (all amounts are in the currency euros): Work in Process—Mixing Balance 4:1 10.000 Transferred out Direct materials 325,000 Direct labor 259,000 Overhead 189.000 Work in Process—Baking Balance 4.!‘1 21 ,000 Transferred out Transferred in F5?,000 Direct labor 118.000 Overhead 85.000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April in the order of direct materials, direct labor, overhead and transfer_ {innit the "t" sign in youl response} General Journal Work in process-Mixing [4%) Raw materials inventory (4%) Work in process-Mixing (4%) Work in process—Baking [4%) Wages payab1e(4%) Work in process—Mixing [4%) Work in process-Baking [4%) Manufacturing overhead (4%] Work in process—Baking [4%) Work in process-Mixing (4%) Finished goods (4%) Work in process-Baking [4%) Debit 325, 000 [4%) 259, 0000196) 11ar 000 (4%) 139r one (4%) as, one (4%) 151, one [4%) 915, 000 (4%) Credit 325,uuu(4%) 311000 (4%) 214000 (4%) 151,uno(4%) 915, mm (4%) Prepare journal entries showing the flow of costs through the two processing I order of direct materials, direct labor, overhead and transfer. {limit the "f" sign i General Journal Work in process-Mixing Raw materials inventory Work in process-Mixing Work in process-Baking Wages payable Work in process-Mixing Work in process-Baking Manufacturing overhead Work in process-Baking Work in process-Mixing Finished goods Work in process-Baking Question 3: Score 2/2 Your response Exercise 4—14 Equivalent Units—Weighted-Average Method [L02] Gulf FisheriesI Inc.I processes tuna for various distributors. Two departments are involved—Cleaning and Packing. Data relating to pounds of tuna processed in the Cleaning Department during May are given below: Pounds Percent of Tuna Completedx Work in process, May 1 33,000 53 ‘36 Work in process, May 31 18,000 F0 ‘36 *Labor and overhead only. A total of 4?0,000 pounds of tuna were started into processing during May. All materials are added at the beginning of processing in the Cleaning Department. Required: Compute the equivalent units for May for the Cleaning Department, assuming that the company uses the weighted-average method of accounting for units. Labor a Materials Overhead Equivalent units of production 503000 [50%) 491600 (50%) Feedback: Labor 3. Materials Overhead Pounds transferred to the Packing Department during May 485,000 485,000 Work in process, May 31 Materials: 18,000 pounds x 100% complete 18,000 Labor and overhead: 18,000 pounds x F096 complete 12,500 Equivalent units of production 503,000 40?,500 Correct response Exercise 4-14 Equivalent Units—Weiglrted-Average Method [L02] Gulf Fisheries, Inc.I processes tuna for various distributors. Two department Packing. Data relating to pounds of tuna processed in the Cleaning Department duri Pounds Percent of Tuna Completedx Work in process, May 1 33,000 53 36 Work in process, May 31 18,000 T0 96 Labor and overhead only. A total of 4?0,000 pounds of tuna were started into processing during May. beginning of processing in the Cleaning Department. Required: Compute the equivalent units for May for the Cleaning Department, assuming weighted-average method of accounting for units. Labor 5: Materials Overhead Equivalent units of production 503000 491600 Question 4: Score 2/2 Your response Exercise 4—15 Equivalent Units—FIFO Method [L05] Gulf Fisheries, Inc.I processes tuna for various distributors. Two departments are involved—Cleaning and Packing. Data relating to pounds of tuna processed in the Cleaning Department during May are given below: Pounds Percent of Tuna Completed" Work in process, May 1 33,000 50 3% Correct response Exercise 4-15 Equivalent Units—FIFO Method [L05] Gulf Fisheries, Inc.I processes tuna for various distributors. Two departments Packing. Data relating to pounds of tuna processed in the Cleaning Department durin Pounds Percent of Tuna Completed" Work in process, May 1 33 ,000 50 9C: Work in process, May 31 2?,000 55 % Work in process, May 31 2?,000 55 % *Labor and overhead only. *Labor and overhead only. A total of 520,000 pounds of tuna were started into processing during May. All materials are added at the beginning of processing in the Cleaning Department. A total of 520,000 pounds of tuna were started into processing during May. a beginning of processing inthe Cleaning Department. Required: Required : Compute the equivalent units for May for the Cleaning Department, assuming that method of accounting for units. Compute the equivalent units for May for the Cleaning Department, assuming that the company uses the FIFO method of accounting for units. Labor 8‘ Labor 5 Materials Overhead Materials Overhead Equivalent units of production 520000 (50%) 532450 (50%) Equivalent units of production 520000 532450 Feedback: Labor 5 Materials Overhead To complete the beginning work in process: Materials: 33,000 pounds x (100% - 100%) 0 Labor and overhead: 33,000 pounds x (100% — 50%) 15,500 Pounds started and completed during May (520,000 pounds started — 2?,000 pounds in ending inventory) 493,000 493,000 Ending work in process: Materials: 2T,000 units x 100% complete 2T,000 Labor and overhead: 2,000 units x 55% complete 22,950 Equivalent units of production 520,000 532,450 Question 5: Score 22 Your TBSIJDIISB Exercise 4-16 {Appendix 45) Step-Down Method [L09] Exercise 4-16 {Appendix 43) Step-Down M Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Arbon Company has three service departmer five departments are presented below: Equipment Administrative Janitorial Maintenance Prep Finishing Total Administ Costs $ 3,000 $ 55,000 $ 41,000 $ 259,000 $ 495,000 $ 935,000 Costs $ F3,0i Number of employees 95 'r'0 250 1’00 350 1 ,495 Number of employees ! Square feet of space occupied 5,?00 22,500 19,000 35,000 133,000 215,500 Square feet of space occupied 5,?I Machine-hours 20,000 35,000 55,000 Machine-hours The company allocates service department costs by the step-down method inthe following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). The company allocates service department co: (number of employees), Janitorial (space occut Required: Required: Using the step-down method, allocate the service department costs to the operating departments. {Round youl answel to the nealest dollai amol It llegative alnount should be indicated by a minus sign. Leave no cells blank - be celtain to emel "0" whel evel iequiled. limit the "t" sign in youl l65|)0ll‘36.l- Usingthe step-down method, allocate the ser\ answei to the nealest dollai amou It He no cells blank - be celtain to emel ' ' Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs before allocation $ 13 , 000 (4%) $ 65, 000 (4%) $ 41, 000 (4%) $ 259, 000 (4%) $ 498, 000 (4%) $ 936 , 000 (4%) Costs before allocation $ Allocation: Allocation: Administrative —13,000(4%) 3550 (4%) 14am (4%) 3550091st 13250 (4%) Administrative Janitorial 0 (4%) -68650 (4%) 6865 (4%) 13130 (4%) 48055 (4%) Janitorial Maintenance 0 (4%) 0 (4%) ‘62455 (4%] 215409913) 40925 (4%) Maintenance Total cost after allocations $ 0 (4%) $ 0 (4%) $ 0 (4%] 55 3307709913) $ 605230 (4%) $ 936000 (4%) Total cost after allocations —$ Feedback: Service Departments Operating Departments Administrative Janitorial Maintenance Prep Finishing Total Costs before allocation $ F3,000 $ 55,000 $ 41,000 $ 259,000 $ 495,000 $ 935,000 AIIDCEIIDIT Administrative: ('r'0r‘1 .400; 250M .400; F0011 .400; (?3.000) 3.550 14.500 35.500 15.250 350.11 .400) Janitorial: (1 9.000r1 90.000; 35 .000r‘1 90.000; 0 (55.550) 5.555 13.?30 45.055 133 been so .000) Maintenance: (20.000r'55.000; SBIDUUESIDDDJ 0 0 (52.455) 21.540 40.925 Total cost after allocations $ 0 $ 0 $ 0 $ 330.??0 $ 505.230 $ 935.000 Question 5: Score 2/2 Your response Exercise 4-1? {Appendix 45) Direct Method [L03] Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs $ arson $ F1 .500 $ 39.400 $ 253.500 $ 503.?00 $ 951.000 Number of employees 50 50 340 590 3?0 1 .400 Square feet of space occupied 2.?00 11 .000 5.000 11.500 55.000 95.200 Machine-hours 5.300 29.100 3? .400 The company allocates service department costs by the step-down method inthe following order: Administrative (number of employees). Janitorial (space occupied). and Equipment Maintenance (machine-hours). Required: Assuming that the company uses the direct method rather than the step-down method to allocate service department costs. how much overhead cost would be assigned to each operating department? lRound your answer s to the near est dollar amount. Allocation amount from Service Department should be im ated by a minus sign. Leave no cells blank - be certain to enter "0"wherever required. {unit the "‘|~" sing in your responsea Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs before allocation $ 81. 900 (4%) $ 11. 500 (4%) $ 39.400 (4%) $ 253. 500 (4%) $ 508.100 (4%) $ 961. mm (4%) Allocation: Administrative —81 . 900 (4%) u (4%) 0 (4%) 54022 (4%) 33818 (4%) Janitorial Ii (4%) -11.500(4%) 0 (4%) 1014s (4%) 60152 (4%) Maintenance 0 (4%) u (4%) —39.4no (4%) 31-44 (4%) 30656 (4%) Total cost after allocations 3* 0 (4%) $ 001%) $ 0 (4%) $ 321014 (4%) $ 5339359145) s 961. mm (4%) Feedback: Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs before allocation 5 5?.900 5 i1 .500 $ 39.400 3% 253.500 $ 505.?00 $ 951.000 Allocation: Administrative: (5901950; 3?0I950) (organ) 0 o 54 .022 33 .sra Janitorial: (11 .500r75.500; 0 5550055500) (r1 .500) D 10343 50.52 Equipment Maintenance: (5.300.BF.400; 29.1008?.400) 0 0 (39.400) 5.?44 30.555 Total cost after allocations $ 0 $ 0 $ 0 $ 32?.014 $ 533.955 $ 951.000 Exercise 4-1? (Appendix 45) Direct Methor Arbon Company has three service departmer five departments are presented below: Administ Costs 5 5T.9I Number of employees Square feet of space occupied 2.?I Machine-hours The company allocates service department co: (number of employees). Janitorial (space occut Required: Assuming that the company uses the direct department costs. how much overhead cost answers to the near est dollar amount. indicated by a minus sign. Leave no cells "‘|~" sing in your response.l Costs before allocation 3% Allocation: Administrative Janitorial Maintenance Total cost after allocations Isal Question T: Score 4/4 ‘r'our TBSDDIISB Problem 4-21 Equivalent Units: Applying Costs—Weighted-Average Method [L01 L03. L04] 1-... nur- n_._..__.. . ....__ _ ..:..r. ...._u.. ...__;:_ ..:.._ :_ L...— .._.. _.4._ __1_ n....:... __.r |I_r_r:__. Correct response Problem 4-21 Equivalent Units: Applying Costs—Weighted-Arrerage Metl 1-... ntJr‘ fl_._..__.. . ....__ _ ..:..r. ...._u.. ...__;:_ ..:.._ :_ A"... .r..._.4._ llll: FVLF LUIIIHUIIY [IIGIIUIUULUIUS a [llgll-quullly [.JIHSLIL; [JIFJIS |ll L‘WU udeulLTllb‘lllS, MUURIIIQ HIIU WIUIUIIIQ. lllb‘ I‘Vk. LUTIIHWIY niallulaulures i: Tllgll-quifillly [.JIHSLIL; [.lel: "I L‘WU ueparinl Materials are introduced at various points during work in the Cooking Department. After the cooking is Materials are introduced at various points during work in the Cooking Depar completed, the materials are transferred intothe Molding Department, in which pipe is formed. completed, the materials are transferred into the Molding Department, in which pip Selected data relating to the Cooking Department during May are given below: Selected data relating to the Cooking Department during May are given below Production data: Pounds in process, May 1: materials 81% complete, conversion 85% complete T8000 Pounds started into production during May 388,000 Pounds completed and transferred to Molding ? Pounds in process, May 31: materials 80% complete, Production data: Pounds in process, May 1: materials 81% complete, conversion 85% complete T8,000 Pounds started into production during May 388,000 Pounds completed and transferred to Molding ? Pounds in process, May 31: materials 80% complete, conversion 22% complete 48,000 conversion 22% complete 48,000 Cost data: Cost data: Work in process inventory, May 1: Work in process inventory, May 1: Materials cost $ 212,080 Materials cost $ 212,080 Conversion cost $ 88,848 Conversion cost $ 88,848 Cost added during May: Cost added during May: Materials cost $ 400,000 Materials cost $ 400,000 Conversion cost $188,300 Conversion cost $ 188,300 The company uses the weighted-average method. The company uses the weighted-average method. Requirement 1: Requirement 1: Compute the equivalent units of production. Compute the equivalent units of production. Materials Conversion Materials Conversion Equivalent units of production 431208 [50%) 408180 (50%) Equivalent units of production 431200 408180 Feedback: Materials Conversion Transferred to next department" 388,000 388,000 Ending work in process: Materials: 48 ,000 units x 80% complete 38,200 Conversion: 48,000 units x 22% complete 10,?80 Equivalent units of production 43?,200 408,?80 *Unitstransferred to the next department = Units in beginning work in process + Units started into production — Units in ending work in process = 18,000 + 388 ,000 — 48 ,000 = 388 ,000 Your response Correct response Requirement 2: Requirement 2: Compute the costs per equivalent unit for May. {Round youl answel s to 2 <le¢inml plat es. {unit the "l" Compute the costs per equivalent unit for May. {Round youl .mswel s to 2 (led: sign in youl Ies|>onse.l sign in youl IesponseJ Materials Conversion Materials Conversion Cost per equivalent unit $ 1. 40 (50%) $ 0 _ 1 (50%) Cost per equivalent unit 8 1. 40 $ 0 _ 1 Feedback: Materials Conversion Cost of beginning work in process $ 212,080 $ 88,848 Cost added during the period 400 ,000 188,300 Total cost (a) $ 812,080 $ 288,148 Equivalent units of production Eb) 43?,200 408,?80 Cost per equivalent unit, (a) + Eb) $ 1.4 $ 0.? Your response Correct response Requirement 3: Requirement 3: Determine the cost of ending work in process inventory and ofthe units transferred to the Molding Determine the cost of ending work in process inventory and ofthe units transferrec Department. “limit the “‘I~" sign in youl Iesponse.l Department. “limit the “‘I~" sign in youl Iesponse.l Materials Conversion Total Materials Conver: Cost of ending work in process inventory $ 54880 (1?%J $ 1546 (1?%J $ 62426 [1?%J Cost of ending work in process inventory $ 54880 $ Cost of units completed andtransferred out $ 551280 (1?%) $ 218600 (1?%J $ 835800 [1?%J Cost of units completed and transferred out $ 551200 $ 21 Feedback: Materials Conversion Total Ending work in process inventorv: Equivalent units of production (materials: 48,000 units x 80% complete; conversion: 48,000 units x 22% complete) 38,200 10,?80 Cost per equivalent unit $ 1.4 $ 0.? Cost of ending work in process inventorv $ 54,880 $ T548 $ 82,428 Units completed and transferred out: Units transferred to the next department 388,000 388,000 Cost per equivalent unit 8 1.4 $ 0.? Cost of units completed and transferred out 8 55?,200 $ 2T8,800 $ 835,800 ‘I'our response Correct response Requirement 4: Requirement 4: Prepare a cost reconciliation between the costs determined in Requirement 3 above and the cost of beginning Prepare a cost reconciliation between the costs determined in Requirement 3 abc inventory and costs added during the period. lillmit the "l" sign in youl Ies|>0IIse.i inventorv and costs added during the period. lillmit the "l" sign in youl Iespo Cost Reconciliation Cost Reconciliation Costs to be accounted for: Costs to be accounted for: Cost of beginning work in process inventorv $ 381926 [1?%J Cost of beginning work in process inventorv $ 38192 Costs added to production during the period 596388 (1?%) Costs added to production during the period 59638 Total cost to be accounted for $ 898226 (1 T-‘%) Total cost to be accounted for $ 89822 Costs accounted for as follows: Costs accounted for as follows: Cost of ending work in process inventorv $ 62426 (1?%) Cost of ending work in process inventory 3% 6242 Cost of units completed and transferred out 835888 E1?%J Cost of units completed and transferred out 83588 Total cost accounted for $ 898226 (1 T-‘%) Total cost accounted for $ 89822 Feedback: Cost of beginning work in process inventorv = $301 ,828 ($212,080 + $88,848) Costs addedto production during the period = $588,300 ($400,000 + $188,300) Question 8: Score 4/4 1i'our response Correct response Problem 4—22 (Appendix 4A} Equivalent Units: App-lying Costs—FIFO Method [L05. L06. L01] Problem 4—22 {Appendix 414) Equivalent Units: Applying Costs—FIFO M Reutter Companv manufactures a single product and uses process costing. The company's product goes through Reutter Companv manufactures a single product and uses process costing. 'l two processing departments, Etching and Wiring. The following activity was recorded in the Etching Department two processing departments, Etching and Wiring. The following activitv was during Julv: during Julv: Production data: Production data: Units in process, Julv 1: materials 80% complete, Units in process, Julv 1: materials 80% complete, conversion 30% complete 88,000 conversion 30% complete 88,000 Units started into production 42?,200 Units started into production 42?,200 Units in process, Julv 31: materials 80% Units in process, Julv 31: materials 80% complete, conversion 40% complete 82,000 complete, conversion 40% complete 82,000 Cost data: Cost data: Work in process inventorv, Julv 1: Work in process inventorv, Julv 1: Materials cost $ 28,200 Materials cost $ 28,200 Conversion cost $ 14,500 Conversion cost $ 14,500 Cost added during Julv: Cost added during Julv: Materials cost $ 884,000 Materials cost $ 884,000 Conversion cost $ 858,400 Conversion cost $ 858,400 Materials are added at several stages during the etching process. The companv uses the FIFO method. Materials are added at several stages during the etching process. The com; Requirement 1: Requirement 1: Compute the equivalent units of production. Compute the equivalent units of production. Maharile Pnnwarsinn hflfitarinle anmreinn s 442000 (50%) Equivalent units of production $ 431600 (50%) Feedback: Materials To complete beginning work in process: Materials: 88.000 units x (100% —80%) 2? .200 Conversion: 88.000 units x (100% — 30%) Units started and completed during the period (42?.200 units started — 82.000 units in ending inventorv) 385.200 Ending work in process: Materials: 82.000 units x 80% complete 48.800 Conversion: 82.000 units x 40% complete Equivalent units of production 442 .000 Your FESIJOIISB Requirement 2: Conversion 4?.500 355.200 24.800 431.500 Compute the costs per equivalent unit for Julv. iRound your answer s to 2 decimal plat es. {unit the "t" sign in your responsed Materials Conversion Cost per equivalent unit $ 2 (50%) $ 1. 5 (50%) Feedback: Materials Conversion Cost added during the period (a) $ 884.000 $ 858.400 Equivalent units of production (b) 442.000 43?.800 Cost per equivalent unit (a) + (b) $ 2 $ 1.5 'l'Ollr IBSIJOIISE Requirement 3: Determine the cost of ending work in process inventory and of the units transferredto the Wiring Department. iijimit the "t" sign in your response.i Materials Conversion Cost of ending work in process inventorv $ 99200 (8%) $ 31200 (8%) Cost in beginning work in process inventorv $ 29200 (8%) $ 14500 (8%) Cost to complete the units in beginning inventorv $ 54400 (8%) $ 11400 (8%) Cost of units started and completed this period $ 130400 (8%) $ 541000 (8%) Cost of units transferred out Feedback: Costs of Ending Work in Process Inventorv and Units Transferred Out Materials Ending work in process inventorv: Equivalent units of production 48.800 Cost per equivalent unit 3% 2 Cost of ending work in process inventorv $ 88.200 Units transferred out: Cost in beginning work in process inventorv $ 28.200 Cost to complete the units in beginning work in process inventorv: Equivalent units of production required to complete the beginning inventorv 2T.200 Cost per equivalent unit $ 2 Cost to complete the units in beginning inventorv $ 54.400 Cost of units started and completed this period: Units started and completed this period 385.200 Cost per equivalent unit $ 2 Cost of units started and completed this period $ 80.400 Conversion 24 .800 $ 1 .5 $ 31.200 $ 1 4 .500 4'." .800 $ 1 .5 $ ?1 .400 385 .200 $ 1 .5 $ 54? .800 Total $ 136400 (8%) $ 43100 (3%) $ 125000 (3%) $ 1210200 (8%) $ 1441100 (3%) Total $ 135.400 $ 43.100 $ 125.300 $1.2rs.200 Equivalent units of production $ 442000 $ 431600 Correct response Requirement 2: Compute the costs per equivalent unit for Julv. iRoundyour answelsto 2 de- sign in your responsed Materials Conversion Cost per equivalent unit Si 2 $ 1. 5 Correct response Requirement 3: Determine the cost of ending work in process inventorv and of the units trar iiirmit the "‘|-" sign in your responsed Materials Cost of ending work in process inventorv $ 99200 Cost in beginning work in process inventorv $ 29200 Cost to complete the units in beginning inventorv $ 54400 Cost of units started and completed this period $ 130400 Cost of units transferred out Cost of units transferred out 'l'Ollf TESIJOIISB Requirement 4: $ 1 ,44?,roo Prepare a cost reconciliation between the costs determined in part (3) above and the cost of beginning inventory and costs added during the period. llirnlit the "‘|~" sign in youl Iesponse.i Costs to be accounted for: Cost of beginning work in process inventory $ 43100 (1?%) Costs added to production during the period 154 0400 E1?%) Total cost to be accounted for $ 1504100 E1T%) Costs accounted for as foi'i'ows: Cost of ending work in process inventory 136400 (1?%) Costs of units transferred out 1441100 (1?%) Total cost accounted for $ 1504100 (1?%) Feedback: Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory ($20,200 + $14,500) $ 43,?00 Costs added to production during the period [$884,000 + $555,400) 1 540,400 Total cost to be accounted for $1,584,100 Costs accounted for as follows: Cost of ending work in process inventory $ 135,400 Costs of units transferred out 1 ,44T,T00 Total cost accounted for $1,584,100 Correct response Requirement 4: Prepare a cost reconciliation between the costs determined in part (3) abovt inventory and costs added during the period. ilirmit the "‘|~" sign in _voul Iespo Costs to be accounted for: Cost of beginning work in process inventory $ 43100 Costs added to production during the period 1540400 Total cost to be accounted for $ 1504100 Costs accounted for as foi'i'ows: Cost of ending work in process inventory 136400 Costs of units transferred out 1447100 Total cost accounted for $ 1504100 Question 9: Score 4/4 Your TESDOIISE Case 4-29 Second Department—Weighted-Average Method [L02. L03. L04] Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company's accountant [who is very inexperienced) has prepared a summary of production and costs for the Forming Department for October as follows: Forming Department costs: Work in process inventory, October 1 , ?,900 units; materials 100% complete; conversion FIB complete Costs transferred in from the Mixing Department Material added during October [added when processing is 50% complete in the Forming Department) Conversion costs added during October Total departmental costs Forming Department costs assigned to: Units completed and transferred to the Stamping Department, 105,000 units at $2.858 each Work in process inventory, October 31 , 5,000 units, conversion 215 complete Total departmental costs assigned "Consists of cost transferred in, $12,000; materials cost, $4,500; and conversion costs, $13,590. $ sopso * me one 35 ,ooo 12s ,ooo $ sooooo $ 300 ,090 $ 300 ,090 After mulling over the data above, Durall's president commented, "I can‘t understand what's happening here. Despite a concentrated effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind of performance, year-end bonuses are out of the question for the people in that department" The company uses the weighted-average method in its process costing. Required: (a) Calculate the cost per equivalent units. {Round youl answels to 2 decimal places. [unit the "‘|~" Correct response Case 4-29 Second Department—Weighted-Average Method [L02. L03. l Durall Company manufactures a plastic gasket that is used in automobile eng three processing departments: Mixing, Forming, and Stamping. The compan' inexperienced) has prepared a summary of production and costs for the Formi follows: Forming Department costs: Work in process inventory, October 1, ?,000 units; materials 100% complete FIB complete Costs transferred in from the Mixing Department Material added during October (added when processing is 50% complete in Department) Conversion costs added during October Total departmental costs Forming Department costs assigned to: Units completed and transferred to the Stamping Department, 105,000 uni each Work in process inventory, October 31 , 6,000 units, conversion 215 complet Total departmental costs assigned *Consists of cost transferred in, $12,000; materials cost, $4,500; and conversioi After mulling over the data above, Durall's president commented, "I can‘t here. Despite a concentrated effort at cost reduction, our unit cost actually wen last month. With that kind of performance, year-end bonuses are out of the c department" The company uses the weighted-average method in its process costing. Required: [a] Calculate the cost per equivalent units. {Round _voul answels to 2 de- sign in youl Iesponsea Transferred in Materials Conversion Cost per equivalent unit 5 1. 08 (33%) $ 0 . 39 (33%) $ 1. 3 (33%) Feedback: Transfiermd Materials Conversion Transferred to next department 105,000 105,000 105,000 Ending work in process: Transferred in: 5,000 units x 100% complete 5,000 Materials: 5,000 units x 0% complete 0 Conversion: 5,000 units x 21‘5 complete 2.400 Equivalent units of production 111,000 105,000 10?,400 Transferred |n Materials Conversion Cost of beginning work in process 5 12,000 $ 4,500 $ 13,550 Cost added during the period 105,000 35,000 125,000 Total cost (a) $ 120,000 $ 40,500 $135,550 Equivalent units of production (b) 111,000 105,000 10?,400 Cost per equivalent unit,(a) + (b) $ 1.05 $ 0.35 $ 1.3 Yourresponse (b) How much cost have been assigned to the units completed and transferred to the Stamping Department? {Round youl answel to the neal est (IOIIJI alnollnt. [unit the "l" sign in youl Iesponsea Transferred in Materials Conversion Total Cost of units completed andtransferred am 35 113400 (25%) $ 40950 (25%) $ 136500 (25%) $ 290050 (25%) Feedback: Transferred In Materials Conversion Total Units transferred to the next 105300 105300 105300 department Cost per equivalent unit $ 1.05 $ 0.39 $ 1.3 cm m “m ampleth and $ 113.400 $ 40,950 $135,500 $ 250,550 transferred out Yourresponse (c) How much cost have been assignedto the ending work in process inventory? iLeave no cells blank - be celtain to entel "0"wl1elevel quuil ed. Round youl answel to the nealest (lollal amount. {lllli‘l the "‘|~" sign in youl Iesponse.l Transferred in Materials Conversion Total Cost of ending work in processinvemow $ 6480(25%) $ 0(25%) $ 03120(25%) $9600(25%) Feedback: Transferred In Materials Conversion Total Equivalent units of production (see above) B'DDU U 2'400 Cost per equivalent unit $ 1 .05 $ 0.35 $ 1.3 Cost of ending work In $ 5'430 $ 3 $ 3,120 $ 5,500 process inventorv sign in youl Iespons€.l Transferred in Material Cost per equivalent unit 31% 1. 08 $ 0 Correct response {In} How much cost have been assigned to the units completed and trar {Round youl answel to the neal est (IOIIJI amount. Omit the ' Trans‘ ir Cost of units completed and transferred out $ 11 Correct response (c) How much cost have been assigned to the ending work in process be teltain to entel "0"whelevel quuiled. Roundyoul ansv Omit the "l" sign in youl Iesponsti Tra Cost of ending work in process inventorv ...
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This note was uploaded on 12/16/2009 for the course ACCT 116B 00138 taught by Professor Seymour during the Fall '09 term at Mesa CC.

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CH 4 HW_w_answers - Question 1 Score 2/2'I'Ollf response Exercise 4-1 Process Costing Journal Entries[L01 Arizona Brick Corporation produces bricks

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