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CH 4 HW_w_answers - Question 1 Score 2/2'I'Ollf response...

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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 transferre...
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