Chapter_20_Solutions_7e

Chapter_20_Solutions_7e - Chapter 20 Process Costing Quick...

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Unformatted text preview: Chapter 20 Process Costing Quick Check Answers: 1. c 3. d 5. c 7. d 9. b 2. b 4. a 6. a 8. a 10. d Explanations: 3. d. Flavorings Sugar 60% 75% CTO 8,000 E. WIP 2,000 Sugar: Completed and transferred out (8,000) + Ending work in process (2,000) = 10,000 equivalent units 4. a. Flavorings: Completed and transferred out (8,000) + Ending work in process (0) = 8,000 equivalent units 5. c. Conversion costs: Completed and transferred out (8,000) + Ending work in process (2,000 60%) = 9,200 equivalent units Chapter 20 Process Costing 221 6. a. Cost of ending work in process inventory ($1,480) = Sugar (2,000 $0.50) + Flavorings (0 $1.00) + Conversion costs (1,200 $0.40) 7. d. Transferred In Costs 70% Completed and transferred out 9,500 Ending WIP 1,500 Beginning work in process 3,000 Transferred in 8,000 Total physical units to account for 11,000 Equivalent Units (Transferred In) Completed and transferred out 9,500 9,500 Ending work in process 1,500 1,500 Total physical units accounted for 11,000 11,000 8. a. Shaping Department: Transferred-in cost: Beginning WIP $ 20 Costs added this month 200 Total costs $ 220 Equivalent units (#7) 11,000 Cost per equivalent unit $ 0.02 Accounting 7/e Solutions Manual 222 Short Exercises (5-10 min.) S 20-1 Job Order Costing System Direct materials, direct labor, and manufacturing overhead are assigned to each job. Direct materials, direct labor, and manufacturing overhead flow into a single Work in Process Inventory control account that is supported by a subsidiary ledger of job cost records, one record for each job. Costs of completed jobs are transferred directly to Finished Goods Inventory. Process Costing System Direct materials, direct labor, and manufacturing overhead are assigned to each manufacturing process. Direct materials, direct labor, and manufacturing overhead are accumulated in separate Work in Process Inventory accountsone for each manufacturing process. As units are transferred from one process to the next, the costs of those units are transferred from one Work in Process Inventory account to the next. Costs flow into Finished Goods Inventory only from the Work in Process Inventory account for the last manufacturing process. Chapter 20 Process Costing 223 (5-10 min.) S 20-2 F 1. Job order costing accumulates the costs of each process. T 2. Companies that manufacture cell phones use process costing. T 3. After the product moves through the final stage of the manufacturing process, its cost moves to finished goods inventory. F 4. Production reports summarize the costs of each job completed in a job order costing system....
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This note was uploaded on 05/05/2010 for the course BUSINESS 71395 taught by Professor Brown during the Spring '09 term at Miss. College.

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Chapter_20_Solutions_7e - Chapter 20 Process Costing Quick...

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