Sheree_Johnson_BUS340_week4_assignment - Exercise201

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Exercise 20-1 Terminology in process cost accounting Match each of the following items A through G with the best numbered description of  its purpose. a. Factory Overhead account  b. Process cost summary  c. Equivalent units of production  d. Goods in Process Inventory  e. Raw Materials Inventory account  f. Materials requisition  g. Finished Goods Inventory account ____F___ 1. Notifies the materials manager to send materials to a production  department. ____A___ 2. Holds costs of indirect materials, indirect labor, and similar costs  until assigned to production. ____D___ 3. Holds costs of direct materials, direct labor, and applied overhead  until products are transferred from production to finished goods  (or another department). ____C___ 4. Standardizes partially completed units into equivalent completed  units. ___G____ 5. Holds costs of finished products until sold to customers. ___B____ 6. Describes the activity and output of a production department for a  period. ___E____ 7. Holds costs of materials until they are used in production or as  factory overhead. Exercise 20-2 Computing equivalent units of production—weighted average Check (2) EUP for materials, 365,600 During April, the production department of a process manufacturing system completed  a number of units of a product and transferred them to finished goods. Of these  transferred units, 60,000 were in process in the production department at the  beginning of April and 240,000 were started and completed in April. April’s beginning  inventory units were 60% complete with respect to materials and 40% complete with  respect to labor. At the end of April, 82,000 additional units were in process in the  production department and were 80% complete with respect to materials and 30%  complete with respect to labor. 1. Units in beginning inventory 60,000
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Units started and completed 240,000 Total units transferred to finished goods 300,000 2. Equivalent units of production – weighted average Equivalent Units of Production Direct Direct Materials Labor 300,000 300,000 Units of ending goods in process    Direct materials, 82,000 x 80% 65,600    Direct labor, 82,000 x 30% _______  24,600 Equivalent units of production 365,600 324,600 Exercise 20-3 Costs assigned to output and inventories—weighted average Check (2) Costs accounted for, $1,666,730 The production department described in  Exercise 20-5  had $850,000 of direct  materials and $650,000 of direct labor cost charged to it during April. Also, its  beginning inventory included $118,840 of direct materials cost and $47,890 of direct  labor. 1.
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This note was uploaded on 01/16/2011 for the course BUS 340 taught by Professor Linlu during the Spring '10 term at Stratford.

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Sheree_Johnson_BUS340_week4_assignment - Exercise201

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