Uring Co. operates free departments With the following pr ses: Cutting-This department adds 60% of the materials at the start of the process, 40% when the proces is 4/5 completed, and applies labor and overhead uniformly to production. Grinding - This department adds all the materials at the end of processing, applying conversion cost evenly throughout the process. Mixing This department adds 30% of the materials at the beginning of processing, 30% when processing is completed, and 40% at the end of the process. It applies conversion costs evenly throughout the process. Production data for the month of March of the current year follows: Quantity data: Cutting Grinding Mixing WIP, beg 10,000 8,000 6,000 Stage of Completion 3/4 4/5 1/3 Transferred to next Dep't. 42,000 44,000 46,000 WIP, end 8,000 6,000 4,000 Stage of Completion 2/5 2/3 3/4 Cost data: WIP, beg P116,100 P166,800 P223,800 Factory costs: Materials 244,800 132,000 419,400 Direct labor 226,200 249,600 282,000 FOH 113,100 124,800 141,000 Required: Prepare the cost of production report for each of the three departments.

Uring Co. operates free departments With the following pr ses: Cutting-This department adds 60% of the materials at the start of the process, 40% when the proces is 4/5 completed, and applies labor and overhead uniformly to production. Grinding - This department adds all the materials at the end of processing, applying conversion cost evenly throughout the process. Mixing This department adds 30% of the materials at the beginning of processing, 30% when processing is completed, and 40% at the end of the process. It applies conversion costs evenly throughout the process. Production data for the month of March of the current year follows: Quantity data: Cutting Grinding Mixing WIP, beg 10,000 8,000 6,000 Stage of Completion 3/4 4/5 1/3 Transferred to next Dep't. 42,000 44,000 46,000 WIP, end 8,000 6,000 4,000 Stage of Completion 2/5 2/3 3/4 Cost data: WIP, beg P116,100 P166,800 P223,800 Factory costs: Materials 244,800 132,000 419,400 Direct labor 226,200 249,600 282,000 FOH 113,100 124,800 141,000 Required: Prepare the cost of production report for each of the three departments.

Name: Mahaba Manufacturing Co. operates three departments with the followin
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Description: Mahaba Manufacturing Co. operates three departments with the following processes:Cutting - This department adds 60% of the materials at the start of the process, 40% when the processis 4/5 completed, and applies labor and overhead uniformly to produ

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 16E: Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the...

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The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production.
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?
Mazomanie Farm completed 20,000 units during the quarter and has 2,500 units still in process. The units are 100% complete with regard to materials and 55% complete with regard to conversion costs. What are the equivalent units for materials and conversion?
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.
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. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles 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?
The standard cost summary for the most popular product of Phenom Products Co. is shown as follows, together with production and cost data for the period. One gallon each of liquid lead and varnish are added at the start of processing. The balance of the materials is added when the process is two-thirds complete. Labor and overhead are added evenly throughout the process. There were no units in process at the beginning of the month. Required: Calculate equivalent production for materials, labor, and overhead. (Be sure to refer to the standard cost summary to help determine the percentage of materials in ending work in process.) Calculate materials and labor variances and indicate whether they are favorable or unfavorable, using the diagram format shown in Figure 8-4. Determine the cost of materials and labor in the work in process account at the end of the month.
The Converting Department of Tender Soft Tissue Company uses the average cost method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department.There were 1,200 units in process that were 30% complete at the end of the period.a. Determine the number of whole units to be accounted for and to be assigned costs for the period.b. Determine the number of equivalent units of production for the period.