FIFO method, spoilage, equivalent units. Refer to the information in Exercise 18-21. Suppose MacLean Manufacturing Company uses the FIFO method of
18-21 Weighted-average method, spoilage, equivalent units. (CMA, adapted) Consider the following data for November 2017 from MacLean Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoilage is detected upon inspection at the completion of the process. Spoiled units are disposed of at zero net disposal value. MacLean Manufacturing Company uses the weighted-average method of process costing.
a Degree of completion: direct materials, 100%; conversion costs, 45%.
b Degree of completion: direct materials, 100%; conversion costs, 35%.
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Chapter 18 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Additional Business Textbook Solutions
Financial Accounting, Student Value Edition (4th Edition)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Managerial Accounting (5th Edition)
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Intermediate Accounting (2nd Edition)
Horngren's Accounting (12th Edition)
- Consider the following data for the assembly division of Stiles Watches Company: The assembly division uses the weighted-average method of process costing. (Click the icon to view the data) Requirement Summarise total costs to account for calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work-in-process. Begin by summarising the total costs to account for. (Complete the necessary drop downs. Fill in the relevant cells with its corresponding figures) Total Direct Materials Conversion Costs Production Costs Total costs to account for Data table Beginning work-in-process (1 May) Started in May, this year Completed during May, this year Ending work-in-process (31 May) Total costs added during May, this year (Click the icon to view the equivalent unit computation.) Physical Units (Watches) 100 525 480 145 "Degree of completion direct materials, 90%; conversion costs, 40% Degree…arrow_forward[The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory. Beginning work in process inventory. Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost per equivalent unit of production Units Total costs + Equivalent units of production (from part 1) Cost per equivalent unit of production 78,000 876,000 760,000 194,000 $ 496,080 87,640 3,319,920 1,665, 160 Direct Materials. Percent Complete 100% 100% 2. Compute cost per equivalent unit of production for both direct materials and conversion. Costs EUP $ 583,7: 4,985,0…arrow_forwardClassic Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Classic uses the weighted-average method of process costing. The following information for June 2017 is available. Read the requirements2. Requirement 1. Calculate equivalent units of transferred-in costs, direct materials, and conversion costs. (Enter a "0" for any zero balances.) Equivalent Units Physical Units Transferred-In Direct Conversion (tons) Costs Materials Costs Work in process, beginning inventory (June 1) 100 Transferred in during June 165 To account for Completed and transferred out during June 200 Work in process, ending inventory (June 30) 65…arrow_forward
- Central Perk, LLC, a manufacturer of coffee beans, is considering switching its operations to an Activity Based Costing system. The following manufacturing overhead activities and cost drivers have been identified: Activity. Machine setup Machine assembly Product inspection Product movement General factory Cost Driver Number of machine setups Machine hours logged Inspection hours logged Number of moves Machine hours logged Based on the above descriptions, which of the following correctly pairs the activity with its appropriate cost level? O A. Product Inspection... batch level cost OB. Product Movement... facility level cost O C. Machine Assembly... unit level cost O D. General Factory... batch level cost O E. Machine Setup... unit level costarrow_forward[The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost assignment-Weighted average Completed and transferred out Direct materials Conversion Ending work in process Direct materials Conversion Total costs accounted for Units EUP 78,000 876,000 760,000 194,000 $ 496,080 87,640 3,319,920 1,665, 160 Direct Materials. Percent Complete 100% 3. Assign costs to the department's output-specifically, to the units transferred out and to…arrow_forwardProration of overhead. (Z. Iqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017:arrow_forward
- Smart Toys Corporation makes interlocking children's blocks in a single processing department. Direct materials are added at the start of production. Conversion costs are added evenly throughout production. Smart Toys uses the weighted-average method of process costing. The following information for October 2017 is available. the icon to view the cost information.) Read the requirements3. Requirement 1. Summarize total costs to account for and calculate cost per equivalent unit for direct materials and conversion costs. Begin by summarizing the total costs to account for. Total Direct Conversion Production Costs Materials Costs (1) (2) Total costs to account for Now calculate cost per equivalent unit for direct materials and conversion costs. (Round the cost per equivalent unit amounts to the nearest cent.) Direct Conversion…arrow_forwardPlease analyze and compute the problems attached on the photos below.Requirements: Compute the equivalent unit of production for direct materials, direct labor and overhead. Prepare a cost of productin report for the Curing Department for May 2018 using the FIFO method of process costing.arrow_forward! Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Cost per equivalent unit of production Units Total costs + Equivalent units of production (from part 1) Cost per equivalent unit of production 67,000 893,000 770,000 190,000 $ 499,200 88,400 3,340,800 1,679,600 Direct Materials Percent Complete 100% 100% Costs EUP Conversion Percent Complete 80% $ 587,600 2. Compute cost per equivalent unit of production…arrow_forward
- Transferred-in costs, weighted-average method. Trendy Clothing, Inc. is a manufacturer of winter clothes. It has a knitting department and a nishing department. This exercise focuses on the nishing department. Direct materials are added at the end of the process. Conversion costs are added evenly during the process. Trendy uses the weighted-average method of process costing. The following information for June 2017 is available.arrow_forwardNormal costing, overhead allocation, working backward. Gardi Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for 2017:arrow_forwardKulka Corporation manufactures two products: Product F82D and Product T05P. The company uses a plantwide overhead rate based on direct labor hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products F82D and T05P. Activity Cost Pool Activity Measure Total Cost Total Activity Machining.......................... Machine-hours $180,000 9,000 MHs Machine setups.................. Number of setups $125,000 250 setups Product design.................. Number of products $44,000 2 products General factory.................. Direct labor-hours $260,000 10,000 DLHs Activity Measure Product F82D Product T05P Machine-hours................. 5,000 4,000 Number of setups........... 160 90 Number of…arrow_forward
- Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning