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Chapter 04 Homework

1.

value:

10.00 points

Brady Products manufactures a silicone paste wax that goes through three processing departments- Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:

Work in Process-

Inventory, May 1 Materials Conversion Inventory, May 31

281,600

680,600

503,280

?

Cracking Department

Completed and transferred to the Blending Department

?

The May 1 work in process inventory consisted of 80,000 pounds with \$155,200 in materials cost and \$126,400 in conversion cost. The May 1 work in process inventory was 100°10 complete with respect to materials and 80o/o complete with respect to conversion. During May, 318,000 pounds were started into production. The May 31 inventory consisted of 92,000 pounds that were 100°10 complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

Required:

1. Determine the equivalent units of production for May.

Equivalent units of production

Materials

I 398000 1

Conversion

I 310400 1

2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit

Cost per equivalent unit

Materials

\$ I

2.1 1

Conversion

\$ I

1.1 1

3. Determine the cost of the units completed and transferred to the Blending Department during May.

Cost of units completed and transferred out

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~

l ~,1 references

Materials

\$ I 642600 1

Conversion

\$ I 520200 1

Total

\$ 11162800 I

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Chapter 04 Homework

2.

-'4 prov

I Question #2 (of 5)

value:

10.00 points

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Bill instaff Industries uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below:

Work in process, May 1 Cost added during May Equivalent units of production

Required:

Materials

30,800

\$186,690

2,600

\$

Labor

\$50,625

\$33,750

2,500

2,400

1. Compute the cost per equivalent unit for materials, for labor,

Cost per equivalent unit

Materials

\$ I

83.65 1

\$ I

Labor

33.751

\$

I

111.25 1

2. Compute the total cost per equivalent whole unit. (Round your final answer to 2 decimal places.

Total cost per equivalent unit

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~

1~l references

\$ I

288.65 I

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Chapter 04 Homework

3.

-'4 prov

I Question #3 (of 5)

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10.00 points

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Lindex Company uses a process costing system. The following data are available for one department for October:

Percent Completed

Units

Materials

Conversion

 Work in process, October 1 46,000 85o/o 55°/o Work in process, October 31 40,000 71°/o 48o/o

The department started 407,000 units into production during the month and transferred 413,000 completed units to the next department.

Required:

Compute the equivalent units of production for October, assuming that the company uses the weighted- average method of accounting for units and costs.

Equivalent units of production

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,,,.,~

Materials I 441400]

--

(~) references

Conversion I 432200]

----

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Chapter 04 Homework

4.

value:

10.00 points

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion.

Information on work in the first department, Cooking, is given below for May:

Production data:

Pounds in process, May 1: materials 100% complete; conversion 90o/o complete Pounds started into production during May Pounds completed and transferred to the next department Pounds in process, May 31 :

materials 60o/o complete; conversion 40% complete Cost data:

Work in process inventory, May 1:

Materials cost Conversion cost Cost added during May:

Materials cost Conversion cost

55,000

330,000

?

15,000

\$ 78,900

\$ 23,700

\$ 410,010 \$ 130,460

The company uses the weighted-average method.

Required:

1. Compute the equivalent units of production.

Equivalent units of production

Materials

I 319000 1

Conversion

I 31600-0J

Cost per equivalent unit

Materials

\$I

1.29I

Conversion

\$[

0.41 ]

3. Determine the cost of ending work in process inventory and of the units transferred out to the next department. (Omit the "\$" sign in your response.)

Cost of

Cost of units completed and transferred out

end ing work in process inventory

Materials

\$I

11610 1

\$I 411300 1

Conversion

\$I

2460 1

\$I 1511001

Total

\$I

140101

\$I 629000 1

Costs to be accounted for:

Cost Reconciliation

 ( Cost of beginning work in process inventory ( Costs added to production during the period ~)

Total cost to be accounted for

Costs accounted for as follows:

 ( Cost of ending work in process inventory ( Cost of units completed and transferred out

Total cost accounted for

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1~ 1 references

-

\$I 102600 I

I 540410 1

\$I 643010 1

\$I

14010 1

I 629000 1

\$I 643010 1

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Chapter 04 Homework

5.

value:

10.00 points

Nature's Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling.

The following incomplete Work in Process account is provided for the Blending Department for March:

March 1 balance Materials Direct labor Overhead

March 31 balance

'--

Work in Process-Blending

33,300

146,600

65,200

491,000

?

Completed and transferred to Bottling (760,000 ounces)

?

The \$33,300 beginning inventory in the Blending Department consisted of the following elements:

materials, \$8,800; direct labor, \$3,800; and overhead applied, \$20,700. Costs incurred during March in the Bottling Department were: materials used, \$44,000; direct labor, \$16,700; and overhead cost applied to production, \$103,000.

Required:

1. Prepare journal entries to record the costs incurred in both the Blend ing Department and Bottling Department during March. (Omit the "\$"sign in your response.)

a. Raw materials were issued for use in production.

b. Direct labor costs were incurred.

c. Manufacturing overhead costs for the entire factory were incurred, \$626,000. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory.)

d. Manufacturing overhead was applied to production using a predetermined overhead rate.

e. Units that were complete with respect to process ing in the Blending Department were transferred to the Bottling Department, \$662,000. f. Units that were complete with respect to processing in the Bottl ing Department were transferred to Finished Goods, \$800,000.

g. Completed units were sold on account for \$1,470,000. The cost of goods sold was \$610,000.

Items

General Journal

Debit

Credit

 a. Work in process-Blending , " IT46,6oo l Work in process-Bottling , I 44,ooo l
 ( Raw materials I 190600 1 b. Work in process-Blending 65,200 1 Work in process-Bottling 16,7001 ( Salaries and wages payable 81900 1
 c. ( Manufacturing overhead I 626000 1 ( Accounts payable I 626000 1 d. Work in process-Blending I491,000 1 Work in process-Bottling 1103,0001 ( Manufacturing overhead I 594000 1 e. ( Work in process-Bottling I 662000 1 ( Work in process-Blending I 662000 1 f. ( Finished goods I 800000 1 ( Work in process-Bottling I 800000 1 g. ( Accounts receivable 11410000 I ( Sales 11470000 1 ( Cost of goods sold I 610000 1

( Finished goods

I 610000 1

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2.

Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Blending Department's Work in Process account is

Raw materials Work in process-Bottling department Finished goods

\$210,600

\$ 52,000

\$ 28,000

After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the manufacturing overhead account.

( g

Accounts Receivable

11470000 1i

Raw Materials

 Bal. I 210600 I ( a I 190500 I Bal. I 20000 1 Work in Process - Blending Department Bal. I 33300 I ( e ~) I 662000 1

(

(

(

a

b

d

Bal.

*)

~)

~)

I 146600 I

I

65200 1

I 491000 I

I

74100 1

Work in Process - Bottling Department

Bal.

52000 1

( f

I 800000 1

----------------~~~~~~~~~----~~~

(

(

(

(

a

b

d

e

Bal.

Bal.

( f

Bal.

( c

Bal.

( g

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~

 I 44000 1 I 16100 I

*)

~)

I 103000 I

I 662000 1

I

11100 1

Finished Goods

28000 I

(_g

I 800000 1

I 218000 I

~)

I 626000 I

I

32000 1

( d

Accounts Payable

I c c

Salaries and Wages Payable

I c b

Sales

I c g

Cost of Goods Sold

I 6100ooii

1

~

i

references

~)

*)

I 610000 I

I 594000 1

I 626000 1

81900 1

11410000 I

Chapter 04 Homework