Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 5, Problem 13PA
Selected information from Skylar Studios shows the following:
Prepare journal entries to record the following:
- raw material purchased
- direct labor incurred
depreciation expense (hint: this is part of manufacturingoverhead )- raw materials used
- overhead applied on the basis of $0.50 per machine hour
- the transfer from department 1 to department 2
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Required to
Prepare an overhead analysis statement using the above data
Calculate suitable overhead absorption rates for the milling, assembly and spraying departments. Give your answers to one decimal places.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Required: Prepare journal entries to record the costs incurred in both the Refining Department and Blending
Department during March. Key your entries to the items (a) through (g) below. a. Raw materials used in
production. b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, S
626,000. (Credit Accounts Payable.) d. Manufacturing overhead was applied to production using a
predetermined overhead rate. e. Units completed in the Refining Department were transferred to the
Blending Department, $672,000. f. Units completed in the Blending Department were transferred to
Finished Goods, $720,000. g. Completed units were sold on account, S1, 410,000. The Cost of Goods Sold
was $660,000. 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 Refining Department's Work in Process is
given in the T-account shown above.) \table [[Raw materials.$209,600
Chapter 5 Solutions
Principles of Accounting Volume 2
Ch. 5 - Which of the following production characteristics...Ch. 5 - A process costing system Is most likely used by...Ch. 5 - Which of the following is a prime cost? A. direct...Ch. 5 - Which of the following is a conversion cost? A....Ch. 5 - During production, how are the costs in process...Ch. 5 - Which is nor needed to compute equivalent units of...Ch. 5 - What is the cost of direct labor f the conversion...Ch. 5 - What is the conversion cost to manufacture...Ch. 5 - Which of the following lists contains only...Ch. 5 - Direct material costs $3 per unit, direct labor...
Ch. 5 - Beginning inventory and direct material cost added...Ch. 5 - The initial processing department had a beginning...Ch. 5 - There were 1,000 units in ending inventory after...Ch. 5 - The costs to be accounted for consist of which of...Ch. 5 - Which of the following is the step in which...Ch. 5 - The journal entry to record the $500 of work in...Ch. 5 - Assigning indirect costs to departments is...Ch. 5 - In a process costing system, which account shows...Ch. 5 - In a process cost system, factory depreciation...Ch. 5 - Explain how process costing differs from job order...Ch. 5 - Would a pharmaceutical manufacturer use process or...Ch. 5 - Which costs are assigned using the...Ch. 5 - What is the primary purpose of process costing?Ch. 5 - What is the difference between prime costs and...Ch. 5 - Explain conversion costs using an example.Ch. 5 - Why are there conversion costs in both job order...Ch. 5 - What are equivalent units of production, and how...Ch. 5 - How can there be a different number of equivalent...Ch. 5 - Why is the number of equivalent units for...Ch. 5 - What are the four steps involved in determining...Ch. 5 - What is the weighted-average method for computing...Ch. 5 - How does process costing treat the costs...Ch. 5 - Why does each department have its own work in...Ch. 5 - March each term with its description.Ch. 5 - How is manufacturing overhead handled in a process...Ch. 5 - How are predetermined overhead rates used in...Ch. 5 - How many units were started into production in a...Ch. 5 - A company started a new product, and in the first...Ch. 5 - Given the following information, determine the...Ch. 5 - There were 1,700 units in beginning inventory that...Ch. 5 - A company has 1,500 units in ending work in...Ch. 5 - There were 2,400 units in ending work in process...Ch. 5 - How many units must be in ending inventory if...Ch. 5 - How many units must have been completed and...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - Mazomanie Farm completed 20,000 units during the...Ch. 5 - What are the total costs to account for if a...Ch. 5 - A company started the month with 8,329 units in...Ch. 5 - A production department within a company received...Ch. 5 - Production data show 35,920 units were transferred...Ch. 5 - Overhead is assigned to the manufacturing...Ch. 5 - Prepare the journal entry to record the factory...Ch. 5 - Prepare the journal entry to record the transfer...Ch. 5 - Prepare the journal entry to record the sale of...Ch. 5 - Given the following information, determine the...Ch. 5 - There were 2.000 units in beginning inventory that...Ch. 5 - A company has 100 units in ending work in process...Ch. 5 - There were 1,500 units in ending work in process...Ch. 5 - Using the weighted-average method, compute the...Ch. 5 - What are the total costs to account for if a...Ch. 5 - A company started the month with 4,519 units in...Ch. 5 - A production department within a company received...Ch. 5 - Production data show 15,200 units were transferred...Ch. 5 - Overhead is assigned to the manufacturing...Ch. 5 - Prepare the journal entry to record the factory...Ch. 5 - Prepare the journal entry to record the transfer...Ch. 5 - Prepare the journal entry to record the sale of...Ch. 5 - The following product Costs are available for...Ch. 5 - The following product costs are available for...Ch. 5 - Pant Risers manufactures bands for self-dressing...Ch. 5 - During March, the following costs were charged to...Ch. 5 - Materials are added at the beginning of a...Ch. 5 - Narwhal Swimwear has a beginning work in process...Ch. 5 - The following data show the units in beginning...Ch. 5 - The finishing department started the month with...Ch. 5 - The packaging department began the month with 500...Ch. 5 - Production information shows these costs and units...Ch. 5 - Given the following information, prepare a...Ch. 5 - Complete this production cost report:Ch. 5 - Selected information from Skylar Studios shows the...Ch. 5 - Loanstar had 100 units in beginning inventory...Ch. 5 - The following product costs are available for...Ch. 5 - The following product costs are available for...Ch. 5 - Vexar manufactures nails. Manufacturing is a...Ch. 5 - During March, the following costs were charged to...Ch. 5 - Ardt-Barger has a beginning work in process...Ch. 5 - The following data show the units in beginning...Ch. 5 - The following data show the units in beginning...Ch. 5 - The following data show the units in beginning...Ch. 5 - The finishing department started the month with...Ch. 5 - The packaging department began the month with 750...Ch. 5 - Production information shows these costs and units...Ch. 5 - Given the following information, prepare a...Ch. 5 - Selected information from Hernandez Corporation...Ch. 5 - Rexar had 1,000 units in beginning inventory...Ch. 5 - How would process costing exist in a service...Ch. 5 - Why are labor and manufacturing overhead grouped...Ch. 5 - How is process costing for a single manufacturing...Ch. 5 - What is different between the journal entries for...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Fraud Case 12-1
Bill and Edna had been married two years and had just reached the point where they had enough s...
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
The accounting assumption that governs given situation.
Financial Accounting (11th Edition)
Calculating certain information using the direct method (Learning Objective 4) 20-25 min. Trudeaus Marine, Inc....
Financial Accounting, Student Value Edition (5th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
Present Value, Present Value of an Ordinary Annuity, Present Value of an Annuity Due, Lease Payments/Various Co...
Intermediate Accounting
Surfing the Standards Case 2: Bonds with Detachable Warrants Companies sometimes issue bonds with detachable wa...
Intermediate Accounting (2nd Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Selected information from Hernandez Corporation shows the following: Prepare journal entries to record the following: raw material purchased direct labor incurred depreciation expense (hint: this is part of manufacturing overhead) raw materials used overhead applied on the basis of $0.50 per machine hour the transfer from department 1 to department 2arrow_forwardThe following data summarize the operations during the year. Prepare a journal entry for each transaction. A. Purchase of raw materials on account: $1,500 B. Raw materials used by Job 1: $400 C. Raw materials used as indirect materials: $50 D. Direct labor for Job 1: $200 E. Indirect labor Incurred for Job 1: $30 F. Factory utilities Incurred on account: $500 G. Adjusting entry for factory depreciation: $200 H. Manufacturing overhead applied as percent of direct labor: 100% I. Job 1 is transferred to finished goods J. Job 1 is sold: $1,000 K. Manufacturing overhead is under applied: $100arrow_forwardPremier Products Inc. has three departments and uses the process cost system of accounting. A portion of the departmental cost work sheet prepared by the cost accountant at the end of July is reproduced below. Using the data in P5-7: 1. Draft the necessary entries to charge the materials and labor costs to the appropriate work in process accounts, to apply factory overhead to work in process, and to record the transfer of costs from one department to another. 2. Prepare a statement of cost of goods manufactured for the month ended July 31.arrow_forward
- The charges to Work in ProcessAssembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Determine the following: a. The number of units in work in process inventory at the end of the period b. Equivalent units of production for direct materials and conversion c. Costs per equivalent unit for direct materials and conversion d. Cost of the units started and completed during the periodarrow_forwardAero Aluminum Inc. uses a process cost system. The records for May show the following information: Required: Prepare a cost of production summary for each department. (Hint: When preparing the Converting production summary, refer to the Rolling production summary for the costs transferred in during the month.)arrow_forwardClassify each of the following items of factory overhead as a(n) unit-level, batch-level, product-level, or facility-level cost. a. Insurance on the building b. Depreciation of building (straight-line method) c. Depreciation of machinery (units-of-production method) d. Polishing compounds e. Machine lubricants f. Wages of forklift driver g. Building rent h. Plant managers salary i. Product inspectors wages j. Product design costsarrow_forward
- The following information concerns production in the Finishing Department for May. The Finishing Department uses the weighted average method. a. Determine the number of units in work in process inventory at the end of the month. b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.arrow_forwardK-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.arrow_forwardJournalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.arrow_forward
- MountaIn Peaks applies overhead on the basis of machine hours and reports the following information: A. What is the predetermined overhead rate? B. How much overhead was applied during the year? C. Was overhead over- or under applied, and by what amount? D. What is the journal entry to dispose of the over- or under applied overhead?arrow_forwardPrimera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?arrow_forwardThe following data appeared in the accounting records of Craig Manufacturing Inc., which uses the weighted average cost method: Case 1All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process. Case 2One-half of the materials are added at the start of the manufacturing process, and the balance of the materials is added when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished and transferred during the month c. Cost of the units in process at the end of the montharrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
What is Cost Allocation? Definition & Process; Author: FloQast;https://www.youtube.com/watch?v=hLhvvHvZ3JM;License: Standard Youtube License