A sporting goods manufacturer buys wood as a direct material for badminton racket. The Forming Department processes the badminton rackets, and the rackets are then transferred to the Finishing Department where a sealant is applied. The Forming Department began manufacturing 10,000 "Surefires" during the month of May. There was no beginning inventory. Costs for the Forming department for the month of May were as follows: materials...............................……………………....…….…... ..P33,000 Direct Conversion Costs ........ 17,000 A total of 8,000 rackets were completed and transferred to the Finishing Department; the remaining 2,000 rackets were still in the forming process at the end of the month. All of the Forming Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory.

A sporting goods manufacturer buys wood as a direct material for badminton racket. The Forming Department processes the badminton rackets, and the rackets are then transferred to the Finishing Department where a sealant is applied. The Forming Department began manufacturing 10,000 "Surefires" during the month of May. There was no beginning inventory. Costs for the Forming department for the month of May were as follows: materials...............................……………………....…….…... ..P33,000 Direct Conversion Costs ........ 17,000 A total of 8,000 rackets were completed and transferred to the Finishing Department; the remaining 2,000 rackets were still in the forming process at the end of the month. All of the Forming Department's direct materials were placed in process, but on average, only 25% of the conversion cost was applied to the ending work-in-process inventory.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following is a characteristic of a process cost accounting system? A. Material, Labor, and Overheads are accumulated by orders. B. Companies use this system if they process custom orders. C. Only Closing stock of work in process is restated in terms of completed units. D. Opening and Closing stock of work in process are related in terms of completed units.
Provide a description of how the job order costing and process costing methods are applied to determine accurate cost data.
Explain the flow of manufacturing costs through the inventories and into cost of goods sold.
As production takes place, all material costs are added to the: Work-in-process Inventory account Manufacturing-Overhead inventory account Cost of goods sold account Finished goods inventory account
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them. Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
During production, how are the costs in process costing accumulated?A. to cost of goods soldB. to each individual productC. to manufacturing overheadD. to each individual department
What is the purpose of the Costs Accounted For section of the production cost report?
As production takes place, all manufacturing costs are added to the: A. Manufacturing Overhead Account B. Cost of Goods Sold Account O C. Finished Goods Inventory D. Work in Process Inventory Account
In a process costing system, the purpose of a production cost report is to allocate production costs incurred in a process to which of the following? Group of answer choices To finished goods inventory To the units completed and transferred to the next process and incomplete units left in the ending work-in-process inventory account To direct costs and indirect costs To individual jobs completed during a period
Use the cost per equivalent unit to assign costs to the work completed during the period.
As production occurs, materials, direct labor, and applied manufacturing overhead are recorded in a.materials. b.cost of goods sold. c.finished goods. d.work in process.
In a process cost system, factory depreciation expense incurred is debited to ________.A. finished goods inventoryB. work in process inventoryC. manufacturing overheadD. cost of goods sold