Adirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,570, direct labor of $500, and manufacturing overhead of $350. August data for the Bottling Department is as follows: Beginning Work-in- Process Inventory 40% Complete Production started Transferred out Ending Inventory 60% complete Units Adirondack Mountain Springs Direct Direct Materials Labor Transferred In 4,000 $1,570 $500 Manufacturing Overhead $350 166,000 $132,200 $33,000 $33,500 $22,340 150,000 20,000 Total Costs $2,420 $221,040 Prepare the production cost report for the Bottling Department for August. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

Adirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,570, direct labor of $500, and manufacturing overhead of $350. August data for the Bottling Department is as follows: Beginning Work-in- Process Inventory 40% Complete Production started Transferred out Ending Inventory 60% complete Units Adirondack Mountain Springs Direct Direct Materials Labor Transferred In 4,000 $1,570 $500 Manufacturing Overhead $350 166,000 $132,200 $33,000 $33,500 $22,340 150,000 20,000 Total Costs $2,420 $221,040 Prepare the production cost report for the Bottling Department for August. (Round your answers to two decimal places when needed and use rounded answers for all future calculations).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 20E: Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through...

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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.
Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. The cost of goods transferred out for the year is: a. 4,471,200 b. 3,571,200 c. 3,780,000 d. 3,024,000
Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes the ingredients required for the drinks. The following data are for April: Direct materials are added throughout the process. Ending inventory is 60 percent complete with respect to direct labor and overhead. Required: 1. Why would a manager want a production report? 2. Prepare a production report for the Mixing Department for April.
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: With respect to conversion costs. Required: 1. Prepare a physical flow schedule for July. 2. Prepare an equivalent units schedule for July using the weighted average method. 3. What if you were asked to calculate the FIFO units beginning with the weighted average equivalent units? Calculate the weighted average equivalent units by subtracting out the prior-period output found in BWIP.
Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: With respect to conversion costs. Required: 1. Prepare a physical flow schedule for July. 2. Prepare an equivalent units schedule for July using the FIFO method. 3. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?
Using the same data found in Exercise 6.22, assume the company uses the FIFO method. Required: Prepare a schedule of equivalent units, and compute the unit cost for the month of December. 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.
Softkin Company manufactures sun protection lotion. The Mixing Department, the first process department, mixes the chemicals required for the repellant. The following data are for the current year: Direct materials are added at the beginning of the process. Ending inventory is 95 percent complete with respect to direct labor and overhead. Required: Prepare a production report for the Mixing Department for the current year.
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for September: a. All materials are added at the beginning of the process. b. Beginning work in process had 80,000 units, 30 percent complete with respect to conversion costs. c. Ending work in process had 17,000 units, 25 percent complete with respect to conversion costs. d. Started in process, 95,000 units. Required: 1. Prepare a physical flow schedule. 2. Compute equivalent units using the weighted average method. 3. Compute equivalent units using the FIFO method.
Production information shows these costs and units for the smoothing department in August. All materials are added at the beginning of the period. The ending work in process is 30% complete as to conversion. What is the value of the inventory transferred to finished goods and the value of the WIP inventory at the end of the month?
Adirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,500, direct labor of $520, and manufacturing overhead of $360.August data for the Bottling Department is as follows:Adirondack Mountain Springs Units Transferred In Direct Materials Direct Labor Manufacturing Overhead Total Costs Beginning Work-in-Process Inventory 50% Complete 4,000 $1,500 $520 $360 $2,380 Production started 166,000 $133,400 $32,400 $33,300 $22,910 $222,010 Transferred out 150,000 Ending Inventory 60% complete 20,000 Prepare the production cost report for the Bottling Department for August.(Round your answers to two decimal places when needed and use rounded answers for all…