BETTERED Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity data WIP, beg Stage of Completion Transferred to next 2,700 Assembly 1,000 Casting 500 Finishing 300 25% 50% 50% 2,900 2,800
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d. Using AVERAGE method, compute for the cost of goods sold assuming there was no beginning or ending inventory of finished goods for the month.
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- Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates: Other data for the Plate Cutting Department are as follows: Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for: a. Direct materials b. Conversion costs 3. Calculate unit costs for: a. Direct materials b. Conversion costs c. Total manufacturing 4. Provide the following information: a. The total cost of units transferred out b. The journal entry for transferring costs from Plate Cutting to Welding c. The cost assigned to units in ending inventoryBETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity data Casting Assembly Finishing WIP, beg 500 1000 300 Stage of completion 25% 50% 50% Transferred to next department 2700 2900 2800 WIP, end 800 800 400 Stage of Completion 90% 40% 50% Cost data: WIP, beg Cost from preceding dept 63150 42840 Materials 10925 40258 Direct labor 338 12426 2760 FOH 2839 12426 4140 Factory costs: Materials 146575 116480 Direct labor 16362 44408 12240 FOH 48461 44408 18360 1. Using FIFO compute for the total cost of units transferred…Using Average method compute for the Equivalent unit for Casting. BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable genereators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is trasferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it it transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity data: Casting Assembly Finishing WIP, beg 500 1,000 300 Stage of completion 25% 50% 50% TransferredtonextDept 2,700 2,900 2,800 WIP, end 800 800 400 Stage of Completion 90% 40% 50% Cost data: WIP, beg Cost from preceding dept 63,150 42,840 Materials 10,925 40,258 Direct labor 338 12,426 2,760 FOH 2,839 12,426 4,140 Factory Costs: Materials 146,575 116,480 Direct Labor 16,362 44,408 12,240 FOH…
- BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves and other component part are added. After assembly, it is transferred to the finishing department where the engine is tested. Data related to February operation are: Quantity data: Casting Assembly Finishing WIP, beg 500 1,000 300 Stage of completion 25% 50% 50% Transferred to next Dep’t 2,700 2,900 2,800 WIP, end 800 800 400 Stage of completion 90% 40% 50% Cost Data: WIP, beg Cost from Preceding Dept P63,150 P42,840 Materials P10,925 40,258 Direct Labor 338 12,426 2,760 FOH 2,839 12,426 4,140 Factory Cost: Materials 146,575 116,480…Using FIFO compute for the Equivalent unit for Finishing Department. BETTERER Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable genereators and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is trasferred to the Assembly Department, where the crank shaft, valves and other component parts are added. After assembly, it it transferred to the finishing department where the engine is tested. Data related to February operations are: Quantity data: Casting Assembly Finishing WIP, beg 500 1,000 300 Stage of completion 25% 50% 50% TransferredtonextDept 2,700 2,900 2,800 WIP, end 800 800 400 Stage of Completion 90% 40% 50% Cost data: WIP, beg Cost from preceding dept 63,150 42,840 Materials 10,925 40,258 Direct labor 338 12,426 2,760 FOH 2,839 12,426 4,140 Factory Costs: Materials 146,575 116,480 Direct Labor 16,362 44,408 12,240 FOH…XYZ Engine Corporation manufactures a single model of gasoline engine used in lawn mowers, portable generators, and pumps. The basic engine block is cast from steel and machined in the Casting Department. Then it is transferred to the Assembly Department, where the crank shaft, valves, pistons, and other components parts are added. After Assembly it is transferred to the Finishing Department where the engine is tested. The company uses a process cost system with an average cost flow assumption. Date related to June operations are: Using FIFO method compute for Equivalent unit for finishing department Total cost of units transferred out from finishing department Using average method compute for Equivalent unit for casting Cost of goods sold assuming there was no beginning or ending inventory of finished goods for the month.
- Middelton Company manufactures a product that passes through two processes: Fabrication and Assembly. The following information was obtained for the Fabrication Department for October: All materials are added at the beginning of the process. Beginning work in process had 125,000 units, 40 percent complete with respect to conversion costs. Ending work in process had 25,000 units, 20 percent complete with respect to conversion costs. Started in process, 175,000 units. Question: Suppose that the cost of direct materials in beginning work in process is $560,000 and that the direct materials cost incurred for October is $700,000. With these changes, answer the following: What is the unit materials cost for the units in BWIP? What is the unit materials cost for units produced in October? Which method, weighted average or FIFO, should be used to answer this question? Explain why the unit materials cost is not the same for weighted average and FIFO. As part of your explanation,…Brite Ideas, Incorporated, mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July: Number of lamps in beginning work in process Lamps transferred to finished goods Number of lamps in ending work in process June July 810 1,100 3,170 800 2,800 1,100 In June, the lamps in beginning work in process were approximately 90 percent complete, while those in ending work in process were only 30 percent complete. In July, the units remaining in ending work in process were 80 percent complete. All lamps in ending work in process each month are finished in the following month. Required a. For the month of June, calculate the equivalent units of production for…Xavier Corporation manufactures a plastic toy product in a two-stage production process. Plastic material is brought into the Forming Department where it is shaped. Shaped products are then moved to the Finishing Department where metal is added. Xavier uses the FIFO method in accounting for its production activities. The following data is given for the Forming Department for November: Units for November: Work in process, beginning inventory November 1 300 units Direct materials (100% complete) Conversion (40% complete) Units started in November: 2,200 units Work in process, ending inventory November 30 500 units Direct materials (100% complete) Conversion (25%) Costs for November: Work in process, beginning inventory Direct materials $7,100 Conversion $4,525 Costs added during November:…
- Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows: Beginning work in process (30% complete) Direct materials Conversion cost Total cost of beginning work in process Number of units started i Number of units completed and transferred to finished goods Ending work in process (65% complete) Current period costs: Direct materials Conversion cost Total current period costs a. Reconcile the number of physical units worked on during the period. b. Calculate the number of equivalent units. Units 124,800 c. Calculate the cost per equivalent unit. d. Reconcile the total cost of work in process. 239,000 334,400 Costs $ 188,000 340,000 $ 520,000 Required: 1. Using the weighted-average method of process costing, complete each of the following steps: $ 503,400 644,000 1,147,400Waterway Processing Company uses a weighted-average process cost system and manufactures a single product—an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows. Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.) WATERWAY PROCESSING COMPANYMixing and Cooking DepartmentProduction Cost ReportFor the Month Ended October 31 Equivalent Units Quantities PhysicalUnits Materials ConversionCosts Units to be accounted for…Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a welghted-average process cost system to collect costs in both departments. All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 87 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to materials for July? Multiple Cholce 95 79 117 107