Calculate the Packaging Department’s equivalent units for transferred-in, direct materials and conversion costs (respectively) using the FIFO method of process costing
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Chem Corp. manufactures bottles of hand sanitizer. The liquid sanitizer is manufactured in the Manufacturing Department. When manufacturing is complete, the liquid sanitizer is then transferred to the Packaging Department where the liquid is bottled, labeled, and packed into cases for shipping. In the Packaging Department, direct materials are added when the process is 60% complete; conversion costs are added evenly throughout.
For the current period the Manufacturing Department transferred 200,000 liquid units to the Packaging Department. Beginning work in process in the Packaging Department included 50,000 units that were 40% complete as to conversion. Ending inventory totaled 20,000 units that were 20% complete as to conversion in the Packaging Department.
- Calculate the Packaging Department’s equivalent units for transferred-in, direct materials and conversion costs (respectively) using the FIFO method of
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- Tamar Co. manufactures a single product in two departments: Forming and Assembly. All direct materials are added at the beginning of the forming process. Conversion costs are added evenly throughout each process. During May, the Forming department started 21,600 units, and completed and transferred 22,200 units of product to the Assembly department. The Forming department’s 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department. Required 1. Prepare the Forming department’s process cost summary for May using the weighted-average method. 2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly. Analysis Component 3. The costing process…The Converting Department of Soft Touch Towel and Tissue Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 2,000 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.Diamond Inc. manufactures jewelry. The company has two departments, Assembly and Polishing. For the Polishing Department, material is added when the process is 80% complete. Work happens evenly throughout the process, so Conversion Costs are added evenly to the product. Once assembly is complete, the jewelry pieces are immediately transferred to the Polishing Department. Once the polishing is complete, the final product is transferred to Finished Goods Inventory. Data for the Polishing Department is as follows: Equiv Units Ending Equiv Units Open WIP New Costs Transferred-In 200 60 $250 $15,050 Direct Materials 140 - $500 $1,500 Conversion Costs 182 42 $1,250 $4,000 Actual units Ending Inventory 60 Units Transferred out 140 Provide calculations in good form for the costs per equivalent units and the total cost reconciliation for the department. If Diamond…
- Woolens Corp. manufactures bolts of wool cloth. The wool cloth is cut and manufactured in the Manufacturing Department. When manufacturing is complete, the bolts of cloth are then transferred to the Inspection Department. In the Inspection Department the bolts of wool cloth pass through various quality control tests. Direct materials for inspecting the wool cloth are added when the inspection process is 90% complete; conversion costs are added evenly throughout. For the current period the Manufacturing Department transferred 25,000 units to the Inspection Department. Beginning work in process in the Inspection Department included 4,000 units that were 70% complete as to conversion. Ending inventory totaled 9,000 units that were 20% complete as to conversion. a. Calculate the Inspection Department's equivalent units for transferred-in, direct materials and conversion costs (respectively) using the FIFO method of process costing.The Converting Department of Comfy Touch Towel and Tissue Company had 680 units in work in process at the beginning of the period, which were 40% complete. During the period, 14,400 units were completed and transferred to the Packing Department. There were 760 units in process at the end of the period, which were 75% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue Company Number of Equivalent Units of Production Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total Whole Units Direct Materials Equivalent Units 100000 100000 Conversion Equivalent Units ☐☐☐☐☐The Converting Department of Comfy Touch Towel and Tissue Company had 2,600 units in work in process at the beginning of the period, which were 35% complete. During the period, 23,800 units were completed and transferred to the Packing Department. There were 7,400 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue CompanyNumber of Equivalent Units of Production WholeUnits DirectMaterialsEquivalentUnits ConversionEquivalentUnits Inventory in process, beginning fill in the blank 1 fill in the blank 2 fill in the blank 3 Started and completed fill in the blank 4 fill in the blank 5 fill in the blank 6 Transferred to Packing Department fill in the blank 7 fill in the blank 8 fill in the…
- The Converting Department of Comfy Touch Towel and Tissue Company had 2,600 units in work in process at the beginning of the period, which were 35% complete. During the period, 23,800 units were completed and transferred to the Packing Department. There were 7,400 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount box does not require an entry, leave it blank. Comfy Touch Towel and Tissue Company Number of Equivalent Units of Production Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total Whole Units Direct Materials Equivalent Units Conversion Equivalent UnitsTamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 21,600 units, and transferred 22,200 units of product to the Assembly department. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department. 2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly.Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 21,600 units, and transferred 22,200 units of product to the Assembly department. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department. Prepare the Forming department's process cost summary for May using the weighted-average method.
- The Converting Department of Worley Company had 1,000 units in work in process at the beginning of the period, which were 40% complete. During the period, 20,800 units were completed and transferred to the Packing Department. There were 1,120 units in process at the end of the period, which were 70% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of GAYUMA product after which the bottles are sent to the shipping department for packing and crating. Labor and overhead are continuously added during the processing. Overhead is applied at the rate of P30 per direct labor hour. Data for May follows: Work in process, beginning 4, 000 units Raw materials-chemicals (60% complete) Direct Labor (25% complete) Overhead (25% complete) Started in Process 21, 000 units Completed and transferred 20, 000 units Work in process, end Raw materials-chemicals (100% complete) Raw materials-bottles (60% complete) Direct labor (80% complete) Overhead (80% complete) Costs for May: Work in process,…At the High Quality GAYUMA Corp., operated by A.E. Cabug, the process begins with the blending of various chemicals and ends with the bottling of GAYUMA product after which the bottles are sent to the shipping department for packing and crating. Labor and overhead are continuously added during the processing. Overhead is applied at the rate of P30 per direct labor hour. Data for May follows: Work in process, beginning 4, 000 units Raw materials-chemicals (60% complete) Direct Labor (25% complete) Overhead (25% complete) Started in Process 21, 000 units Completed and transferred 20, 000 units Work in process, end Raw materials-chemicals (100% complete) Raw materials-bottles (60% complete) Direct labor (80% complete) Overhead (80% complete) Costs for May: Work in process,…
