i need the answer quickly Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 3,300 cases of mixed vegetables costs $6.per case: direct materials, $3.00; direct manufacturing labour, $2.00; and manufacturing overhead allocated, $1.00. The manufacturing overhead rate includes a provision for normal spoilage. Conseach requirement independently.RequirementsRequirement 1Suppose part of the 300 cases that were dropped could be sold to a nearby prison for $300 cash. Prepare a journal entry to record this event. (Record debits first, then credits. Explanations arenot required.)CashLoss from Abnormal SpoilageWork-in-Process ControlAccountsCalculate and explain briefly the unit cost of the remaining 3,000 cases.DebitCredit3001,5001,800The cost for the remaining cases is $per case. The cost of these cases is affected by the loss from normal silageClear allCheck answ

Journal entries refer to the concept of inspecting and documenting all the transactions done by a…

direct materials, $3.00; direct man uirement independently. ments ement 1 e part of the 300 cases that were d uired.) Cash Loss from Abnormal Spoilage Work-in-Process Control Acc late and explain briefly the unit cost ost for the remaining cases is $

direct materials, $3.00; direct man uirement independently. ments ement 1 e part of the 300 cases that were d uired.) Cash Loss from Abnormal Spoilage Work-in-Process Control Acc late and explain briefly the unit cost ost for the remaining cases is $

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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(L. Bamber) Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Q. Refer to the original data. Tasters at the company reject 420 of the 2,100 cases. The 420 cases are disposed of for $840. Assume that this rejection rate is considered normal. Prepare a journal entry to record this event, and do the following: a.Calculate the unit cost if the rejection is characteristic of the production process and is not attributable to this specific job.
(L. Bamber) Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing labor, $3; and manufacturing overhead allocated, $2. The manufacturing overhead rate includes a provision for normal spoilage. Consider each requirement independently. Q. Refer to the original data. Tasters at the company reject 420 of the 2,100 cases. The 420 cases are disposed of for $840. Assume that this rejection rate is considered normal. Prepare a journal entry to record this event, and do the following: a. Calculate the unit cost if the rejection is attributable to exacting specifications of this particular job.
Belden Frozen Foods packages a variety of frozen meals and vegetables. In its Saratoga Street plant, the company packages frozen corn only. The cost analyst at the Saratoga plant has conducted an analysis of the plant overhead cost accounts. Partial information from the analysis, based on the month studied, is shown here: Variable Portion $ 55,240 20,040 34,120 ?? Fixed Portion Account Indirect labor Supervision Maintenance $ 50,560 18,760 ?? 54,760 Depreciation From this information, the cost analyst used the account analysis method to derive a cost estimation equation of the form Total cost = Monthly fixed cost + (Variable cost per case × Number of cases) Using the newly derived equation, the cost analyst estimated overhead costs for the following two months: Estimated Production (cases) 80,000 100,000 Month 1 Month 2 Overhead Cost $ 293,640 326,440 In the month the study was conducted, the plant produced 90,800 cases. Required: a. What is the estimated variable overhead cost per…
A Midwest producer of specialty farming equipment, Agriboon, has three products that the company needs costing information about. The following information is available for each product. XY263 GO987 TR345 Direct material cost per unit $2.00 $8.00 $10.00 Direct labor cost per hour $15.00 $16.75 $18.00 Agriboon presently applies overhead using a predetermined rate based on direct labor hours. Estimated Direct Labor hours for the year are 132,026. The product leader for GO987 has suggested that Agriboon switch to activity-based costing and identified the following activities, cost drivers, estimated costs, and estimated cost driver units for the year: Activity Recommended Cost Driver Estimated Cost Estimated Cost Driver Units Materials Handling Requisition Request $38,912 1,216 Request Machine Operations Machine Hours $142,500 12,000 Hours Safety Compliance Compliance Test $125,000 1,100 Test Total OH…
Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $28.00 per hr. standard time per unit 5.0 hrs. Direct materials (oak): standard price standard quantity $12.00 per bd. ft. 18 bd. ft. Variable factory overhead: Fixed factory overhead: $2.00 per direct labor hr. $3.80 per direct labor hr. standard rate standard rate a. Determine the standard cost per dining room table. b. Why would Atlas Furniture Company use a standard cost system?
S Benson Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Cost Cost driver Unit Level $ 55,100 Req A and B 1,900 labor hours. Req C Activities Batch Level $ 21,420 42 setups Product Level $ 10,000 Percentage of use Production of 760 sets of cutting shears, one of the company's 20 products, took 280 labor hours and 8 setups and consumed 18 percent of the product-sustaining activities. Facility Level $ 154,000 14,000 units Required a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for…
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 20 and 60 trees, respectively, in them at one time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the production departments.
Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 70,000. b. Requisitioned raw materials to production, 70,000. c. Distributed direct labor costs, 15,000. d. Factory overhead costs incurred, 45,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 195,000, on account. (Hint: Use a single account for raw materials and work in process.)
Caseys Kitchens makes two types of food smokers: Gas and Electric. The company expects to manufacture 20,000 units of Gas smokers, which have a per-unit direct material cost of $15 and a per-unit direct labor cost of $25. k also expects to manufacture 50,000 units of Electric smokers, which have a per-unit material cost of $20 and a per-unit direct labor cost of $45. Historically, it has used the traditional allocation method and applied overhead at a rate of $125 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is as follows: The cost driver for each cost pool and its expected activity is as follows: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing? C. Compared to ABC costing, was each products overhead under- or over applied? D. How much was overhead under- or over applied for each product?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Next year, Palladium expects production to require 90,000 direct labor hours. Exercise 9-64 Performance Report Based on Actual Production Refer to the information for Palladium Inc. above. Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Required: Prepare a performance report for the period based on actual production.
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.