FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Equivalent units and related costs; cost of production report: entriesWhite Diamond Flour Company manufactures flour by a series of threeprocesses, beginning with wheat grain being introduced in the MillingDepartment. From the Milling Department, the materials pass throughthe Sifting and Packaging departments, emerging as packaged refinedflour.Work in Process-Sifting Department (900 units, 3/5 completed): Direct materials (900 x $2.05) $ 1,845 Conversion (900 x K x $0.40) 216 $2,061 The following costs were charged to Work in Process-SiftingDepartment during July: Direct materials transferred from Milling Department; 15,700 units at $2.15 a unit $33,755 Direct labor 4,420 Factory overhead 2,708 During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1, 100 units, 4/5 completed.Instructions1. Prepare a cost of production report for the Sifting Department for July.2. Journalize the entries for costs transferred from…arrow_forwardPittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled aluminum, which consists of the smelting and rolling processes. Materials are entered from smelting at the beginning of the rolling process. The inventory of Work in Process—Rolling on September 1 and debits to the account during September were as follows: Bal., 1,000 units, 20% completed: Direct materials (1,000 x $5.3) $ 5,300 Conversion (1,000 x 20% x $2.2) 440 $ 5,740 From Smelting Department, 24,200 units $130,680 Direct labor 35,940 Factory overhead 19,352 During September, 1,000 units in process on September 1 were completed, and of the 24,200 units entering the department, all were completed except 2,400 units that were 60% completed. Charges to Work in Process—Rolling for October were as follows: From Smelting Department, 27,800 units $155,680 Direct labor 44,660 Factory overhead 24,052 During October, the units in process at the beginning of…arrow_forwardadded when the units are one-half completed. Labor and factory overhead are applied evenly during the process. Make the following computations for each case: a. Unit cost of materials, labor, and factory overhead for the month b. Cost of the units finished and transferred during the month Cost of the units in process at the end of the month C. E6-4 Calculating equivalent units Conte Chemnical Co. uses the weighted average cost method. All materials are added at the start of the production process. Labor and overhead are added evenly at the same rate throughout the process. Conte's records indicate the following data for May: Beginning work in process, May 1 (50% completed). Started in May..... 1,000 units 5,000 units Completed and transferred 4,000 units Ending work in process, on May 31, is 75% completed as to labor and factory overhead. Make the following calculations: a. Equivalent units for direct materials b. Equivalent units for labor and overhead (Hìnt first determine the ending…arrow_forward
- Fields Company has two manufacturing departments, forming and painting. The company uses the weighted average method and it reports the following unit data for the Forming department. Units completed in the forming department are transferred to the painting department. Units Direct Materials Conversion Percent Complete Percent Complete Beginning work in process inventory 33,500 70% 30% Units started this period 470,000 Completed and transferred out 468,500 Ending work in process inventory 35,000 90% 50% Production cost information for the forming department follows. Beginning work in process Direct materials $ 55,000 Conversion 22,100 $ 77,100 Costs added this period Direct materials 1,745,000 Conversion 1,154,020 2,899,020 Total costs to account for $ 2,976,120 Calculate the equivalent units of production for both direct materials and conversion for the Forming department. Calculate the costs per equivalent unit of…arrow_forwardEntries for Flow of Factory Costs for Process Costing Keoni Inc. manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $900,000, $375,000, and $2,860,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $175,000, and work in process at the end of the period totaled $220,000. a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.arrow_forwardEquivalent Units of Production The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 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 is zero, enter in "0". Worley Company Number of Equivalent Units of Production Direct Materials Conversion Whole Units Equivalent Units Equivalent Units Inventory in process, beginning 640 160 Started and completed 12,960 X 12,960 12,960 X Transferred to Packing Department 12,600 12,960 X 13,120 720 X 720 X 216 X Inventory in process, ending Total 14,320 13,680 X 13,336 X Feedback V Check My Work When are the materials added to the units? How much more…arrow_forward
- Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals.The balance in the account Work in Process—Filling was as follows on January 1:Work in Process—Filling Department(3,400 units, 60% completed):Direct materials (3,400 × $9.58) $32,572Conversion (3,400 × 60% × $3.90) 7,956 $40,528The following costs were charged to Work in Process—Filling during January:Direct materials transferred from ReactionDepartment: 52,300 units at $9.50 a unit $496,850Direct labor 101,560Factory overhead 95,166During January,…arrow_forwardWhite Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour. The balance in the account Work in Process-Sifting Department was as follows on July 1: Work in Process-Sifting Department (800 units, 3/5 completed): Direct materials (800 × $2.25) $1,800 Conversion (800 × 3/5 × $0.40) 192 $1,992 The following costs were charged to Work in Process-Sifting Department during July: Direct materials transferred from Milling Department: 16,400 units at $2.35 a unit $38,540 Direct labor 4,480 Factory overhead 2,945 During July, 16,100 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed. Required: 1. Prepare a cost of production report for the Sifting Department for July. If an…arrow_forwardWhite Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour. The balance in the account Work in Process-Sifting Department was as follows on July 1: Work in Process-Sifting Department (900 units, 3/5 completed) on July 1 Cost Source Direct Materials (900 x $3.15) Conversion (900 x 3/5 x $0.30) Total Materials and Conversion I Dollar Amount $2,835 162 2,997 The following costs were charged to Work in Process-Sifting Department during July: Work in Process-Sifting Department Cost Source Direct materials transferred from Milling Department: 15,700 units at $2.30 a unit Direct Labor Factory Overhead Dollar Amount $36,110 5,420 2,384 During July, 15,500 units of flour were completed. Work in Process-Sifting Department on July 31 was 1,100 units, 4/5 completed.arrow_forward
- Equivalent Units and Related Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process—Filling was as follows on January 1: Work in Process—Filling Department (5,600 units, 40% completed): Direct materials (5,600 x $12.20) $68,320 Conversion (5,600 x 40% x $7.90) 17,696 $86,016 The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 72,200 units at $12.00 a unit $866,400 Direct labor 292,660 Factory overhead 281,176 During January, 71,600 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 6,200 units, 10% completed. Required:…arrow_forwardEquivalent Units and Related Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process—Filling was as follows on January 1: Work in Process—Filling Department (3,500 units, 80% completed): Direct materials (3,500 x $14.90) $52,150 Conversion (3,500 x 80% x $9.60) 26,880 $79,030 The following costs were charged to Work in Process—Filling during January: Direct materials transferred from Reaction Department: 45,200 units at $14.60 a unit $659,920 Direct labor 219,930 Factory overhead 211,314 During January, 44,800 units of specialty chemicals were completed. Work in Process—Filling Department on January 31 was 3,900 units, 40% completed. Required:…arrow_forwardWhite Diamond Flour Company manufactures flour by a series of three processes, beginning with wheat grain being introduced in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.The balance in the account Work in Process—Sifting Department was as follows on July 1: Attachment During July, 15,500 units of flour were completed. Work in Process—Sifting Department on July 31 was 1,100 units, 4⁄5 completed.Instructions1. Prepare a cost of production report for the Sifting Department for July.2. Journalize the entries for costs transferred from Milling to Sifting and the costs transferred from Sifting to Packaging.3. Determine the increase or decrease in the cost per equivalent unit from June to July for direct materials and conversion costs.4. Discuss the uses of the cost of production report and the results of part (3).arrow_forward
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