FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Sweeties, 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 $360,000, $147,000, and $96,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $32,000, and work in process at the end of the period totaled $28,200. Required: a. (1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.* (2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.* (3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.* b. On September 30, journalize the entry to record the transfer of…arrow_forwardHoward Corporation has two production departments. Curing has 12,000 units in process at the beginning of the period, 3 / 4 complete. During the period, 45,000 units were received from Crushing, 48,000 units were transferred to Finished Goods, and 9,000 units were in process at the end of the period, 2/ 3 complete. Cost information was as follows: Cost of beginning Work in Process: Cost in Crushing $ 21,640 Cost in Curing: Materials 8,810 Labor 1,190 Factory overhead 2,420 Costs during the month: Cost of goods received from Crushing $ 85,520 Cost in Curing: Materials 53,830 Labor 10,690 Factory overhead 17,560 Total costs to be accounted for $201,660 Question: Using the information above: Determine the unit cost for the month in Curing.b. Determine the total cost of the products transferred to…arrow_forwardRadford 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 $360,000, $147,000, and $96,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $32,000, and work in process at the end of the period totaled $28,200. Required: a. (1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.* (2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.* (3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.* b. On September 30, journalize the entry to record the transfer of…arrow_forward
- Blossom Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. To assign costs to inventories, the company uses weighted-average process costing. The following information was available for 2022: Sales (selling price per unit, $40) Actual manufacturing overhead Selling and administrative expenses Unit production costs: Direct materials (1 kilogram) Direct labour (1/2 hour) Manufacturing overhead Total (a) $4,568,000 739,200 367,360 $7.00 9.00 10.00 $26.00 Units completed and transferred to finished goods Materials purchased Materials used in process Raw materials Work in process inventory (45% complete) Finished goods An inventory count at year end (December 31, 2022) revealed that the inventories had the following balances: Calculate the following amounts for Blossom Inc.: Your answer is partially correct. 156,800 units 140,000 kilograms…arrow_forwardSolomons, Inc. has refined its allocation system by separating manufacturing overhead into two cost pools, one for each department. The estimated cost for the mixing department, $615,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 201,000. The estimated cost for the packaging department, $293,000, will be allocated based on direct labor hours, and the estimated machine hours for the year are 59,200. In October, the company incurred 17,240 direct labor hours in the mixing department and a total of 14,260 machine hours in the packaging department.(Round your answers to two decimal places when needed and use rounded answers for all future calculations).1. Compute the predetermined overhead allocation rates. Department Total estimated overhead cost ? Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate (Per Machine Hour) Mixing Department = Packaging Department =…arrow_forwardboth requirements solvearrow_forward
- The Bangles Corporation manufactures two products, X and Y in a joint process. The data from the production of the two products is as follows: Direct Materials used 720,000 Direct Labor 300,000 Factory overhead 1,380,000 Production Output Units X 80,000 Y 240,000 Product X sells for 15 per unit and Product Y sells for 20 per unit Required: Compute the following a. Compute the total joint cost to be allocated to X and Y b. compute the joint cost to be allocated to product X using physical unit method c. Compute the joint cost to be allocated to product Y using the relative sales value methodarrow_forwardBNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a process cost accounting system. Accounting Transactions No. Transactions (e) manufacturing overhead is applied to the product based on machine hours used in each department: mixing department - 400 machine hours at $30 per machine hour. Finishing department - 500 machine hours at $20 per machine hour. (f) units costing $56,000 were completed in the mixing department and were transferred to the finishing department. (g) units costing $70,000 were completed in the finishing department and were transferred to finished goods. (h) finished goods costing $40,000 were sold on account for $55,000. Prepare the journal entries to record the preceding transactions for BNC Company. List debit transactions first and then list credit transactions. General Journals No. Account Titles and Explanation Debit ($) Credit ($) (e) work in process inventory - mixing…arrow_forwardUniversal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 11,200 units and 20,700 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 36,300 units into production and completed 26,800 units. Manufacturing costs follow. Beginning work in process: Materials, $60,700; conversion cost, $233.000 Current costs: Materials, $212,000; conversion cost, $483,000 Universal's equivalent-unit cost for conversion cost is:arrow_forward
- Suppose that manufacturing is performed in sequential production departments. Prepare a journalentry to show a transfer of partially completed units from the first department to the second department. Assume the amount of costs transferred is $50,000.arrow_forwardGFIM Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. Department 2 has transferred-in costs of $390,000 for the current period. In addition, work in process at the beginning of the period for Department 2 totaled $75,000, and work in process at the end of the period (for Dept. 2) totaled $90,000. The journal entry to record the flow of costs into Department 3 during the period is: DEBIT WIP-Dept. 3 for 375,000 and CREDIT WIP-Dept. 2 for 375.000 ODEBIT WIP-Dept. 3 for 570,000 and CREDIT WIP-Dept. 2 for 570.000 ODEBIT WIP-Dept. 3 for 490,000 and CREDIT WIP-Dept. 2 for 490.000 DEBIT WIP-Dept. 3 for 555,000 and CREDIT…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 $522,500, $182,900, and $120,200, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,300, and work in process at the end of the period totaled $36,100. 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. 1. 2. 3. 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_forward
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