Problem no. 2 Elijah Inc. produces accent stripes for automobiles in 50-inch rolls. Each roll passes through three departments (Striping, Adhesion, and Packaging) before it is ready for shipment to customers. Product costs are tracked by department and assigned using a process costing system. Overhead is applied to production in each department at a rate of 80 percent of the department's direct labor cost. The following T-account information pertains to departmental operations for June 2022: Work in Process-Striping 20,000 90,000 80,000 ? Beginning DM DL Overhead Ending Work in Process-Packaging Beginning Transferred in DM DL Overhead Ending Required: 1. 17,000 2. 150,000 ? ? CGM ? 90,000 40,000 ? Beginning Transferred in Work in Process-Adhesion DM DL Overhead Ending Beginning TI Ending 70,000 7 22,600 ? ? 7 20,600 Finished Goods 185,000 880,000 ? 480,000 720,000 What was the cost of goods transferred from the Striping Department to the Adhesion Department for the month? How much direct labor cost was incurred in the Adhesion Department? How much overhead was assigned to production in the Adhesion Department for the month? 3. How much direct material cost was charged to products in the Packaging Department? 4. Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold during June 2022.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products

Section: Chapter Questions

Problem 7P

See similar textbooks

Similar questions

Kokomo Kayak Inc. uses the process cost system. The following data, taken from the organizations books, reflect the results of manufacturing operations during the month of March: Production Costs Work in process, beginning of period: Costs incurred during month: Production Data: 18,000 units finished and transferred to stockroom. Work in process, end of period, 3,000 units, two-thirds completed. Required: Prepare a cost of production summary for March.
Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)
Baxter Company has two processing departments: Assembly and Finishing. A predetermined overhead rate of 10 per DLH is used to assign overhead to production. The company experienced the following operating activity for April: a. Materials issued to Assembly, 24,000 b. Direct labor cost: Assembly, 500 hours at 9.20 per hour; Finishing, 400 hours at 8 per hour c. Overhead applied to production d. Goods transferred to Finishing, 32,500 e. Goods transferred to finished goods warehouse, 20,500 f. Actual overhead incurred, 10,000 Required: 1. Prepare the required journal entries for the preceding transactions. 2. Assuming Assembly and Finishing have no beginning work-in-process inventories, determine the cost of each departments ending work-in-process inventories.
The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be 3,150,000, and total direct labor costs would be 1,800,000. During February, the actual direct labor cost totalled 160,000, and factory overhead cost incurred totaled 283,900. a. What is the predetermined factory overhead rate based on direct labor cost? b. Journalize the entry to apply factory overhead to production for February. c. What is the February 28 balance of the account Factory OverheadBlending Department? d. Does the balance in part (c) represent over- or underapplied factory overhead?
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior dept. 70,000 In process, February 28 ? 12,000 Stage of completion 2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior dept. 70,000 In process, February 28 ? 12,000 Stage of completion 2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…
Peter Senen Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:                                                                            Department X                                   Department Y Quantity units:                In process, February 1                          16,000                                                10,000                Stage of completion                              4/5                                                       40%                Started in process                                  64,000                Received from prior dept.                                                                               70,000                In process, February 28                           ?                                                       12,000                Stage of completion                              2/5…
Ivanhoe Company has several processing departments. Costs to be accounted for in the Assembly Department for November 2025 totaled $2,297,376 as follows. Work in process, November 1 Materials Conversion costs Direct materials added during November Direct labor incurred during November Manufacturing overhead assigned during November $79,100 48,800 $127,900 1,601,380 226,000 342,096 $2,297,376 Production records show that 35,400 units were in beginning work in process 30% complete as to conversion costs, 664,800 units were started into production, and 24,600 units were in ending work in process 40% complete as to conversion costs. Materials are added at the beginning of each process, and conversion costs are incurred uniformly throughout the process.
Ceria Cubicles a furniture manufacturer, has two departments, Fabrication and Assembly. This company is using job order costing system for all jobs that need to go through each department. Overhead is applied to jobs based on machine hours in Fabrication and on labour hours in Assembly. In December 2018, corporate management estimated the following production data for 2019 in setting its predetermined overhead rates: Fabrication AssemblyMachine hours 65,000 21,000Direct labour hours 20,200 220,000Departmental overhead RM800,000 RM880,000 Two jobs completed during 2019 were No. 223 and No. 224. The job order cost sheets showed the following information about these jobs: No. 223…
Vieute Company operates with two producing departments, P1 and P2, nd two service departments, S1 and S2. Actual manufacturing overhead bofore allocation of service department costs, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services provided by S2 Department si P1 P 40,000 40% 20% 50 40 47,600 14,400 18,000 P2 si S2 40 10 P120,000 100% 100% What is the total manufacturing overhead for P1 (Producing Department 1), after allocating service costs to producing departments. Using data for Vicente, compute the total manufacturing overhead for P1, allocating service department costs stepwise, beginning with department 52. After a department expenses have been allocated, no expenses are assigned back to it. Based on Vicente data: Determine the total manufacturing overhead (including service department costs) for P2 using the reciprocal method.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS