Please do not give solution in image format thanku Universal Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Universal's mostpopular engine, the "Atomic 8"Beginning work-in-process (40% completed)Transferred-inNormal spoilageAbnormal spoilageGood units transferred outEnding work-in-process (25* completed)Conversion costs in beginning inventoryCurrent conversion costsWhat are the unit conversion costs?Universal Automotive Group calculates separate costs of spollage by computing both normal and abnormal spoiled units. Normal spollage costs are reallocated to good units and abnormal spoilage costs are chargedas a loss. The units of the Atomic 8 that are spoiled are the result of defects not discovered before inspection of finished units. Using the weighted-average method, answer the following question:Multiple ChoiceOC$649.08.$605.81.$583.14.400 units1,600 units100 units100 units1,400 units400 units$534.54.$180, 500$728,218

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Description: Please do not give solution in image format thanku Universal Automotive Group is a maker of engines for high performance cars and uses a process costing system. The following information pertains to the final department of manufacturing for Universal

Conversion costs often include direct labor, which includes the salary and benefits of direct…

Business

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pular engine, the "Atomic 8" Beginning work-in-process (40% completed) Transferred-in formal spoilage abnormal spoilage Good units transferred out Ending work-in-process (25 completed) Conversion costs in beginning inventory Current conversion costs 400 units 1,600 units 100 units 100 units 1,400 units 400 units $180,500 $720,210

pular engine, the "Atomic 8" Beginning work-in-process (40% completed) Transferred-in formal spoilage abnormal spoilage Good units transferred out Ending work-in-process (25 completed) Conversion costs in beginning inventory Current conversion costs 400 units 1,600 units 100 units 100 units 1,400 units 400 units $180,500 $720,210

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 3PB: Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is...

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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.)
A company is using process costing with the first-in, first-out (FIFO) method, and all costs are added evenly throughout the manufacturing process. If there are 5,000 units in beginning work in process inventory (30% complete), 10,000 units in ending work in process inventory (60% complete), and 25,000 units started in process this period, how many equivalent units are there for this period? a. 22,500 units. b. 26,000 units. c. 24,500 units. d. 25,000 units.
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
Vexar manufactures nails. Manufacturing is a one-step process where the nails are forged. This is the information related to this years production: Â Ending inventory was 100% complete as to materials and 70% complete as to conversion, and the total materials cost is $115,080 and the total conversion cost is $72,072. Using the weighted-average method, what are the unit costs if the company transferred out 34,000 units? Using the weighted-average method, prepare the companys process cost summary for the month.
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
AAZU is considering various costs under process costing system. AAZU uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records:Total equivalent units of materials: 5,000Total equivalent units of conversion: 4,400Units started and completed during the period: 3,500On the basis of this information, the ending work-in-process inventory's stage of completion is: a. 40%. b. 60%. c. 70%. d. 80%. e. some other percentage not listed above.
Hi-T Company uses the weighted average method of process costing. Information for the company's first production process follows. All direct materials are added at the beginning of this process, and conversion costs are added uniformly throughout the process. Beginning work in process inventory Completed and transferred out Ending work in process inventory Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Units 5,000 31,000 10,000 Direct Materials Percent Complete 100% 100% $ 65,700 119,500 455,000 374,000 Conversion Percent Complete 80% 40% $ 185,200 829,000 $ 1,014,200 Complete this question by entering your answers in the tabs below. a. Compute the equivalent units of production for both direct materials and conversion. b. Compute the cost per equivalent unit for both direct materials and conversion. c. Assign costs to the department's output-specifically, to the units transferred out and to the units…
Hanrahan Company uses process costing to account for the costs of its only product, X. On December 31, the inventory for Product X was as follows: Work in Process, Beginning Started and In Process Transferred out Work in process-Ending 800 units (3/4 complete as to conversion costs) 1,200 units 1,500 units 500 units (3/4 complete as to conversion costs) Materials are added at the beginning of the process. Beginning Cost: Materials Conversion Costs Current Cost: Materials Conversion Costs Required: P80,000 P30,000 P150,000 P75,000 1. Compute the equivalent units of materials and conversion costs using the FIFO Method. 2. Compute the equivalent units of materials and conversion costs using the Average Method. 3. Determine the total cost of ending work in process under FIFO Method. (Note: Always use two decimal places, if any).
Victory Company uses weighted average process costing. Ine company nas two proauction processes. Conversion cost is added evenly throughout each process. Direct materials are added at the beginning of the first process. Additional information for the first process follows. Beginning work in process inventory Units started this period Units completed and transferred out Ending work in process inventory Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for Total units Units 61,000 850,000 730,000 181,000 Units $ 296,075 102,563 1,981,425 1,948,687 Direct Materials Conversion Percent Percent Complete 100% Complete 80% 100% Required: 1. Compute equivalent units of production for both direct materials and conversion. Percent Complete $ 398,638 3,930,112 $ 4,328,750 Equivalent Units of Production (EUP) - Weighted Average Method Direct Materials EUP 50% Percent Complete Conversion EUP
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…
INTEGRITY Company uses process costing. The materials are added when the process in 50% complete and conversion costs are added uniformly throughout the process. The following are the information during the period: Physical Units: Work in Process, beginning (60% complete) Started during the period Work in Process, ending (45% complete) Costs: Work in Process, beginning Materials Conversion Costs Cost added during the period: Materials Conversion Costs Determine the following: 6. How much is the total costs to account for? 30,000 200,000 50,000 67,800 29,300 579,000 248,900 7. Using WAVE, what is the EUP for materials? 8. Using WAVE, how much is the cost of completed and transferred? 9. Using FIFO, what is the EUP for conversion cost? 10. Using FIFO, how much is the cost of work in process, ending?
Cullumber 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, $43) Actual manufacturing overhead Selling and administrative expenses Unit production costs: Direct materials (1 kilogram) Direct labour (1/2 hour) Manufacturing overhead Total $5,000,900 752,400 373,920 $6.00 8.00 9.00 $23.00 Units completed and transferred to finished goods Materials purchased Materials used in process (a) 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 Cullumber Inc.: 159,600 units The January 1, 2022, work in process inventory units…