Question 2Balkan Bhd, manufatures a caulking compound that goes through three processing stage priorto completion. Information on work in the first department, Cooking Department, is givenbelow for May:Production data:Pounds in process, May 1;(materials 100% complete; conversion 80% complete)10,000Pounds started into production during May100,000Pounds in process, May 31;(materials 60% complete; conversion 20% complete)15,000Cost data:Work in process inventory, May 1:Materials costRM1,500RM7,200Conversion costCost added during May:Materials costConversion costRM154,500RM90,800You need to prepare the cost reconciliation report for this process costing, but you are not surewhich method is the most suitable method to be implemented in the company. You need toanalyse which of these methods, either weighted average costing method or first in first outcosting method give higher cost of the finished goods and explain the differences between thetwo costing methods. The report must also include a physical flow schedule and an equivalent

Weighted Average Cost method:- It is a method in which total inventory cost get divided by the total…

Answered: Question 2 Balkan Bhd, manufatures a…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 16E: Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The...

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Goode Company has the following production data for selected months. EndingWork in Process Month BeginningWork in Process UnitsTransferred Out Units % Complete as toConversion Cost January –0– 40,300 10,300 42 % March –0– 41,800 9,000 75 July –0– 48,800 20,700 21 Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process. Materials Conversion Costs January March July
PROBLEM 4 Sussex Corporation's production cycle starts in the Mixing Department. The following information is available for April: UNITS Work in process, April 1 (50% complete) Started in April Work in process, April 30 (60% complete) 40, 000 240, 000 25, 000 5. Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for the month of April under FIFO method? 6. What are the equivalent units of production for the month of April under average method?
Question 2 Balkan Bhd, manufatures a caulking compound that goes through three processing stage prior to completion. Information on work in the first department, Cooking Department, is given below for May: Production data: Pounds in process, May 1; 10,000 (materials 100% complete; conversion 80% complete) Pounds started into production during May 100,000 Pounds in process, May 31; 15,000 (materials 60% complete; conversion 20% complete) Cost data: Work in process inventory, May 1: Materials cost…
Computing EUP, second department The Packaging Department started the month with 600 units in process, received 1,200 units from the Finishing Department, and transferred 1,500 units to Finished Goods. Direct materials are added at the beginning of the process and conversion costs are incurred evenly. The units still in process at the end of the month are 60% complete for conversion costs. Calculate the number of units still in process at the end of the month and the equivalent units of production. The company uses the weighted-average method.
Work in process account data for two months; cost of production reports Hearty Soup Co. uses process costing to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process- Filling on April 1 and debits to the account during April were as follows: 1 Bal., 800 units, 30% completed: Direct materials (800 x $4.30) Conversion (800 x 30% x $1.75) From Cooking Department, 7,800 units Direct labor Factory overhead During April, 800 units in process on April 1 were completed, and of the 7,800 units entering the department, all were completed except 550 units that were 90% completed. Charges to Work in Process-Filling for May were as follows: From Cooking Department, 9,600 units Direct labor Factory overhead $44,160 12,042 6,878 During May, the units in process at the beginning of the month were completed, and of the 9,600 units entering the…
Work in Process Account Data for Two Months; Cost of Production Reports Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—Filling on April 1 and debits to the account during April were as follows: Bal., 600 units, 60% completed: Direct materials (600 x $5.30) $ 3,180 Conversion (600 x 60% x $2.20) 792 $ 3,972 From Cooking Department, 13,740 units $74,196 Direct labor 19,106 Factory overhead 10,288 During April, 600 units in process on April 1 were completed, and of the 13,740 units entering the department, all were completed except 1,500 units that were 20% completed.Charges to Work in Process—Filling for May were as follows: From Cooking Department, 15,800 units $88,480 Direct labor 26,270 Factory overhead 14,146 During May, the units in process at…
Work in Process Account Data for Two Months; Cost of Production Reports Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—Filling on April 1 and debits to the account during April were as follows: Bal., 600 units, 60% completed: Direct materials (600 x $5.30) $ 3,180 Conversion (600 x 60% x $2.20) 792 $ 3,972 From Cooking Department, 13,740 units $74,196 Direct labor 19,106 Factory overhead 10,288 During April, 600 units in process on April 1 were completed, and of the 13,740 units entering the department, all were completed except 1,500 units that were 20% completed.Charges to Work in Process—Filling for May were as follows: From Cooking Department, 15,800 units $88,480 Direct labor 26,270 Factory overhead 14,146 During May, the units in process at…
Work in Process Account Data for Two Months; Cost of Production Reports Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—Filling on April 1 and debits to the account during April were as follows: Bal., 600 units, 60% completed: Direct materials (600 x $5.30) $ 3,180 Conversion (600 x 60% x $2.20) 792 $ 3,972 From Cooking Department, 13,740 units $74,196 Direct labor 19,106 Factory overhead 10,288 During April, 600 units in process on April 1 were completed, and of the 13,740 units entering the department, all were completed except 1,500 units that were 20% completed.Charges to Work in Process—Filling for May were as follows: From Cooking Department, 15,800 units $88,480 Direct labor 26,270 Factory overhead 14,146 During May, the units in process at…
Elmo has the following information for the month of October, its first month of operations Work in Process October 1 0 Units completed and transferred out in October 120, 000 Work in Process, October 30 32,000 100% completed for materials 80% completed for conversion costs Costs added in October Materials $145, 900 Direct labor $96,000 Overheads $108,000 Required:(1.) Determine the equivalent units of production for October. 2.) Determine the cost of the ending work-in-process.(3.) Determine the cost of goods completed.(4) What is meant by the term equivalent full units?
Work in process account data for two months; cost of production reports Hearty Soup Co. uses process costing to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process-Filling on April 1 and debits to the account during April were as follows: Bal., 800 units, 30% completed: Direct materials (800 x $4.30) Conversion (800 x 30% × $1.75) From Cooking Department, 7,800 units Direct labor Factory overhead From Cooking Department, 9,600 units Direct labor Factory overhead During April, 800 units in process on April 1 were completed, and of the 7,800 units entering the department, all were completed except 550 units that were 90% completed. Charges to Work in Process-Filling for May were as follows: ACCOUNT Department During May, the units in process at the beginning of the month were completed, and of the 9,600 units entering the department,…
Work in Process Account Data for Two Months; Cost of Production Reports Hearty Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process. The inventory of Work in Process—Filling on April 1 and debits to the account during April were as follows: Bal., 600 units, 60% completed: Direct materials (600 x $7.40) $ 4,440 Conversion (600 x 60% x $3.10) 1,116 $ 5,556 From Cooking Department, 14,280 units $107,100 Direct labor 27,539 Factory overhead 14,829 During April, 600 units in process on April 1 were completed, and of the 14,280 units entering the department, all were completed except 1,600 units that were 20% completed.Charges to Work in Process—Filling for May were as follows: From Cooking Department, 16,400 units $126,280 Direct labor 37,580 Factory overhead 20,236 During May, the units in process…
Wildhorse Company has the following production data for selected months. Month January March July January January Beginning Work in Process March July -0- -0- -0- Save for Later Materials Units Transferred Out Materials e Textbook and Media 45.500 52,000 58,500 Compute equivalent units of production for materials and conversion costs, assuming that materials are entered at the beginning of the process and that conversion costs are incurred uniformly throughout the process. Ending Work in Process Units 13,000 10,400 20.800 Compute equivalent units of production for materials and conversion costs, assuming that materials are entered at the beginning of the process and that conversion costs are incurred uniformly throughout the process. Conversion Costs % Complete as to Conversion Cost 40% Conversion Costs 75 25 4 Attempts: 0 of 1 used Submit Answer

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