Reyes Company produces a product that undergoes three processes and the completed items at end of process 3 are the items to be sold to customers. For November 2021, Reyes Company presented the following costs on three processes:
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- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?A company processes raw material into Products R, B, T and D. Products R, B and T are joint products and D is classified as a by-product. In process 1, 50 000 kg of material will be processed at a cost of R220 600 worth of material, R40 500 labour and R24 500 overheads. After the basic processing in process 1, thirty percent of the input is transferred to process B. In Process B additional costs of R25 400 are incurred and product B (from process B) can then be sold for R28 per kg. They transfer 60% of the original material input (from process 1) to process 2 and then the remainder to Process D. The products in process D are considered a by-product (By-product D) and have a sales price of R6 per kilogram. The cost involved with the selling of the by-product is R7 000 in total. The business account for this by crediting the net market value of by-products produced to the general production costs. In process 2 the materials processed further at a cost of R21 200. They then…X Co. Ltd. produces three types of products A, B and C and keeps accounts for Process I, Process II and Process III. Following statements show the relative importance of each type of product in each process : Process I Points Process II Points Process III Points Product A Product B 2 4 2 4 2 1 Product C 8 3 2 Costs for each process for March, 2019 are as follows : Process I Process II $ 9,000 3,000 5,100 Process III $ 9,000 1,800 2,400 Total Materials Labour Overheads 12,000 4,200 3,000 $ 30,000 9,000 10,500 19,200 17,100 13,200 49,500 Production during the period : Product A 600 units ; Product B 300 units ; Product C 900 units. You are required to- (a) prepare a statement showing weighted average production for each process and (b) compute the cost for each type of product.
- Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the costs to process PM-20 are $1,084,000 for materials and $644,000 for conversion costs. The results of the processing follow: Units Produced Sales Value per Unit Alpha Beta 31,000 $ 9.60 24,800 Gamma 6,200 18.00 80.00 Required: Assign costs to Alpha, Beta, and Gamma for February using the net realizable value method. Product Cost Assigned Alpha Beta Gamma Total S 0Manufacturing Company produces special kitchen utensils using the JIT system. Transactions for the current period are as follow:a. Raw materials purchased, P1,950,000b. Direct labor costs of P2,500,000 were incurred.c. Actual overhead costs of P3,500,000 were incurred.d. Conversion costs are directly charged to cost of sales.e. Finished goods, end amounted to P420,000 of which P200,000 is materials.f. Finished goods, beg amounted to P600,000 of which P350,000 is materialsg. RIPI, beginning P850,000, of which materials is P600,000.h. RIPI, ending P750,000, of which materials is P500,000.The cost of sales for the period amounted to:a. P8,230,000 b. P8,200,000 c. P8,130,000 d. P8,000,000Latexim company manufactured clothes. Latexim uses a process costing system. Thefollowing information on Assembly Process is extracted from Latexim’s record;Input materials 3,200 kilogram (kg) RM18 per kgLabour and overhead incurred RM12,000Expected normal loss 7% of inputAssuming that the losses can be sold as scrap for RM1.50 per kg. You are requiredcompute:i) Scrap value of normal loss in RM.ii) Expected output in kg. iii) Calculate cost per kg
- ABC Company uses a backflush costing system with three trigger points: Purchase of direct materials Completion of finished units Sale of finished units The following data are provided for April 2022: Purchase of raw materials – P3,000,000 Conversion costs incurred – P800,000 Standard direct material cost is P100 per unit while standard conversion cost is P25 per unit. ABC Company produced 28,500 units and was able to sell 28,300 units. 1. How much is the ending Finished Goods as of the end of April? 2. How much is the raw and in process account as of the end of April?IN SEQUENCIAL PRODUCTION PROCESS A, B AND C, • MATERIAL ABSORBED FOR PROCESS A IS $50.000; CONVERSION COST IS $30,000; • MATERIALS ABSORBED FOR B PROCESS ARE $64,000 FROM A WIPS WITH CONVERSION COST$32.000 • MATERIALS ABSORBED FOR C PROCESS ARE $40,000 FROM B WIPS WITH CONVERSION COST $10,000,- • BEGINNING INVENTORY OF FINISHED GOODS $7.000; AND ENDING INVENTORY OF FINISHED GOOD IS $10.000. • CALCULATE CHANGING INVENTORY OF A AND B AND COGS.ABC Company uses a backflush costing system with three trigger points: Purchase of direct materials Completion of finished units Sale of finished units The following data are provided for April 2022: Purchase of raw materials – P3,000,000 Conversion costs incurred – P800,000 Standard direct material cost is P100 per unit while standard conversion cost is P25 per unit. ABC Company produced 28,500 units and was able to sell 28,300 units. 1.How much is the Raw and In Process account as of the end of April?
- Chempaka Sdn. Bhd. produces a chemical product which goes through two processes. The output from Process 1 is transferred to Process 2, where further material is added before it becomes finished goods. The details of the process costs of the company for first quarter of year 2020 were shown as below: Process 1Direct material 54,000 kg at RM2.80 per kgDirect labour 28,500 hoursProduction overhead 150% of direct material costActual output 50,000 kg Process 2Direct material added 30,000 kg at RM4 per kgDirect labour 18,000 hoursDirect expenses RM5,000Production overhead RM6.40 per direct labour hourFinished goods 74,800 Additional information:1. Direct labours are paid at the rate of RM4.00 per hour.2. Losses are expected to be 10% of the total input for Process 1 and 5% of the total input for Process 2.3. Normal loss from Process 1 was sold as scrap at RM0.80/kg and normal loss from Process 2 was sold at RM2.30/kg, for both of which immediate payment was received. Required:a. Prepare…Sarah produces a product that passes through two processes, Process 1 and Process 2. Details of activities for the month of December, 2020 is as follows; Process 1 Process 2Material introduced (4,000 units) @GH₵200.00 - Material added - GH₵25,000.00Labour Costs (@GH₵400 per hour) 200hrs 600hrsOutput in units 3,500units…Agua Corporation applies the just-in-time philosophy in its materials procurement and production systems. It uses Raw and in Process account to keep track of its materials and backflushed materials at the date goods are completed. The following selected transactions occurred in one of its products in the month of January 2020: Raw materials purchases, Direct materials 12,000 lbs. @ P10, P126,000. P4,400 Indirect materials Production costs with 3,000 units Other conversion costs Beginning and ending balances: P62,000 RIP FG Beginning balances Direct Materials Conversion costs 2,000 900 2,900 (1,500) (600) 2,100 3,100 1,200 4,300 (1,500) (2,200) 3,700 Total Ending balances Direct Materials Conversion costs Total Using the company's backflush accounting system, how much is the direct materials used to be backflushed?