Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic Vases are then transferred to finishing department, which designs it as per the requirement of the customers. During the month of July, molding department purchased 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4,200 vases and completed and transferred 3,300 vases during the month. It has 900 vases in the process at the end of the month. It incurred direct labor charges of $1,600 and other manufacturing costs of $1,500, which included electricity costs of $900. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July? ... A. Work in Process-Molding $1,600 Wages Payable Control $1,600 B. Work in Process-Molding $1,600 Work in Process-Finishing $1,600 O C. Work in Process-Molding $201,600 Accounts Payable Control $201,600 O D. Work in Process-Molding $1,600 Overhead Control $1,600

Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department purchases tungsten carbide and produces ceramic vases out of it. Ceramic Vases are then transferred to finishing department, which designs it as per the requirement of the customers. During the month of July, molding department purchased 720 kgs of tungsten carbide at $280 per kg. It started manufacture of 4,200 vases and completed and transferred 3,300 vases during the month. It has 900 vases in the process at the end of the month. It incurred direct labor charges of $1,600 and other manufacturing costs of $1,500, which included electricity costs of $900. Stefan had no inventory of tungsten carbide at the end of the month. It also had no beginning inventory of vases. The ending inventory was 55% complete in respect of conversion costs. Which of the following journal entries would be correct to record direct labor for July? ... A. Work in Process-Molding $1,600 Wages Payable Control $1,600 B. Work in Process-Molding $1,600 Work in Process-Finishing $1,600 O C. Work in Process-Molding $201,600 Accounts Payable Control $201,600 O D. Work in Process-Molding $1,600 Overhead Control $1,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 300 trees Production: paper 200,000 sheets pencil casings 200,000 Sales: paper 195,000 at $0.10 per page pencil casings 195,500 at $0.16 per casing The cost of purchasing 300 trees and processing them up to the split-off point to yield 200,000 sheets of paper and 200,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings?
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 320 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 169,000 at $0.10 per page pencil casings 177,500 at $0.13 per casing The cost of purchasing 320 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost proportions using the sales value at split-off method, respectively?
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 250 trees Production: paper 180,000 sheets pencil casings 180,000 Sales: paper 174,000 at $0.12 per page pencil casings 178,500 at $0.15 per casing The cost of purchasing 250 trees and processing them up to the split-off point to yield 180,000 sheets of paper and 180,000 pencil casings is $12,500. Bismite's accounting department reported no beginning inventory. What are the paper's and the pencil's approximate weighted cost…
Bismite Corporation purchases trees from Cheney lumber and processes them up to the split-off point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 280 trees Production: paper 160,000 sheets pencil casings 160,000 Sales: paper 147,000 at $0.10 per page pencil casings 158,500 at $0.13 per casing The cost of purchasing 280 trees and processing them up to the split-off point to yield 160,000 sheets of paper and 160,000 pencil casings is $13,000. Bismite's accounting department reported no beginning inventory. What is the total sales value at the split-off point for paper?
Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Formingrequires mixing the raw materials, Moulding, Spraying and Drying. After leaving the DryingDepartment, the handles are packaged and sent to the Finished Goods warehouse for shipment toretail outlets.The following data relates to the Spraying Department for the month of June:During the month, 2,000 handles valued at $275 each were transferred from the MoldingDepartment to the Spraying Department.Other production costs incurred during the month are summarized as follows:Direct Materials AddedDirect Manufacturing WagesManufacturing Overhead$171,000$425,600$205,200Process inspection occurs during the process and normally no losses are expected at this stage.However, during the month 200 handles were rejected at inspection. Rejected units from thisdepartment are sold as scrap at $400 each. These units had reached the following degree ofcompletion:Transfer from Moulding 100%Direct material added…
Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Formingrequires mixing the raw materials, Moulding, Spraying and Drying. After leaving the DryingDepartment, the handles are packaged and sent to the Finished Goods warehouse for shipment toretail outlets.The following data relates to the Spraying Department for the month of June:During the month, 2,000 handles valued at $275 each were transferred from the MoldingDepartment to the Spraying Department.Other production costs incurred during the month are summarized as follows:Direct Materials AddedDirect Manufacturing WagesManufacturing Overhead$171,000$425,600$205,200Process inspection occurs during the process and normally no losses are expected at this stage.However, during the month 200 handles were rejected at inspection. Rejected units from thisdepartment are sold as scrap at $400 each. These units had reached the following degree ofcompletion:Transfer from Moulding 100%Direct material added…
Cheetah Accessories uses four departments to produce handles for kitchen cabinets: Formingrequires mixing the raw materials, Moulding, Spraying and Drying. After leaving the DryingDepartment, the handles are packaged and sent to the Finished Goods warehouse for shipment toretail outlets.The following data relates to the Spraying Department for the month of June:During the month, 2,000 handles valued at $275 each were transferred from the MoldingDepartment to the Spraying Department.Other production costs incurred during the month are summarized as follows:Direct Materials AddedDirect Manufacturing WagesManufacturing Overhead$171,000$425,600$205,200Process inspection occurs during the process and normally no losses are expected at this stage.However, during the month 200 handles were rejected at inspection. Rejected units from thisdepartment are sold as scrap at $400 each. These units had reached the following degree ofcompletion:Transfer from Moulding 100%Direct material added…
Powers Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: Mixing and Bottling. For August, the bottling department had 60,900 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 211,000 gallons during the month. Further, the mixing department completed and transferred out 295,000 gallons at a cost of $649,000 in August. Required: 1. Prepare a physical flow schedule for the bottling department. Powers Inc. Physical Flow Schedule - Bottling Department For the Month of August Physical flow schedule: Units in beginning work in process Units started during the period Total units to account for Units completed and transferred out: Units started and completed Units completed from beginning work in process Units in ending work in process Total units accounted for 2. Calculate equivalent units for the transferred-in category. equivalent units 3. Calculate the unit cost for the transferred-in category. If required,…
nt Bismite Corporation purchases trees from Cheney lumber and processes them up to the split – off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 340 trees Production: рaper 150,000 sheets pencil casings 150,000 Sales: раper 140,000 at $0.20 per page pencil casings 147,500 at $0.24 per casing The cost of purchasing 340 trees and processing them up to the split - off point to yield 150,000 sheets of paper and 150,000 pencil casings is $14,500. Bismite's accounting department reported no beginning inventory. If the sales value at split - off method is used, what is the approximate production cost for each pencil casing? (Round intermediary percentages to the nearest hundredth.)
Lilitop Corporation purchases trees from Hummer lumber and processes them up to the split-off point where two products (paper and pencil casings) emerge from the process. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month of October: Trees processed: 270 trees Production: раper 150,000 sheets pencil casings 150,000 Sales: paper 137,000 at $0.10 per page pencil casings 149.000 at $0.14 per casing The cost of purchasing 270 trees and processing them up to the split-off point to yield 150,000 sheets of paper and 150,000 pencil casings is $14,500. Lilitop's accounting department reported no beginning inventory. What is the total sales value at the split-off point of the pencil casings? O $13,700 O $15.000 O $20,860 O $21,000
Myers Treats makes institutional cakes. Finished cakes must pass through 2 departments: Mixing and Baking. Cake batter is processes in Mixing dept and transferred to Baking dept. There were 500 gallons of partially mixed batter in the Mixing Dept inventory on Aug 1. The batter was 100% complete with respect to direct materials but only 30% with respect to conversion. Manufacturing costs assigned to the inventory carried over from July totaled $1800. During August, mixing dept started 11,500 new gallons of batter. August direct materials cost in the mixing dept totaled $34, 500 and conversion costs totaled $22,800. Ending inventory on Aug 31 consisted of 600 partially mixed batter. These units were 100% complete with respect to direct materials and 25% complete with respect to conversion. a. Make a schedule showing (1) gallons of mix transferred from mixing to baking in august and (2) gallons of mix started and completed by the mixing dept in August b. Compute the equivalent units of…
Business AccountingQ&A LibraryCheetah Accessories uses four departments to produce handles for kitchen cabinets: Formingrequires mixing the raw materials, Moulding, Spraying and Drying. After leaving the DryingDepartment, the handles are packaged and sent to the Finished Goods warehouse for shipment toretail outlets.The following data relates to the Spraying Department for the month of June:During the month, 2,000 handles valued at $275 each were transferred from the MoldingDepartment to the Spraying Department.Other production costs incurred during the month are summarized as follows:Direct Materials AddedDirect Manufacturing WagesManufacturing Overhead$171,000$425,600$205,200Process inspection occurs during the process and normally no losses are expected at this stage.However, during the month 200 handles were rejected at inspection. Rejected units from thisdepartment are sold as scrap at $400 each. These units had reached the following degree ofcompletion:Transfer from…