FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Step 1: Introduction and Solution Planning.
VIEW Step 2: (1) Calculation of Equivalent units of production.
VIEW Step 3: (2) Calculation of cost per equivalent units for materials and conversion cost.
VIEW Step 4: (3) Calculation of ending work in process and completed and transferrred out costs.
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- Limpiar Company produces a liquid household cleaning product. The Mixing Department, the first process department, mixes the ingredients required for the cleaning product. The following data are for May: Work in process, May 1 Quarts started Quarts transferred out Quarts in EWIP Direct materials cost Direct labor cost Overhead applied Direct materials are added throughout the process. Ending inventory is 40 percent complete with respect to direct labor and overhead. Required: Prepare a production report for the Mixing Department for May. If an answer is zero, enter "0". Limpiar Company Mixing Department Production Report for May Unit Information Units to account for: 270,000 225,000 45,000 $1,437,000 $169,000 $338,000 Total units to account for Units accounted for: Total units accounted for Work completed Physical Flow Equivalent Unitsarrow_forwardSunspot Beverages, Limited, of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Units Percent Completed Materials Conversion Work in process, beginning 100,000 70% 40% Started into production 477,500 Completed and transferred out 467,500 Work in process, ending 110,000 75% 25% Materials Conversion Work in process, beginning $ 41,300 $ 15,100 Cost added during June $ 442,700 $ 321,500 Required: 1. Calculate the Blending Department's equivalent units of production for materials and conversion in June. 2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. 3.…arrow_forwardSheridan Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process inventory accounts show the following debits. Beginning work in process Direct materials Direct labor Manufacturing overhead Costs transferred in April 30 30 Cooking 30 $0 30 23,940 9,690 35,910 Journalize the April transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Canning $4,560 Date Account Titles and Explanation 10,260 (To record materials used) 7,980 29,480 60,420 (To assign direct labour to production) (To assign overhead to production) (To record transfer of units to the Canning Department) Debit Creditarrow_forward
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