Waterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 for March 2022: Details in connection with costs: Incomplete work (opening): Costs of previous process Direct materials Conversion costs Costs incurred during March 2022: Transferred from previous process Direct materials Conversion costs Production details Units of incomplete work (opening): (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) Units received from the previous process Units completed and transferred Units of incomplete work (closing): (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) R 1 440 000 1 134 000 198 000 108 000 3 096 000 2 034 000 378 000 684 000 4 536 000 Units 30 000 120 000 150 000 (90 000) 60 000

Waterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 for March 2022: Details in connection with costs: Incomplete work (opening): Costs of previous process Direct materials Conversion costs Costs incurred during March 2022: Transferred from previous process Direct materials Conversion costs Production details Units of incomplete work (opening): (100% complete i.r.o. materials; 40% complete i.r.o. conversion costs) Units received from the previous process Units completed and transferred Units of incomplete work (closing): (100% complete i.r.o. materials; 70% complete i.r.o. conversion costs) R 1 440 000 1 134 000 198 000 108 000 3 096 000 2 034 000 378 000 684 000 4 536 000 Units 30 000 120 000 150 000 (90 000) 60 000

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 17E: K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the...

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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.
Lion Corporation uses an activity-based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below: Overhead costs: Equipment depreciation Supervisory expense Equipment depreciation Distribution of Resource Consumption Across Activity Cost Pools: Product C9 $ 47,000 Product UO $ 6,000 Total Supervisory expense 0.60 Activity Cost Pools O $18.00 per MH O $5.30 per MH O $2.82 per MH O $3.18 per MH Mac 0.60 In the second stage, Machining costs are assigned to products using machine- hours (MHS) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: 6,900 Order Filling 3,100 0.10 MHS (Machining) 10,000 b.20 200…
INFORMATIONWaterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 forMarch 2022:Details in connection with costs:RIncomplete work (opening): 1 440 000Costs of previous process 1 134 000Direct materials 198 000Conversion costs 108 000Costs incurred during March 2022: 3 096 000Transferred from previous process 2 034 000Direct materials 378 000Conversion costs 684 000 4 536 000 Production detailsUnitsUnits of incomplete work…
INFORMATIONWaterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 forMarch 2022:Details in connection with costs:RIncomplete work (opening): 1 440 000Costs of previous process 1 134 000Direct materials 198 000Conversion costs 108 000Costs incurred during March 2022: 3 096 000Transferred from previous process 2 034 000Direct materials 378 000Conversion costs 684 000 4 536 000 Production detailsUnitsUnits of incomplete work…
INFORMATIONWaterloo Ltd uses two processes to manufacture desks. The following details are applicable to Process 2 forMarch 2022:Details in connection with costs:RIncomplete work (opening): 1 440 000Costs of previous process 1 134 000Direct materials 198 000Conversion costs 108 000Costs incurred during March 2022: 3 096 000Transferred from previous process 2 034 000Direct materials 378 000Conversion costs 684 000 4 536 000 Production detailsUnitsUnits of incomplete work…
KETT Ltd uses process costing for its main product, Fitez. You are provided with the following data for its assembly division: Physical units (Fitez) Direct materials Conversion costs Beginning work in process (October) 100 $1,000 $400 Started in October 2020 1,100 Completed during October 2020 1,000 Ending work in process (October 2020) 200 Costs added during October 2020 $22,470 $12,000 Degree of completion of beginning work in process: direct material: 50%; conversion costs: 40% Degree of completion of ending work in process: direct material: 60%; conversion costs: 20% KETT uses the First In First Out (FIFO) method of process costing for this division. Q17: The total equivalent units for conversion costs are: 1,000 units 1,070 units 1,150 units 1,200 units 1.100 units
In using FIFO method, Cruz 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 December 2021, Cruz Company presented the following costs on three processes: What is the equivalent units of production (EUP) on Materials in Department 1? 15,000 15,100 16,000 14,200 What is the equivalent units of production (EUP) on Materials in Department 2? 15,100 15,000 15,150 14,800
Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production 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 Units 76,00 874,000 750,000 200,000 $ 494,000 87,000 3,306,000 1,653,000 Direct Materials Percent Complete 100% 100% Conversion Percent Complete 80% $ 581,000 4,959,000 $ 5,540,000 Required: 1. Compute equivalent units of production for both direct materials and conversion. 60%
In using FIFO method, Periwinkle 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 December 2021, Periwinkle Company presented the following costs on three processes: *see image attached* What is the total costs transferred from Department 1 to Department 2? a. P83,070 b. P88,920 c. P92,160 d. None of the above
Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production 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 Units Total costs + Equivalent units of production (from part 1) Cost per equivalent unit of production 69,000 855,000 715,000 209,000 $ 480,480 81,950 3,215,520 1,557,050 Direct Materials Percent Complete 100% 100% Costs EUP Conversion Percent Complete 80% $ 562,430 4,772,570 $ 5,335,000 2. Compute cost per equivalent unit of production for both direct…
Required information [The following information applies to the questions displayed below.] Victory Company uses weighted average process costing. The company has two production 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 Units 67,000 844,000 Direct Materials Percent Complete 100% Conversion Percent Complete 80% 715,000 196,000 100% 90% $ 296,075 133,710 $ 429,785 1,981,425 2,540,490 4,521,915 $ 4,951,700 2. Compute cost per equivalent unit of production for both direct materials and conversion. Cost per equivalent unit of production Total costs + Equivalent units of…
Indigo Company uses weighted-average process costing and adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Complete the following calculation of equivalent units of production for materials and conversion costs. Phisical Units Materials Convertion Cost Completed and Transferred 48,000 ???? ???? Ending work in process inventory ???? ???? ???? Materials ???? ???? ???? Convertion Cost, 75% complete ???? ???? 14,400 Total Units ???? ???? ????