Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 17, Problem 17.35P
Equivalent units, comprehensive. Louisville Sports manufactures baseball bats for use by players in the major leagues. A critical requirement for elite players is that each bat they use have an identical look and feel. As a result, Louisville uses a dedicated process to produce bats to each player’s specifications.
One of Louisville’s key clients is Ryan Brown of the Green Bay Brewers. Producing his bat involves the use of three materials—ash, cork, and ink—and a sequence of 20 standardized steps. Materials are added as follows:
Ash: This is the basic wood used in bats. Eighty percent of the ash content is added at the start of the process; the rest is added at the start of the 16th step of the process.
Cork: This is inserted into the bat in order to increase Ryan’s bat speed. Half of the cork is introduced at the beginning of the seventh step of the process; the rest is added at the beginning of the 14th step.
Ink: This is used to stamp Ryan’s name on the finished bat and is added at the end of the process.
Of the total conversion costs, 6% are added during each of the first 10 steps of the process, and 4% are added at each of the remaining 10 steps.
On May 1, 2017, Louisville had 100 bats in inventory. These bats had completed the ninth step of the process as of April 30, 2017. During May, Louisville put another 60 bats into production. At the end of May, Louisville was left with 40 bats that had completed the 12th step of the production process.
- 1. Under the weighted-average method of
process costing , compute equivalent units of work done for each relevant input for the month of May. - 2. Under the FIFO method of process costing, compute equivalent units of work done for each relevant input for the month of May.
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. Louisville Sports manufactures baseball bats for use by players in the major leagues. A critical requirement for elite players is that each bat they use have an identical look and feel. As a result, Louisville uses a dedicated process to produce bats to each player’s specifications. One of Louisville’s key clients is Ryan Brown of the Green Bay Brewers. Producing his bat involves the use of three materials—ash, cork, and ink—and a sequence of 20 standardized steps. Materials are added as follows:
Ash: This is the basic wood used in bats. Eighty percent of the ash content is added at the start of the process; the rest is added at the start of the 16th step of the process.
Cork: This is inserted into the bat in order to increase Ryan’s bat speed. Half of the cork is introduced at the beginning of the seventh step of the process; the rest is added at the beginning of the 14th step.
Ink: This is used to stamp Ryan’s name on the finished bat and is added at the end of the process.
Of the…
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC)
board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals
are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for
soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards.
Each board requires 4 minutes of board assembly time. After each batch is completed, the operator moves the
assembled boards to the final assembly area. This move takes 9 minutes to complete.
The final assembly for each stereo unit requires 18 minutes and is also done in batches of 50 units. A batch of 50
stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the
test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The…
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing
process includes printed circuit (PC) board assembly, final assembly, testing, and
shipping. In the PC board assembly operation, a number of individuals are
responsible for assembling electronic components into printed circuit boards. Each
operator is responsible for soldering components according to a given set of
instructions. Operators work on batches of 50 printed circuit boards. Each board
requires 4 minutes of board assembly time. After each batch is completed, the
operator moves the assembled boards to the final assembly area. This move takes 9
minutes to complete.
The final assembly for each stereo unit requires 21 minutes and is also done in
batches of 50 units. A batch of 50 stereos is moved into the test building, which is
across the street. The move takes 20 minutes. Before conducting the test, the test
equipment must be set up for the particular stereo model. The test setup requires
30 minutes. The…
Chapter 17 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 17 - Give three examples of industries that use...Ch. 17 - In process costing, why are costs often divided...Ch. 17 - Explain equivalent units. Why are equivalent-unit...Ch. 17 - What problems might arise in estimating the degree...Ch. 17 - Name the five steps in process costing when...Ch. 17 - Name the three inventory methods commonly...Ch. 17 - Describe the distinctive characteristic of...Ch. 17 - Describe the distinctive characteristic of FIFO...Ch. 17 - Prob. 17.9QCh. 17 - Identify a major advantage of the FIFO method for...
Ch. 17 - Identify the main difference between journal...Ch. 17 - The standard-costing method is particularly...Ch. 17 - Why should the accountant distinguish between...Ch. 17 - Transferred-in costs are those costs incurred in...Ch. 17 - Theres no reason for me to get excited about the...Ch. 17 - Assuming beginning work in process is zero, the...Ch. 17 - The following information concerns Westheimer...Ch. 17 - Sepulveda Corporation uses a process costing...Ch. 17 - Penn Manufacturing Corporation uses a...Ch. 17 - Kimberly Manufacturing uses a process-costing...Ch. 17 - Equivalent units, zero beginning inventory....Ch. 17 - Journal entries (continuation of 17-21). Refer to...Ch. 17 - Zero beginning inventory, materials introduced in...Ch. 17 - Weighted-average method, equivalent units. The...Ch. 17 - Weighted-average method, assigning costs...Ch. 17 - FIFO method, equivalent units. Refer to the...Ch. 17 - FIFO method, assigning costs (continuation of...Ch. 17 - Operation costing. The Carter Furniture Company...Ch. 17 - Weighted-average method, assigning costs....Ch. 17 - FIFO method, assigning costs. 1. Do Exercise 17-29...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Operation costing. Egyptian Spa produces two...Ch. 17 - Standard-costing with beginning and ending work in...Ch. 17 - Equivalent units, comprehensive. Louisville Sports...Ch. 17 - Weighted-average method. Hoffman Company...Ch. 17 - Journal entries (continuation of 17-36). Required...Ch. 17 - FIFO method (continuation of 17-36). 1. Do Problem...Ch. 17 - Transferred-in costs, weighted-average method...Ch. 17 - Transferred-in costs, FIFO method (continuation of...Ch. 17 - Weighted-average method. McKnight Handcraft is a...Ch. 17 - FIFO method (continuation of 17-41). 1. Complete...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Standard costing, journal entries. The Warner...Ch. 17 - Multiple processes or operations, costing. The...Ch. 17 - Benchmarking, ethics. Amanda McNall is the...
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