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 17.36P
Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Hoffman Company has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing.
Hoffman Company uses the weighted-average method of
a Degree of completion: direct materials, ?%; conversion costs, 45%.
b Degree of completion: direct materials, ?%; conversion costs, 65%.
- 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
Required
- 2. What issues should the manager focus on when reviewing the equivalent-unit calculations?
- 3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit.
- 4. Assign costs to units completed and transferred out and to units in ending work in process.
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Students have asked these similar questions
Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat
passes through the assembly department and the testing department. This problem focuses on the assembly
department. The process-costing system at Hoffman Company has a single direct-cost category (direct
materials) and a single indirect-cost category (conversion materials are added at the costs). Direct
beginning of the process. Conversion costs are added evenly during the process. When the assembly
department finishes work on each car seat, it is immediately transferred to testing.
Hoffman Company uses the weighted-average method of process costing. Data for the assembly
department for October 2019 are as follows:
Physical Units
(Car Seats)
Direct
Materials
Conversion
Costs
Work in process, October 1ª
4,000
$1,248,000
$ 241,650
Started during October 2019
22,500
Completed during October 2019
26,000
Work in process, October 31b
500
Total costs added during October
$4,635,000
$2,575,125…
Gladden Dock Company manufactures boat docks on an assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. This problem focuses on the Assembly Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. The firm uses FIFO method and the controller prepared the following (correct) equivalent unit calculation.
Unitscompleted
Physical Units
Direct Materials
Conversion
WIP, beginning
70
0
52.5
Started and completed
30
30
30
WIP, ending
10
10
5
Totals
110
40
87.5
Cost per Equiv Unit
$4,000
$16,000
Work in process, beginning inventory: Current Costs:Direct materials $140,000 Direct materials $ 160,000Conversion costs $260,000 Conversion…
Carrie’s Limited has two departments, the assembly department and the testing department in its brake-pad manufacturing plant, where each brake-pad is conveyed through each department.
Carrie’s process-costing system consist of two cost categories: Single direct cost (direct materials) and a single indirect-cost category (conversion costs).
Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each brake-pad, it is immediately transferred to testing. Carrie’s uses the weighted-average method of process costing.
Data for the assembly department for October 2019 are as follows: Physical Units (Brake Pads) Direct Materials Conversion CostsWork in process, October 1x 6,000 $1,200,000 $ 400,750Started during October 2019 21,000Completed during October 2019 23,500Work in process, October 31y 3,500Total costs added during October 2019 $4,600,000 $2,456,500x Degree of completion: direct…
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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