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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Textbook Question
Chapter 18, Problem 18.42P
Scrap at time of sale or at time of production,
Required
Prepare the journal entries for the recognition of scrap, assuming the following:
- a. The value of scrap is immaterial and scrap is recognized at the time of sale.
- b. The value of scrap is material, is related to a specific job, and is recognized at the time of sale.
- c. The value of scrap is material, is common to all jobs, and is recognized at the time of sale.
- d. The value of scrap is material, and scrap is recognized as inventory at the time of production and is recorded at its net realizable value.
18-40 Spoilage in
Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job #10 in August 2017. A total of 46 units were started, and 6 spoiled units were detected and rejected at final inspection, yielding 40 good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are $1,100 per unit. The current disposal price of the spoiled units is $235 per unit. When the spoilage is detected, the spoiled goods are inventoried at $235 per unit.
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Perez Manufacturing purchased raw materials worth
$8,000
on account. The journal entry to record the purchase of raw materials on account is ________. Process costing is used.
A.
debit Raw Materials Inventory,
$8,000;
credit Accounts Payable, $8,000
B.
debit Account Payable,
$8,000;
credit Raw Materials Inventory, $8,000
C.
debit Cash,
$8,000;
credit Raw Materials Inventory, $8,000
D.
debit Raw Materials Inventory,
$8,000;
credit Cash,
Journalize the following entires. Is FOH - machining over or under-applied? Is FOH - Assembly over or under-applied?
(a) Materials purchased on account, $80,000
(b)Depreciation expenses: Machining, $2,000; Assembly, $5,000
(c)Materials requisitioned by: Machining, $4,000 direct and $1,000 indirect materials; Assembly, $3,000 indirect materials
(d)Factory overhead applied: Machining, $2,500; Assembly, $8,400
(e)Direct labor used by Machining, $7,500; Assembly, $1,500
(f)Machining Department transferred $5,000 to Assembly Department; Assembly Department transferred $3,200 to finished goods
(g)Sold goods on account, $6,000; cost of goods sold, $2,000
(c) Complete All Things Brass Work-In-Process Inventory – Polishing Process T-account, clearly showing the ending balance.
(d) Prepare the journal entries for the:▪ assignment of direct materials, direct labour incurred, and the manufacturing overhead applied to the Polishing Process▪ cost of the units completed and transferred out to the Packaging Process
(e) Given that 30% of the unexpected losses were because of pilferage, prepare the abnormal spoilage statement, clearly showing All Things Brass true loss associated with the Polishing Process
Chapter 18 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 18 - Why is there an unmistakable trend in...Ch. 18 - Distinguish among spoilage, rework, and scrap.Ch. 18 - Normal spoilage is planned spoilage. Discuss.Ch. 18 - Costs of abnormal spoilage are losses. Explain.Ch. 18 - What has been regarded as normal spoilage in the...Ch. 18 - Units of abnormal spoilage are inferred rather...Ch. 18 - In accounting for spoiled units, we are dealing...Ch. 18 - Total input includes abnormal as well as normal...Ch. 18 - Prob. 18.9QCh. 18 - The unit cost of normal spoilage is the same as...
Ch. 18 - In job costing, the costs of normal spoilage that...Ch. 18 - The costs of rework are always charged to the...Ch. 18 - Abnormal rework costs should be charged to a loss...Ch. 18 - When is a company justified in inventorying scrap?Ch. 18 - How do managers use information about scrap?Ch. 18 - Prob. 18.16MCQCh. 18 - Which of the following is a TRUE statement...Ch. 18 - Healthy Dinners Co. produces frozen dinners for...Ch. 18 - Fresh Products, Inc. incurred the following costs...Ch. 18 - Normal and abnormal spoilage in units. The...Ch. 18 - Weighted-average method, spoilage, equivalent...Ch. 18 - Weighted-average method, assigning costs...Ch. 18 - FIFO method, spoilage, equivalent units. Refer to...Ch. 18 - FIFO method, assigning costs (continuation of...Ch. 18 - Weighted-average method, spoilage. LaCroix Company...Ch. 18 - FIFO method, spoilage. 1. Do Exercise 18-25 using...Ch. 18 - Spoilage, journal entries. Plastique produces...Ch. 18 - Recognition of loss from spoilage. Spheres Toys...Ch. 18 - Weighted-average method, spoilage. LogicCo is a...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Standard-costing method, spoilage. Refer to the...Ch. 18 - Spoilage and job costing. (L. Bamber) Barrett...Ch. 18 - Reworked units, costs of rework. Heyer Appliances...Ch. 18 - Scrap, job costing. The Russell Company has an...Ch. 18 - Weighted-average method, spoilage. World Class...Ch. 18 - FIFO method, spoilage. Refer to the information in...Ch. 18 - Weighted-average method, shipping department...Ch. 18 - FIFO method, shipping department (continuation of...Ch. 18 - Physical units, inspection at various levels of...Ch. 18 - Spoilage in job costing. Jellyfish Machine Shop is...Ch. 18 - Rework in job costing, journal entry (continuation...Ch. 18 - Scrap at time of sale or at time of production,...Ch. 18 - Physical units, inspection at various stages of...Ch. 18 - Weighted-average method, inspection at 80%...Ch. 18 - Job costing, classifying spoilage, ethics....
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