Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 18, Problem 24E
Shea Winery- in Pleasant Valley, New York, has two departments: Fermenting and Packaging. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of March for the Fermenting Department are as follows:
Requirements
- 1. Compute the Fermenting Department’s equivalent units of production for direct materials and for conversion costs.
- 2. Compute the total costs of the units (gallons)
- a. completed and transferred out to the Packaging Department.
- b. in the Fermenting Department ending Work-in-Process Inventory.
Refer to the data and your answers from Exercise El8-23.
Requirements
- 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing
overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare thejournal entry ’to record the cost of the gallons completed and transferred out to the Packaging Department.
- 2.
Post the journal entries to the Work-in-Process Inventory—Fermenting T-account. W hat is the ending balance? - 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Department? Why would Shea Winery’s managers want to know this cost?
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Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process.Data from the month of March for the Fermenting Department are as follows:
Beginning Work in Process Inventory -0- gallonsStarted production 8,000 gallonsCompleted and transferred out to Packing in March 6,550 gallonsEnding Work in Process Inventory 1,450 gallons
Costs:
Beginning Work in Process Inventory $0Costs added during March:Direct materials $104,000Direct labour $ 24,000Manufacturing overhead…
Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing.Direct materials are added at the beginning of the fermenting process (grapes) and at the endof the packaging process (bottles). Conversion costs are added evenly throughout each process.Data from the month of March for the Fermenting Department are as follows:
Beginning Work in Process Inventory -0- gallonsStarted production 8,000 gallonsCompleted and transferred out to Packing in March 6,550 gallonsEnding Work in Process Inventory 1,450 gallons
Costs:Beginning Work in Process Inventory $0
Costs added during March:Direct materials $104,000Direct labour $ 24,000Manufacturing overhead $ 45,390Total costs added during March $173,390The units still in process are 80% of the way through the fermenting process.Required:i) Compute the equivalent units for direct materials and for conversion costsii) Compute the total cost of the units (gallons)a) Completed and transferred out to the Packing Department.b)…
Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing.
Direct materials are added at the beginning of the fermenting process (grapes) and at the end
of the packaging process (bottles). Conversion costs are added evenly throughout each process.
Data from the month of March for the Fermenting Department are as follows:
Beginning Work in Process Inventory
Started production
Completed and transferred out to Packing in March
Ending Work in Process Inventory
-0- gallons
8,000 gallons
6,550 gallons
1,450 gallons
Costs:
$0
Beginning Work in Process Inventory
Costs added during March:
Direct materials
$104,000
$ 24,000
$ 45.390
Direct labour
Manufacturing overhead
Total costs added during March
$173,390
The units still in process are 80% of the way through the fermenting process.
- 1 -
Chapter 18 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 18 - Match each costing system characteristic to job...Ch. 18 - Prob. 2TICh. 18 - Prob. 3TICh. 18 - Match each costing system characteristic to job...Ch. 18 - Prob. 5TICh. 18 - The Cutting Department has 6,500 units in process...Ch. 18 - Prob. 7TICh. 18 - Prob. 8TICh. 18 - Prob. 9TICh. 18 - Prob. 10TI
Ch. 18 - Prob. 11TICh. 18 - Castillo Company has three departments: Mixing,...Ch. 18 - Prob. 13TICh. 18 - Prob. 14TICh. 18 - Prob. 15TICh. 18 - Prob. 16TICh. 18 - Prob. 17TICh. 18 - Which company is least likely to use a process...Ch. 18 - Which characteristic is the same in both job order...Ch. 18 - Conversion costs are a. direct materials plus...Ch. 18 - Burton Company uses the weighted-average method in...Ch. 18 - Burton Company uses the weighted-average method in...Ch. 18 - Burton Company uses the weighted-average method in...Ch. 18 - The Assembly Department had 4,500 units of...Ch. 18 - The Mixing Department incurred the following costs...Ch. 18 - Department 1 completed work on 500 units and...Ch. 18 - The manager of Gilbert Company used the production...Ch. 18 - Which statement is accurate concerning the FIFO...Ch. 18 - What types of companies use job order costing...Ch. 18 - What types of companies use process costing...Ch. 18 - What are the primary differences between job order...Ch. 18 - List ways in which job order costing systems are...Ch. 18 - Describe the flow of costs through a process...Ch. 18 - What are equivalent units of production?Ch. 18 - Why is the calculation of equivalent units of...Ch. 18 - What are conversion costs? Why do some companies...Ch. 18 - What is a production cost report?Ch. 18 - What are the four steps in preparing a production...Ch. 18 - Explain the terms to account for and accounted...Ch. 18 - If a company began the month with 50 units in...Ch. 18 - Most companies using process costing systems have...Ch. 18 - What is the weighted-average method for process...Ch. 18 - Prob. 15RQCh. 18 - What is the purpose of the Costs Accounted For...Ch. 18 - What are transferred in costs? When do they occur?Ch. 18 - Prob. 18RQCh. 18 - Department 1 is transferring units that cost...Ch. 18 - Prob. 20RQCh. 18 - Describe ways the production cost report can be...Ch. 18 - Prob. 22RQCh. 18 - Describe the three groups of units that must be...Ch. 18 - Prob. 24RQCh. 18 - Prob. 1SECh. 18 - The Jimenez Toy Company makes wooden toys. The...Ch. 18 - Prob. 3SECh. 18 - Cadwell manufactures cell phones. The conversion...Ch. 18 - Spring Fresh produces premium bottled water....Ch. 18 - Prob. 6SECh. 18 - Prob. 7SECh. 18 - The Mixing Department of Complete Foods had 62,000...Ch. 18 - Prob. 9SECh. 18 - Refer to Short Exercises S18-8 and S18-9. Use...Ch. 18 - Prob. 11SECh. 18 - Prob. 12SECh. 18 - The Mixing Departments production cost report for...Ch. 18 - Prob. 14SECh. 18 - Spring Fresh produces premium bottled water....Ch. 18 - Prob. 16SECh. 18 - For each of the following products or services,...Ch. 18 - Prob. 18ECh. 18 - Complete the missing amounts and labels in the...Ch. 18 - Prob. 20ECh. 18 - Prob. 21ECh. 18 - Color Explosion prepares and packages paint...Ch. 18 - Shea Winery- in Pleasant Valley, New York, has two...Ch. 18 - Shea Winery- in Pleasant Valley, New York, has two...Ch. 18 - Complete the missing amounts in the following...Ch. 18 - On May 31, the Mixing Department ending...Ch. 18 - Refreshing Water Company produces premium bottled...Ch. 18 - Oxford Company had the following transactions in...Ch. 18 - Hartley Company has a production process that...Ch. 18 - Blue Ridge Mountain Manufacturing had the...Ch. 18 - Brians Frozen Pizzas uses FIFO process costing....Ch. 18 - Dee Electronics makes game consoles in three...Ch. 18 - Roan Paper Co. produces the paper used by...Ch. 18 - Prob. 34APCh. 18 - Carla (Carpet manufactures broadloom carpet in...Ch. 18 - Prob. 36APCh. 18 - Cheerful Colors manufactures crayons in a...Ch. 18 - Work Problem P18-33A using the FIFO method. The...Ch. 18 - Prob. 39BPCh. 18 - Smith Paper Co. produces the paper used by...Ch. 18 - Prob. 41BPCh. 18 - Casey Carpet manufactures broadloom carpet in...Ch. 18 - Sea Worthy uses three processes to manufacture...Ch. 18 - Happy Colors manufactures crayons in a three-step...Ch. 18 - Work Problem P18-40B using the FIFO method. The...Ch. 18 - Prob. 46PCh. 18 - Prob. 1TIATCCh. 18 - Billy Davidson operates Billys Worm Firm in...Ch. 18 - Rick Fines and Joe Lopez are the plant managers...
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