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 20, Problem 20.29E
Backflush costing, two trigger points, completion of production and sale (continuation of 20-27). Assume the same facts as in Exercise 20-27, except now Grand Devices uses only two trigger points for making entries in the accounting system:
- Completion of good finished units of product
- Sale of finished goods
The inventory account is confined solely to finished goods. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.
- 1. Prepare summary
journal entries for August, including the disposition of under- or overallocated conversion costs.
Required
- 2.
Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.
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Students have asked these similar questions
Men of Culture Company has a process cost system and uses the weighted-average method. The following information is applicable for the month of September. (refer to image) Base on this information, the cost of the units completed is:
a. P135,000
b. P113,600
c. P107,800
d. P120,250
e. Some other answer
The cost of the ending WIP inventory is
a. P27,200
b. P39,200
c. P21,400
d. P32,400
e. Some other answer
Problem 8-59 (Static) Prepare a Production Cost Report: Weighted-Average Method (LO 8-3, 4)
Mercier Manufacturing produces a plastic part in three sequential departments: Extruding, Fabricating, and Packaging. Mercier uses
the weighted-average process costing method to account for costs of production in all three departments. The following information
was obtained for the Fabricating Department for the month of September.
Work in process on September 1 had 15,000 units made up of the following:
Direct materials
Direct labor
Prior department costs transferred in from the
Extruding Department
Costs added by the Fabricating Department
Direct materials.
Direct labor
Manufacturing overhead.
Work in process, September 1
During September, 75,000 units were transferred in from the Extruding Department at a cost of $356,250. The Fabricating Department
added the following costs:
Manufacturing overhead
Total costs added
$ 214, 200
64,800
33,480
$ 312,480
Direct materials
Direct labor…
The processing department at Nash Corporation evaluated the costs associated with manufacturing paper towels for the past month.
Beginning and newly added costs for May are as follows.
Costs in beginning WIP Inventory (from last period)
Costs added to WIP Inventory this period
Total costs to account for
(a)
Your answer is partially correct.
Beginning Balance
Step 3: Account for costs
New DM
New Conversion Costs V
Ending Balance
Total costs
$2,100
13,160
$15,260 $11,100
Show the T-account for Nash's WIP Inventory reflecting all of the appropriate costs above.
WIP Inventory
2100
0
DM
13160
$1,580
15260
9,520
Conversion Costs
Beginning Balance
New DM
New Conversion Costs
Ending Balance
V
$520
3.640
$4,160
13160
0
2100
15260
Chapter 20 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 20 - Why do better decisions regarding the purchasing...Ch. 20 - Name six cost categories that are important in...Ch. 20 - What assumptions are made when using the simplest...Ch. 20 - Give examples of costs included in annual carrying...Ch. 20 - Give three examples of opportunity costs that...Ch. 20 - What are the steps in computing the cost of a...Ch. 20 - Why might goal-congruence issues arise when...Ch. 20 - JIT purchasing has many benefits but also some...Ch. 20 - What are three factors causing reductions in the...Ch. 20 - You should always choose the supplier who offers...
Ch. 20 - Prob. 20.11QCh. 20 - What are the main features of JIT production, and...Ch. 20 - Distinguish inventory-costing systems using...Ch. 20 - Describe three different versions of backflush...Ch. 20 - Discuss the differences between lean accounting...Ch. 20 - The order size associated with the...Ch. 20 - Prob. 20.17MCQCh. 20 - Prob. 20.18MCQCh. 20 - Lyle Co. has only one product line. For that line,...Ch. 20 - Just-in-time inventory assumes all of the...Ch. 20 - Economic order quantity for retailer. Wonder Line...Ch. 20 - Economic order quantity, effect of parameter...Ch. 20 - EOQ for a retailer. The Fabric World sells fabrics...Ch. 20 - EOQ for manufacturer. Sk8 Company produces...Ch. 20 - Sensitivity of EOQ to changes in relevant ordering...Ch. 20 - JIT production, relevant benefits, relevant costs....Ch. 20 - Backflush costing and JIT production. Grand...Ch. 20 - Backflush costing, two trigger points, materials...Ch. 20 - Backflush costing, two trigger points, completion...Ch. 20 - Prob. 20.30PCh. 20 - Prob. 20.31PCh. 20 - Prob. 20.32PCh. 20 - Prob. 20.33PCh. 20 - JIT purchasing, relevant benefits, relevant costs....Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Supply-chain effects on total relevant inventory...Ch. 20 - Backflush costing and JIT production. The Acton...Ch. 20 - Backflush, two trigger points, materials purchase...Ch. 20 - Backflush, two trigger points, completion of...Ch. 20 - Lean accounting. Reliable Security Devices (RSD)...Ch. 20 - JIT production, relevant benefits, relevant costs,...
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