FUNDAMENTAL ACCT PRIN CONNECT ACCESS
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
24th Edition
ISBN: 9781266494604
Author: Wild
Publisher: MCG
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Chapter 20, Problem 20QS
To determine

Concept Introduction:

Ending Work in Process of the departments:

The ending work in process of the department can be defined as the units left in the department after the units are transferred to the next department from the total available units. Total available units are the sum of units in the beginning and the units started in the process.

The ending work in process of the department can be calculated as under −

  Ending work in process = Beginning Direct Materials + Beginning Conversion cost                                          + Cost added for Material + Cost added for conversion                                           Transferred to the next department

Ending work in process = Beginning Direct Materials + Beginning Conversion cost + Cost added for Material + Cost added for conversion − Transferred to the next department

Ending work in process inventory accounts for −

  1. Cutting Department
  2. Binding Department

Expert Solution & Answer
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Answer to Problem 20QS

Solution:

Ending work in process inventory accounts for −

  1. Cutting Department = $ 7,100
  2. Binding Department = $ 17,042

Explanation of Solution

The ending work in process inventory accounts for cutting department and binding department are calculated as under −

1. For cutting Department

Given,

  • Beginning Direct Materials = $ 845
  • Beginning Conversion cost = $ 2,600
  • Cost added for Material = $ 8,240
  • Cost added for conversion = $ 11,100
  • Transferred to the binding department = $ 15,685

Ending work in process inventory accounts for cutting Department is −

  Ending work in process = Beginning Direct Materials + Beginning Conversion cost                                          + Cost added for Material + Cost added for conversion                                           Transferred to the binding departmentEnding work in process =$ 845+$ 2,600+$ 8,240+$ 11,100$ 15,685Ending work in process =$ 7,100

2. For Binding Department

Given,

  • Beginning WIP from cutting department = $ 1,200
  • Beginning Direct Materials = $ 1,926
  • Beginning Conversion cost = $ 3,300
  • Cost added for Material = $ 6,356
  • Cost added for conversion = $ 18,575
  • Transferred from cutting department = $ 15,685
  • Transferred to the finished goods = $ 30,000

Ending work in process inventory accounts for cutting Department is −

  Ending work in process = Beginning WIP from cutting department                                          + Beginning Direct Materials + Beginning Conversion cost                                         + Transferred from cutting                                          + Cost added for Material + Cost added for conversion                                           Transferred to the finished goodsEnding work in process =$ 1,200+$ 1,926+ $ 3,300+$ 6,356+$ 18,575+$ 15,685$ 30,000Ending work in process =$ 17,042

Conclusion

Thus, the ending work in process for cutting and binding departments have been determined.

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Chapter 20 Solutions

FUNDAMENTAL ACCT PRIN CONNECT ACCESS

Ch. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Companies such as Apple commonly prepare a process...Ch. 20 - Prob. 15DQCh. 20 - Prob. 16DQCh. 20 - Prob. 17DQCh. 20 - How could a company manager use a process cost...Ch. 20 - Explain a hybrid costing system. Identify' a...Ch. 20 - Prob. 1QSCh. 20 - Prob. 2QSCh. 20 - Process vs. job order operations C1 For each of...Ch. 20 - Physical flow reconciliation C2 Prepare a physical...Ch. 20 - Prob. 5QSCh. 20 - A FIFO: Computing equivalent units C4 Refer to QS...Ch. 20 - Prob. 7QSCh. 20 - Prob. 8QSCh. 20 - Prob. 9QSCh. 20 - Prob. 10QSCh. 20 - Prob. 11QSCh. 20 - Prob. 12QSCh. 20 - Prob. 13QSCh. 20 - Prob. 14QSCh. 20 - Prob. 15QSCh. 20 - Prob. 16QSCh. 20 - A FIFO: Journal entry to transfer costs P4 Refer...Ch. 20 - Prob. 18QSCh. 20 - Weighted average: Assigning costs to output C3...Ch. 20 - Prob. 20QSCh. 20 - Prob. 21QSCh. 20 - Prob. 22QSCh. 20 - Recording costs of materials P1 Hotwax mates...Ch. 20 - Prob. 24QSCh. 20 - Recording costs of factory overhead P1 P3 Prepare...Ch. 20 - Recording transfer of costs to finished goods P4...Ch. 20 - Exercise 20-1 Process vs. job order operations C1...Ch. 20 - Exercise 20-2 Comparing process and job order...Ch. 20 - Prob. 3ECh. 20 - Prob. 4ECh. 20 - Prob. 5ECh. 20 - Prob. 6ECh. 20 - Prob. 7ECh. 20 - Exercise 20-8 Weighted average: Computing...Ch. 20 - Prob. 9ECh. 20 - Prob. 10ECh. 20 - Prob. 11ECh. 20 - Prob. 12ECh. 20 - Exercise 20-13A FIFO: Completing a process cost...Ch. 20 - Exercise 20-14 Production cost flow and...Ch. 20 - Exercise 20-15 Recording product costs P1 P2 P3...Ch. 20 - Prob. 16ECh. 20 - Prob. 17ECh. 20 - Prob. 18ECh. 20 - Prob. 19ECh. 20 - Prob. 20ECh. 20 - Prob. 21ECh. 20 - Exercise 20-22 Recording costs of labor P2 Prepare...Ch. 20 - Prob. 23ECh. 20 - Prob. 24ECh. 20 - Exercise 20-25 Recording cost flows in a process...Ch. 20 - Exercise 20-26 Interpretation of journal entries...Ch. 20 - Prob. 1APSACh. 20 - Prob. 2APSACh. 20 - Prob. 3APSACh. 20 - Problem 20-4A Weighted average: Process cost...Ch. 20 - Problem 20-5AA FIFO: Process cost summary:...Ch. 20 - Prob. 6APSACh. 20 - Prob. 7APSACh. 20 - Prob. 1BPSBCh. 20 - Prob. 2BPSBCh. 20 - Prob. 3BPSBCh. 20 - Prob. 4BPSBCh. 20 - Problem 20-5BA FIFO: Process cost summary;...Ch. 20 - Problem 20-6BAFIFO: Costs per equivalent unit;...Ch. 20 - Problem 20-7BA FIFO: Process cost summary,...Ch. 20 - Prob. 20SPCh. 20 - Prob. 20CPCh. 20 - Prob. 1GLPCh. 20 - Apple has entered into contracts that require the...Ch. 20 - Apple and Google work to maintain high-quality and...Ch. 20 - Prob. 3AACh. 20 - Prob. 1BTNCh. 20 - Prob. 2BTNCh. 20 - Many companies use technology to help them improve...Ch. 20 - Prob. 4BTNCh. 20 - Prob. 5BTNCh. 20 - Prob. 6BTN
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