FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 20, Problem 4PSA
Problem 20-4A Weighted average:
Tamar Co. manufactures a single product in two departments: Forming and Assembly. All direct materials are added at the beginning of the forming process. Conversion costs are added evenly throughout each process. During May, the Forming department started 21,600 units, and completed and transferred 22,200 units of product to the Assembly department. The Forming department's 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2.400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department.
Required
1. Prepare the Forming department's process cost summary for May using the weighted-average method.
Check (1) EUP for conversion, 24,120
2. Prepare the
(2) Cost transferred out. 12.664.000
Analysis Component
3. The costing process depends on numerous estimates.
a. Identify two major estimates that determine the cost per equivalent unit.
b. Assume management compensation is based on maintaining low inventory amounts. Is management more likely to overestimate or understimate the percentage complete?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 6
Coco Company manufactures bicycle frames in two departments:cutting and welding.
Coco uses the weighted average method. Manufacturing costs are added uniformly
throughout process. The following are cost and production data for the cutting department
for October:
Production:
Units in process, October 1, 40% complete
Units completed and transferred out
Units in process, October 31, 60% complete
4,000
27,200
8,000
Costs:
Work in process, October 1
Cost added during October
RM32,000
RM608,000
Required:
Prepare a production report for the cutting department.
Question 7
Gorgeous Company had the following production and cost information for it fabrication
department during April (with materials added at the beginning of the fabrication process).
Production:
Units in process, April 1, 50% complete with respect to conversion
Units completed
Units in process, April 30, 60% complete
Costs:
10,000
65,200
12,000
RM
Work in process, April 1
Materials
40,980
Conversion costs
28,920
69,900…
Problem 20-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4
Skip to question
[The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 32,400 units, and transferred 34,200 units of product to the Assembly department. Its 5,400 units of beginning work in process consisted of $92,880 of direct materials and $768,708 of conversion costs. It has 3,600 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $784,080 of direct materials costs and $3,495,492 of conversion costs were charged to the Forming department. The following additional information is available for the Forming department.
Beginning work in process consisted of…
Problem 1
Delta Corporation uses a process cost system and the FIFO cost flow assumption. Production begins in
the Assembly Department where materials are added at the beginning of the process and conversion
costs are incurred uniformly throughout the process.
On December 1, the beginning work in process inventory consisted of 20,000 units, which were 25%
complete (conversion costs) and had a cost of $80,000.
During March, the following occurred:
Materials added
Conversion costs incurred
Units started during March
Units in ending work in process March 31 (30% complete)
Required: Prepare a Production Cost Report for the month ended December 31, 2017.
$260,000
$75,000
65,000
19,000
Chapter 20 Solutions
FUND.ACCT.PRIN.
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. 10QS
Ch. 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 - Prob. 27QSCh. 20 - Prob. 28QSCh. 20 - Prob. 29QSCh. 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. 27ECh. 20 - Prob. 28ECh. 20 - Prob. 29ECh. 20 - Prob. 30ECh. 20 - Prob. 1PSACh. 20 - Prob. 2PSACh. 20 - Prob. 3PSACh. 20 - Problem 20-4A Weighted average: Process cost...Ch. 20 - Problem 20-5AA FIFO: Process cost summary:...Ch. 20 - Prob. 6PSACh. 20 - Prob. 7PSACh. 20 - Prob. 1PSBCh. 20 - Prob. 2PSBCh. 20 - Prob. 3PSBCh. 20 - Prob. 4PSBCh. 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. 1DQCh. 20 - Prob. 2DQCh. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - Explain in simple terms the notion of equivalent...Ch. 20 - Prob. 7DQCh. 20 - Prob. 8DQCh. 20 - Direct labor costs flow through what accounts in a...Ch. 20 - Prob. 10DQCh. 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. 1BTNCh. 20 - Prob. 2BTNCh. 20 - Many companies use technology to help them improve...Ch. 20 - Prob. 4BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the lime to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (A) present and (B) proposed production approaches. (Round percentages to one decimal place.)arrow_forwardQuestion 18 Jublot Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 600 Materials costs $ 7,300 Conversion costs $ 2,300 Percent complete with respect to materials 50 % Percent complete with respect to conversion 10 % Units started into production during the month 9,400 Units transferred to the next department during the month 8,600 Materials costs added during the month $ 196,300 Conversion costs added during the month $ 315,800 Ending work in process inventory: Units in ending work in process inventory 1,400 Percent complete with respect to materials 70 % Percent complete with respect to conversion 40 % The cost per equivalent unit for materials for the month in the first processing department is closest to: $14.48 $15.88…arrow_forwardPROCESS COSTING I Discussion Question J&G Manufacturing makes a single product by way of three separate processes. Details of production for the month ending June 30 were as follows: Process Process 1 Process 2 | Process 3 $390,000 Input material: Material added 16,250 kg $36,750 $92,200 $63,000 Direct Labour cost $57.300 $61,000 $112,800 $97,080 Manufacturing Overhead Normal losses 8% 6% 6% Output |Scrap value of losses 13,250 kg 12,000 kg $16.00/kg| $32.00/kg 13,750 kg The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process. Required: i) The process account for each process: and ii) The abnormal loss/gain account(s) showing J & G Manufacturing true loss/gain.arrow_forward
- Units to be Assigned Costs Question 11 Eve Cosmetics Company consists of two departments, Blending and Filling. The Filling Department received 51,800 ounces from the Blending Department. During the period, the Filling Department completed 53,200 ounces, including 3,500 ounces of work in process at the beginning of the period. The ending work in process inventory was 2,100 ounces. How many ounces were started and completed during the period?fill in the blank 1 ouncesarrow_forwardPROBLEM 16: Cost of Production Report Spiderman Corp. has two departments. The following are the data of the two departments. Quantity Beginning WIP October 1 Incomplete as to materia Complete as to conversion cost Departmant 1 32,500 Department 2 22,500 30% 40% 20% 75% Units started in October Units Completed in October Ending WIP October 31 Complete as to material Incomplete as to conversion cost 120,000 112,500 27,500 60% 0% 80% 60% Costs Beginning WIP Transferred in 287,500 120,000 42,500 Materials 200,000 187,500 Conversion Current Period Transferred in Materials Conversion 875,000 500,000 125,000 300,000 Required: Compute the ending inventory costs for the two departments. • Using Weighted method a. Compute the EUP of the two departments. b. Compute the unit cost of the two departments. c. Compute the costs transferred to out the two departments. d. Compute the ending inventory costs for the two departments.arrow_forwardquivalent Units of Production 0 The Converting Department of Worley Company had 560 units in work in process at the beginning of the period, which were 40% complete. During the period, 11,600 units were completed and transferred to the Packing Department. There were 640 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total Worley Company Number of Equivalent Units of Production Feedback Whole Units 560 ✔ 224 X 11,600 ✓ 640 ✓ Direct Materials Conversion Equivalent Units Equivalent Units 360 X 0 224 X 256 X 256 X 224 X 256 X 256 X Air 2524 Check My Work When are the materials added to the units? How much more needs to be done to the…arrow_forward
- V. Physical Units Data Beginning Work in Process Units Started to WIP 15,000 units 60,000 units Ending Work in Process (100% complete materials, 20% complete for conversion costs 26,000 units Manufacturing Cost Data Beginning work in Process Materials Conversion Costs $ $ 15,000 30,435 Costs added Materials $ $ 180,000 99,645 Conversion Costs Step 1&2. Account for the Physical units and Determine the Equivalent units completed for the month Step 3 Determine the material and conversion costs per unit Step 4 Prepare a cost reconciliationarrow_forwardXe 6-15 Appendix Exercise: FIFO Equivalent Units; Unit Cost LOS 2. Calculate equivalent units for the following categories: transferred-in, materials, 3. Calculate unit costs for the following categories: transferred-in, materials, and and conversion. conversion. Calculate total unit cost. Halligan Company manufactures a product in four departments. Data for the firs department follow: Production: Units in process, July 1, 75% complete Units completed and transferred out Units in process, July 31, 25% complete Costs: Work in process, July 1 Costs added during the month Halligan uses FIFO costing. Required: 60,000 150,000 30,000 $193,500 $500,625 1. Prepare a physical flow analysis for the first department for July. 2. Calculate equivalent units of production for the first department for July. Calculate unit cost for materials, conversion, and in total for the first department for July. 3. 4. Calculate the cost of units transferred out and the cost of ending work in process. 5. Prepare…arrow_forwardAnswer part B Equivalent Units of Production: weighted average method The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 3,400 units in work in process that were 60% complete at the beginning of the period. During the period, 42,800 units were completed and transferred to the Packing Department. There were 1,900 units in process that were 10% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period.$44700 b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production._______________arrow_forward
- QUESTION 17 ACCOUNT Work in Process-Forging Department Date Item Nov. 1 Bal., 1,200 units, 60% completed 30 Direct materials, 8,300 units 30 Direct labor 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 900 units, 70% completed Debit 124,500 18,950 20,196 Credit ? ACCOUNT NO. What is the Direct Materials Cost Per Equvalent Unit? What is the Conversion cost per equivalent unit? What is the cost of the beginning work in process completed during May? What is the cost of the ending work in process? What is the amount of the costs transfered to Finished Goods (or the next department)? Balance Debit 20,856 145,356 164,306 184,502 ? ? Credit The above information concerns production in the Forging Department for November. All direct materials are placed in process at the beginning of production. Do not use $ or commas in your answers.arrow_forwardPROBLEM 16: Cost of Production Report Spiderman Corp. has two departments. The following are the data of the two departments. Quantity Beginning WIP October 1 Incomplete as to material Complete as to conversion cost Department 1 32,500 20% 75% Department 2 22,500 30% 40% 120,000 ? Units started in October Units Completed in October Ending WIP October 31 Complete as to material Incomplete as to conversion cost 112,500 27,500 ? 60% 0% 80% 60% Costs Beginning WIP Transferred in 287,500 120,000 42,500 Materials 200,000 187,500 Conversion Current Period Transferred in Materials 875,000 500,000 125,000 300,000 Conversion Required: 1. Using FIFO method а. Compute the EUP of the two departments. b. Compute the unit cost of the two departments. С. Compute the costs of transferred to out the two departments d. Compute the ending inventory costs for the two departments. 2. Using Weighted method Compute the EUP of the two departments. а. b. Compute the unit cost of the two departments. c. Compute…arrow_forwardPROBLEM 15: The following quarterly cost data have been accumulated for NewDDDManufacturing, Inc.: Raw materials, 1/1/2022 10,000 units at P6.00 Purchases of raw materials 8,500 units at P7.00 11,000 units at P7.50 Raw materials transferred to work in process 21,500 units Work in process, 1/1/2022 5,600 units at P13.50 Direct labor P 250,000 Manufacturing overhead 325,000 Work in process, 3/31/2022 4,200 units at P13.75 If New Delhi uses the FIFO method for valuing raw materials inventories, compute for thecost of goods manufactured for the quarter ended March 31, 2022.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY