Concept explainers
Problem 20-5BA FIFO: Process cost summary; equivalent units; cost estimates C3 C4 P4
Refer to the information in Problem 20-4B. Assume that Switch uses the FIFO method to account for its
• Beginning work in process consists of 10.000 units that were 75% complete with respect to direct materials and 60% complete with respect to conversion.
* Of the 220,000 units transferred out, 10,000 were from beginning work in process: me remaining 210,000 were units started and completed during January.
Required
1. Prepare the Cutting department's process cost summary for January using FIFO. Round cost per EUP to three decimal places.
Check (1: Conversion EUP, 226.000
2. Prepare the
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- Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?arrow_forward(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.arrow_forwardREQUIREMENTS Part I - Compute for the Equivalent Units of Production (EUP) for each independent case by preparing a Quantity Schedule. Assume that all product costs (materials and conversion costs) are evenly applied throughout the process. Transferred Out In Process, End Note: In process end is equal to 80% of that in Case 1: 22,000 units ? units, 5/8 done In Process, Beg Stage of Completion 10,000 units 1/4 done 50,000 units Placed in Process beginning work in process In Process, End Stage of Completion 12,000 60% done Case 6: In Process, Beg Placed in Process Transferred Out Finished and on Hand In Process, End ? units, 30% done 120,000 units 130,000 units 10,000 units ? units, 25% incomplete Note: In process end is equal to 75% of that in Case 2: In Process, Beg ? units, ¾ incomplete Placed in Process 40,000 units 50,000 units 12,000 units, 50% complete Transferred Out In Process, End beginning work in process Case 3: In Process, Beg 8,000 units, 40% complete 16,000 units, 5/8…arrow_forward
- Question 4 ABC Manufacturing uses activity-based costing. Each product consists of 20 separate parts totaling $95 in direct materials, and requires 2.5 hours of machine time to produce. Additional information is as follows: Acitivity Materials handling Machine operations Assembling Packaging Allocation Base Number of parts Number of hours Number of parts Number of completed products $0.09 $5.22 $0.35 $2.00 Cost Allocation Rate What is the cost of materials handling per product? Enter your response with two decimals but without a comma or $ sign.arrow_forwardV. 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_forwardProblem 2 The Antipolo company operates three departments. Product costs are tracked by department and assigned process costing system. Overhead is applied to production in each department at a rate of 80 percent of direct labor cost. The hereunder T-account information pertains to the department operations submitted by the cost accountant. Work in process - Stripping Dept. 1 20,000 Cost Transf. Work in process - Adhesion Dept. 2 70,000 Cost Transf. 480,000 Beg. Beg. DM 90,000 Trans. In ? DL 80,000 DM 22,600 FO DL Ending 17,000 ? Ending 20,600 FO Work in Process - Packing Dept. 3 150,00 Transf. Fgoods ? Finished Goods 185,000 Cost of sales 770,000 Вeg. CoGmf 880,000 Beg. DM DL Fo 90,000 Ending Ending 40,000 2A The cost of goods transferred out from the Stripping is: a. P173,000 b. P227,000 c. P237,000 d. P273,000 Page 2B The Direct Labor cost incurred in Adhesion Dept. 2 is a. P76,000 b. P95,000 c. P96,000 d. P171,000 2C The direct material cost incurred in Packaging Dept.3 is a.…arrow_forward
- Problem Compute for the equivalent units of production in each of the following cases: Case A In process, Sept. 1 Placed in process In process, Sept. 30 Case B Stage of completion Stage of completion In process, Oct 1 Case C Stage of completion Transferred to Dept Y In process, Oct. 31 Stage of completion In process, Nov. 1 Stage of completion Transferred to stockroom Placed in process In process, Nov. 30 Stage of completion Department 1 8,000 units 14 50,000 units 6,000 units 1/5 Department X 3,000 units 1/3 26,000 units 4,000 1/5 Department A ? 1/5 35,000 units 12,000 units 1/3 Department 2 5,000 units 1/10 12,000 units 1/6 Department Y 2,000 units 1/5 7,000 2/7 Department B 8,000 units 1/8 38,000 units 3,200 units 1/10arrow_forwardBeginning work in process (40% complete) Direct materials. Conversion cost Total cost of beginning work in process Number of units started Number of units completed and transferred to finished goods Ending work in process (75% complete) Current period costs Direct materials Conversion cost Total current period costs a. Reconcile the number of physical units worked on during the period. b. Calculate the number of equivalent units. Required: 1. Using FIFO method of process costing, complete each of the following steps: c. Calculate the cost per equivalent unit. d. Reconcile the total cost of work in process. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Units Req 1D ? 35,900 34,300 21,350 Costs $ 1,331,500 620,800 $ 1,952,300 $ 2,397,400 1,261,500 $ 3,658,900 Using FIFO method of process costing, reconcile the total cost of work in process. Note: Use Equivalent Units rounded to the nearest whole unit and Cost per Equivalent Unit rounded to 5…arrow_forwardTask 2. product passes through processes- A, B and C. 10,000 units at a cost of OMR 1.10 were issued to Process A. The other direct expenses were as follows: PROCESS-A PROCESS-B PROCESS-C Sundry materials Direct labour 1,500 8,000 1,500 6,500 1,500 4,500 Direct expenses 1,000 1,000 1,503 The wastage of process: A was 5% and in process B 4% .The wastage of process 'A' was sold at unit and that of 'B' at OMR 0.50 per unit and that of C, at OMR 1.00. The overhead OMR 0.25 charges were 160% of direct labour. The final product was sold at OMR 10 per unit fetching f1080 on costs, Find the percentage of wastage in Process 'C' perarrow_forward
- 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 19,000arrow_forwardChapter 18: Process Costing - Practice Questions 1) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory Units placed in production Units completed Ending work in process inventory Cost of beginning work in process Direct material costs, current Conversion costs, current 4,500 items, 1/4 complete with regards to conversion costs 15,000 units 17,500 units 2,000 items, 3/4 complete with regards to conversion costs Direct Materials = $3,000; Conversion Costs = $2,250 $16,500 $23,945 Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process. Compute the following using FIFO method: a) Units completed and transferred out. 17,500 units b) Total cost to account for. Beginning WIP+Units in production 4,500+15,000 =19,500 units c) Equivalent units with respect to direct materials and…arrow_forwardQuestion Content Area Use this information about Department G to answer the question that follows. Department G had 1,800 units 25% completed at the beginning of the period, 12,800 units were completed during the period, 1,500 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $30,800 Costs added during period: Direct materials (12,500 units at $9) 112,500 Direct labor 88,550 Factory overhead 50,600 All direct materials are added at the beginning of the process, and the first-in, first-out cost flow method is used. Determine the total cost of the 1,800 units of beginning inventory that were completed during the period. Round the unit cost computation to the nearest cent. a. $45,650 b. $30,800 c. $42,680 d. $47,150arrow_forward
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