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 7PSB
Problem 20-7BA
FIFO: Process cost summary, equivalent units, cost estimates
C2 C3 C4 P4
Belda Co. mates organic juice in two departments: cutting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of
Required
- Prepare the cutting departments process cost summary for March using the FIFO method.
- Prepare the
journal entry dated March 31 to transfer the cost of completed units to the blending department, - The company provides incentives to department managers by paying monthly bonuses based on their success in controlling costs per equivalent unit of production, Assume that the production department overestimates the percentage of completion for units in ending inventory with the result that its
equivalent units of production for March are overstated, What impact does this error have on bonuses paid to the managers of the production department? What impact, if any, does this error have on these managers' April bonuses?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question
JYD Company uses two departments to produce a detergent. It uses the weighted average process costing and has just completed the production for the month of April. Relevant data for its two departments follow:
Mixing Department
Finishing Department
Quantity units:
Work in process, beginning
1,000
900
Stage of completion
50%
50%
Started in process
3,000
0
Transferred to next department
3,500
3,500
Work in process, ending
500
600
Stage of completion
20%
50%
Costs data:
In process, beginning
Cost from preceding department
-
$1,130
Materials
$800
1,800
Labor
1,200
3,200
Overhead
1,000
2,000
Current costs
Cost from preceding department
-
$?
Materials
$2,800
$5,580
Labor
4,200
5,000
Manufacturing Overhead
3,320
2,100
Required:
a. The cost of beginning Work in process in Finishing Department is
b. The…
Question 2Vaasa Chemicals makes a product by way of two processes – Mixing & Refining. Its processcosting system in the Mixing Department has two direct cost categories (Chemical P &Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of theoperations in the Mixing Department and Chemical Q is added when the product is threefourths (75%) completed in the Mixing Department. The following information pertains to theMixing department for July:
UnitsWork in process inventory, July 1 0Started production 50,000Completed and transferred to Refining Department 35,000Ending work in process inventory [two-thirds (66⅔%)of the way throughthe Mixing process] 15,000
CostsBeginning WIP inventory $0Costs added during July:Chemical P 250,000Chemical Q 70,000Direct Labour 32,000Manufacturing overhead 103,000Required:i) Compute the equivalent units in the Mixing Department for direct materials and forconversion costsii) Compute :a) the cost of the units completed and…
Question
JYD Company uses two departments to produce a detergent. It uses the weighted average process costing and has just completed the production for the month of April. Relevant data for its two departments follow:
Mixing Department
Finishing Department
Quantity units:
Work in process, beginning
1,000
900
Stage of completion
50%
50%
Started in process
3,000
0
Transferred to next department
3,500
3,500
Work in process, ending
500
600
Stage of completion
20%
50%
Costs data:
In process, beginning
Cost from preceding department
-
$1,130
Materials
$800
1,800
Labor
1,200
3,200
Overhead
1,000
2,000
Current costs
Cost from preceding department
-
$?
Materials
$2,800
$5,580
Labor
4,200
5,000
Manufacturing Overhead
3,320
2,100
Required:
a. The cost of completed and transferred out units in Mixing department is…
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
- Exercise 1: Process costingSelzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recordedin the Blending Department during July:Production data:TotalUnits in process, July 1(materials 100% complete; conversion 30% complete)10,000Units started into Production170,000Units complete and transferred to Packaging?Units in process, July 31 (materials 100% complete; conversion 40% complete)20,000Cost data:Work in process inventory, July 1:Materials cost$ 8,500Conversion cost4,900$13,400Cost added during the month:Materials cost$139,400Conversion cost244,200383,600Total Cost$397,000All materials are added at the beginning of work in the Blending Department. Required:Prepare a production report in weighted average method and FIFO method for the Blending Department for July. Use the following 3 steps as a guide in preparing your report:1.Prepare a quantity schedule and compute the equivalents units2.Compute the…arrow_forwardChapter 6 - Question 49 : Production Report, Weighted Average Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing, and Bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in gallons.): Production: Units in process, April 1, 60% complete 33,500 Units completed and transferred out 43,000 Units in process, April 30, 20% complete 12,000 Costs: WIP, April 1 $ 80,600 Costs added during April 350,700 Required: Prepare a production report for the cooking department. Round cost per equivalent unit value to the nearest cent and use rounded value in intermediate calculations. Please check my answers in the attached 2 imagesarrow_forwardProblem 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_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_forwardQuestion 2 Vaasa Chemicals makes a product by way of two processes - costing system in the Mixing Department has two direct cost categories (Chemical P & Chemical Q) and one conversion costs pool. Chemical P is introduced at the start of the operations in the Mixing Department and Chemical Q is added when the product is three- fourths (75%) completed in the Mixing Department. The following information pertains to the Mixing department for July: Mixing & Refining. Its process Units Work in process inventory, July 1 Started production Completed and transferred to Refining Department Ending work in process inventory [two-thirds (66½%)of the way through the Mixing process] 50,000 35,000 15,000 Costs Beginning WIP inventory $0 Costs added during July: Chemical P 250,000 Chemical Q 70,000 Direct Labour 32,000 Manufacturing overhead 103,000 Required: i) Compute the equivalent units in the Mixing Department for direct materials and for conversion costsarrow_forwardUnit Information with BWIP, FIFO Method Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: Production: Units in process, July 1, 70% complete* 10,100 Units completed and transferred out 90,000 Units in process, July 31, 80% complete* 15,000 * With respect to conversion costs. Required: Question Content Area 1. Prepare a physical flow schedule for July. Jackson ProductsPhysical Flow ScheduleFor the Month of July Units to account for: Units, beginning work is process (70% complete) Units started during July Total units to account for fill in the blank 2bb1ebfa004eff9_5 Units accounted for: Units completed and transferred out: Started and completed From beginning work in process From beginning work in…arrow_forward
- 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…arrow_forwardProblem 3. FIFO Costing Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2020. Department 1 Department 2 UNITS: Beginning work in process: Conversion costs, 65% complete Conversion costs, 40% complete Started in production during May Transferred out to Department 2 Transferred out to Finished Goods Ending work in process: 5,000 7,000 50,000 45,000 Eus 43,000 Conversion costs, 75% complete Conversion costs, 50% complete 10,000 200 9,000 COSTS: Beginning work in process: 07 21 Transferred in costs from prior department Added this department: P30,000 Direct Material P13,000 8,500 Manufacturing Overhead (applied) 10.975 14,600 9,200 11.760 P65.560 Direct Labor Total bivia Added during the period: P32.475 P65,000 90,000 52,825 Direct materials P45,000 70,000 Direct Labor Manufacturing Overhead (applied) 39,962 w doube P207.825 P154.962 Total Additional Information: while conversion costs are applied evenly during the…arrow_forwardUnit Information with BWIP, FIFO Method Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows: Production: Units in process, July 1, 60% complete* 10,100 Units completed and transferred out 80,000 Units in process, July 31, 80% complete* 15,100 * With respect to conversion costs. Required: Question Content Area 1. Prepare a physical flow schedule for July. Jackson ProductsPhysical Flow ScheduleFor the Month of July Units to account for: Total units to account for Units accounted for: Units completed and transferred out: Total units accounted for 2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box…arrow_forward
- Equivalent Units Calculations—Weighted Average Method Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at the beginning of the process in the Compounding Department. Conversion costs are added evenly throughout each process. Ferris uses the weighted average method of process costing. In the Compounding Department, beginning work in process was 2,000 pounds (70% processed), 18,500 pounds were started in process, 18,000 pounds transferred out, and ending work in process was 30% processed. Calculate equivalent units for March 2016 for the Compounding Department. Ferris CorporationFlow of Units and Equivalent Units Calculation, March 2016 Equivalent Units % Workdone DirectMaterials % WorkDone ConversionCosts Complete/Transferred Answer Answer Answer Answer Answer Ending Inventory Answer Answer Answer Answer Answer Total Answer Answer Answerarrow_forwardProblem 3. FIFO Costing Papaya Company manufactures soap in two departments in a continuous process. The following data is available for May 2020. Department 1 Department 2 UNITS: Beginning work in process: Conversion costs, 65% complete 5,000 Conversion costs, 40% complete Started in production during May Transferred out to Department 2 Transferred out to Finished Goods 7,000 50,000 45,000 43,000 Ending work in process: Conversion costs, 75% complete Conversion costs, 50% complete COSTS: Beginning work in process: Transferred in costs from prior department Added this department: 10,000 9,000 P30,000 P13,000 8,500 Manufacturing Overhead (applied) 10.975 P32,475 14,600 9,200 11.760 P65,560 Direct Material Direct Labor Total Added during the period: Direct materials P65,000 90,000 P45,000 70,000 Direct Labor Manufacturing Overhead (applied) 39.962 Total 52,825 P207,825 P154,962 Additional Information: All direct materials are added at the beginning of the process of each department while…arrow_forwardProblem 9 Alonzo Manufacturing uses a process costing system to accumulate, costs related to the production of "Supergrow" an industrial strength hair grower. Material costs and conversion costs for last quarter are provided below: Costs in beginning work in process Current costs for the quarter Materials P 6,544 281,656 Conversion 16,803 344,817 The equivalent bottles of production under the weighted average method are 262,000 for materials and 258,300 for conversion costs. All materials are added at the beginning of the production process. Beginning work in process was composed of 3,600 bottles that were 80% complete with respect to conversion costs. Required: 1. If the number of bottles completed during the quarter is 255,200, what is the total cost that should be assigned to these bottles under the weighted average method? • 2. If Alonzo had used the FIFO method, total cost assigned to ending work in process would have been P 11,597. If bottles completed during the quarter are…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY