EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
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Chapter 21, Problem 3PSA
a.
To determine
Job order costing is a cost evaluation method that considers each job separate and assign cost to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To compute: (1) Physical units of production, (2) Equivalent units of production, (3) Unit cost, and (4) assigned costs.
b.
To determine
Job order costing:
Job order costing is a cost evaluation method that considers each job separate and assign cost to them. It is mostly applicable in the service industry wherein every job has a separate requirement.
To prepare: The production cost report.
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[The following information applies to the questions
displayed below.]
Victory Company uses weighted average process costing.
The company has two production processes. Conversion
cost is added evenly throughout each process. Direct
materials are added at the beginning of the first process.
Additional information for the first process follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory.
Beginning work in process inventory.
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Cost per equivalent unit of production
Units
Total costs
+ Equivalent units of production (from part 1)
Cost per equivalent unit of production
78,000
876,000
760,000
194,000
$ 496,080
87,640
3,319,920
1,665, 160
Direct
Materials.
Percent
Complete
100%
100%
2. Compute cost per equivalent unit of production for both direct
materials and conversion.
Costs
EUP
$ 583,7:
4,985,0…
Computing Equivalent Units, FIFO and Weighted Average Cost Methods
Assume each of the following conditions concerning the data given:
All materials are added at the beginning of the process.
All materials are added at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process, but ignore that fact for purposes of this solution.)
Half of the materials are added at the beginning of the process, and the balance of the materials is added when the units are three-fourths completed.
In all cases, labor and factory overhead are added evenly throughout the process.
[The following information applies to the questions
displayed below.]
Victory Company uses weighted average process costing.
The company has two production processes. Conversion
cost is added evenly throughout each process. Direct
materials are added at the beginning of the first process.
Additional information for the first process follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Cost assignment-Weighted average
Completed and transferred out
Direct materials
Conversion
Ending work in process
Direct materials
Conversion
Total costs accounted for
Units
EUP
78,000
876,000
760,000
194,000
$ 496,080
87,640
3,319,920
1,665, 160
Direct
Materials.
Percent
Complete
100%
3. Assign costs to the department's output-specifically, to
the units transferred out and to…
Chapter 21 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 21 - Prob. 1QCh. 21 - Prob. 2QCh. 21 - Prob. 3QCh. 21 - Prob. 4QCh. 21 - Prob. 5QCh. 21 - Prob. 6QCh. 21 - Prob. 7QCh. 21 - Prob. 8QCh. 21 - Prob. 9QCh. 21 - Prob. 10Q
Ch. 21 - Prob. 11QCh. 21 - Prob. 12QCh. 21 - Prob. 13QCh. 21 - Prob. 14QCh. 21 - Prob. 15QCh. 21 - Prob. 16QCh. 21 - Prob. 17QCh. 21 - Prob. 18QCh. 21 - Prob. 19QCh. 21 - Prob. 20QCh. 21 - Prob. 21QCh. 21 - Prob. 22QCh. 21 - Prob. 1BECh. 21 - Prob. 2BECh. 21 - Prob. 3BECh. 21 - Prob. 4BECh. 21 - Prob. 5BECh. 21 - Prob. 6BECh. 21 - Prob. 7BECh. 21 - Prob. 8BECh. 21 - Prob. 9BECh. 21 - Prob. 10BECh. 21 - Prob. 11BECh. 21 - Prob. 12BECh. 21 - Prob. 1DIECh. 21 - Prob. 2DIECh. 21 - Prob. 3DIECh. 21 - Prob. 4DIECh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Prob. 3ECh. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Prob. 9ECh. 21 - Prob. 10ECh. 21 - Prob. 11ECh. 21 - Prob. 12ECh. 21 - Prob. 13ECh. 21 - Prob. 14ECh. 21 - Prob. 15ECh. 21 - Prob. 17ECh. 21 - Prob. 18ECh. 21 - Prob. 19ECh. 21 - Prob. 20ECh. 21 - Prob. 1PSACh. 21 - Prob. 2PSACh. 21 - Prob. 3PSACh. 21 - Prob. 4PSACh. 21 - Prob. 5PSACh. 21 - Prob. 6PSACh. 21 - Prob. 7PSACh. 21 - Prob. 2EYCTCh. 21 - Prob. 5EYCTCh. 21 - Prob. 6EYCT
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