MANAGERIAL ACCOUNTING >C<
3rd Edition
ISBN: 9781259948503
Author: Whitecotton
Publisher: MCG CUSTOM
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Question
Chapter 3, Problem 1.2GAP
To determine
Concept introduction:
Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.
Weighted average method:
Weighted average method is one of the methods of process costing, under this method the cost of beginning work in process is mixed with the current period cost and weighted cost and equivalent units are calculated. In other words, the weighted average method does not teat the beginning work in process cost separately.
To prepare:
The Production cost report
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The first production department in a process manufacturing system reports the following unit data.
Beginning work in process inventory
Units started and completed
Units completed and transferred out
Ending work in process inventory
Prepare the production department's equivalent units of production for direct materials under each of the following three separate
assumptions using the weighted average method for process costing.
Total
Equivalent Units of Production (EUP)-Weighted Average Method
1. All direct materials are added to products when processing begins.
Total
Units
25,800 units
60,200 units
86,000 units
16,300 units
Units
Direct Materials
2. Beginning inventory is 30% complete as to direct materials costs. Ending inventory is 80%
complete as to direct materials costs.
Units
Percent
Complete
Direct Materials
Percent
Complete
EUP
3. Beginning inventory is 70% complete as to direct materials…
1. Match each term with its description.
Group of answer choices
Cost of materials or conversion for a specific department during production.
Manufacturing costs of the items purchased by customers.
Number of units produced if each unit was produced sequentially.
Where costs In a process cost system are reported before being applied to the product.
The total of beginning inventory and units started into production.
Detailing listing of the total costs of the product including the value of work in process.
Total of direct material costs and direct labor costs.
Total of direct labor costs, indirect labor costs, indirect material costs, and manufacturing overhead.
Typically related to a particular time period instead of attached to the production of an asset
Product of the total cost per unit and the number of units completed and transferred during the time period.
Conversion Costs?…
Journal entries using process costing.
From the following list of accounts, record the account(s) to be debited and credited for each of the transactions below. Assume that these transactions occur in a company that utilizes a process cost accounting system.
Accounts Accounts
Cost of Goods Sold Payroll
Factory Overhead Various Credits
Factory Overhead—Mixing Accounts Payable
Factory Overhead—Blending Work in Process—Mixing
Finished Goods Work in Process—Blending
Materials
1. Materials and supplies purchased on account..
2. Direct materials issued to both departments and supplies issued to the factory.......................
3. Direct labor cost incurred in both departments and indirect labor in the factory
4.…
Chapter 3 Solutions
MANAGERIAL ACCOUNTING >C<
Ch. 3 - Briefly describe the difference between job order...Ch. 3 - Prob. 2QCh. 3 - Explain the differences between Raw Materials...Ch. 3 - Explain the flow of costs in a process costing...Ch. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Prob. 8QCh. 3 - Prob. 9QCh. 3 - Prob. 10Q
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - Prob. 16QCh. 3 - What triggers the cost of manufacturing to be...Ch. 3 - Prob. 1MCCh. 3 - Prob. 2MCCh. 3 - Prob. 3MCCh. 3 - Prob. 4MCCh. 3 - Prob. 5MCCh. 3 - Prob. 6MCCh. 3 - Prob. 7MCCh. 3 - The primary difference between FIFO and...Ch. 3 - Prob. 9MCCh. 3 - Prob. 10MCCh. 3 - Prob. 1MECh. 3 - Prob. 2MECh. 3 - Prob. 3MECh. 3 - Prob. 4MECh. 3 - Prob. 5MECh. 3 - Calculation Cost per Equivalent unit...Ch. 3 - Prob. 7MECh. 3 - Prob. 8MECh. 3 - Prob. 9MECh. 3 - Prob. 10MECh. 3 - Prob. 11MECh. 3 - Prob. 12MECh. 3 - Calculating Equivalent Units (FIFO) The Cuttilg...Ch. 3 - Compare Weighted-Average and FIFO Process Costing...Ch. 3 - Prob. 15MECh. 3 - Prob. 2ECh. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 16ECh. 3 - Calculating Equivalent Units, Unit Costs, and Cost...Ch. 3 - Prob. 18ECh. 3 - Prob. 19ECh. 3 - Prob. 20ECh. 3 - Prob. 21ECh. 3 - Recording Manufacturing Costs in Process Costing...Ch. 3 - Prob. 1.1GAPCh. 3 - Prob. 1.2GAPCh. 3 - Prob. 2GAPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 3.2GAPCh. 3 - Prob. 4GAPCh. 3 - Prob. 5.1GAPCh. 3 - Prob. 5.2GAPCh. 3 - Prob. 6GAPCh. 3 - Prob. 1.1GBPCh. 3 - Prob. 1.2GBPCh. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Preparing a Process Costing Production Report...Ch. 3 - Prob. 4GBPCh. 3 - Prob. 5.1GBPCh. 3 - Prob. 5.2GBPCh. 3 - Prob. 6GBP
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- Classic manufacturing costing system uses a three-part classification of direct materials, direct manufacturing labor, and manufacturing overhead costs. The following items (in millions) pertain to Classic Corporation. Requirement Prepare an income statement and a supporting schedule of cost of goods manufactured. Begin by preparing the supporting schedule of cost of goods manufactured (in millions). Start with the direct materials and direct labor costs, then indirect manufacturing costs, and complete the schedule by calculating cost of goods manufactured. For Specific Date Work-in-process inventory, January 1, 2020 $12 Direct materials inventory, December 31, 2020 8 Finished-goods inventory, December 31, 2020 11 Accounts payable, December 31, 2020 20 Accounts receivable, January 1, 2020 59 Work-in-process inventory, December 31, 2020 1 Finished-goods inventory, January 1, 2020 46 Accounts receivable, December 31,…arrow_forwardMatch each of the following items A through G with the best numbered description of its purpose. A. Factory Overhead account E. Raw Materials Inventory account B. Process cost summary F. Materials requisition C. Equivalent units of production G. Finished Goods Inventory account D. Work in Process Inventory accounts 1. Notifies the materials manager to send materials to a production department. 2. Holds indirect costs until assigned to production. 3. Hold production costs until products are transferred from production to finished goods (or another department). 4. Standardizes partially completed units into equivalent completed units. 5. Holds costs of finished products until sold to customers. 6. Describes the activity and output of a production department for a period. 7. Holds costs of materials until they are used in production or as factory overhead.arrow_forwardGoodman Productions manufacture coffee tables. They have provided the following visualization to assist in evaluating the applied manufacturing overhead vs. the actual manufacturing overhead incurred during the current fiscal period.arrow_forward
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