Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter 4, Problem 16P
PROBLEM 4-16 Comprehensive Problem-Weighted-Average Method LO4-2, LO4-3, LO4-4, LO4-5
Builder Products, Inc., uses the weighted-average method in its
Production data:
Required:
- Compute the equivalent units of production for materials and conversion for May.
- Compute the cost per equivalent unit for materials and conversion for May.
- Compute the cost of ending work in process inventory’ for materials, conversion, and in total for May.
- Compute the cost of units transferred out to the nest department for materials, conversion, and in total for May.
- Prepare a cost reconciliation report for May
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Comprehensive Problem—Weighted-Average Method
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:
Required:
1. Compute the equivalent units of production for materials and conversion for May.
2. Compute the cost per equivalent unit for materials and conversion for May.
3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.
5. Prepare a cost reconciliation report for May.
e.
A cost reconciliation
Problem 6.36 Weighted Average Method, Journal Entries
Muskoge Company uses a process-costing system. The company manufactures a product that is
processed in two departments: Molding and Assembly. In the Molding Department, direct mate-
rials are added at the beginning of the process; in the Assembly Department, additional
materials are added at the end of the process. In both departments, conversion costs are incurred
JECTIVE 156
uniformly throughout the process. As work is completed, it is transferred out. The following
table summarizes the production activity and costs for February:
Molding
Assembly
Beginning inventories:
Physical units
10,000
8,000
Costs:
$ 45,200
Transferred in
Direct materials
Conversion costs
$ 22,000
$ 13,800
$ 16,800
Current production:
Units started
?
25,000
30,000
35,000
Units transferred out
Costs:
Transferred in
Direct materials
Conversion costs
$ 56,250
$103,500
$ 39,550
$136,500
Percentage of completion:
Beginning inventory
Ending…
Weighted Average Method, Journal EntriesSeacrest Company uses a process-costing system. The company manufactures a product that isprocessed in two departments: A and B. As work is completed, it is transferred out. All inputsare added uniformly in Department A. The following summarizes the production activity andcosts for November:
Required:1. Using the weighted average method, prepare the following for Department A: (a) aphysical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs(Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferredout, and (e) a cost reconciliation.
2. CONCEPTUAL CONNECTION Prepare journal entries that show the flow ofmanufacturing costs for Department A. Use a conversion cost control account forconversion costs. Many firms are now combining direct labor and overhead costs intoone category. They are not tracking direct labor separately. Offer some reasons for thispractice.
Chapter 4 Solutions
Managerial Accounting
Ch. 4.A - EXERCISE 4A-1 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-2 Cost per Equivalent Unit-FIFO Method...Ch. 4.A - EXERCISE 4A-3 Assigning Costs to Units-FIFO Method...Ch. 4.A - EXERCISE 4A-4 Cost Reconciliation Report-EIFO...Ch. 4.A - EXERCISE 4A-5 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-6 Equivalent Units of Production-FIFO...Ch. 4.A - EXERCISE 4A-7 Equivalent Units of Production and...Ch. 4.A -
EXERCISE 4A-8 Equivalent Units of Production—FIFO...Ch. 4.A - EXERCISE 4A-9 Equivalent Units; Equivalent Units...Ch. 4.A - PROBLEM 4A-10 Equivalent Units of Production;...
Ch. 4.A - Prob. 11PCh. 4.A - Prob. 12CCh. 4.B - Prob. 1ECh. 4.B - EXERCISE 4B-2 Step-Down Method LO4-11 Madison Park...Ch. 4.B - Prob. 3ECh. 4.B - EXERCISE 4B-4 Direct Method LO4-10 Refer to the...Ch. 4.B - PROBLEM 4B-5 Step-Down Method L04-11 Woodbury...Ch. 4.B - Prob. 6CCh. 4 - Prob. 1QCh. 4 - In what ways are job-order and process costing...Ch. 4 - Why is cost accumulation simpler in a process...Ch. 4 - How many Work in Process accounts are maintained...Ch. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 1AECh. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Prob. 10F15Ch. 4 - Prob. 11F15Ch. 4 - Prob. 12F15Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Prob. 14F15Ch. 4 - Prob. 15F15Ch. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - EXERCISE 4-4 Assigning Costs to...Ch. 4 - EXERCISE 4-5 Cost Reconciliation...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 -
EXERCISE 4-9 Equivalent Units and Cost per...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - PROBLEM 4-16 Comprehensive...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19CCh. 4 - (
CASE 4-20 Ethics and the Manager, Understanding...
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