Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4, Problem 24E
The November production of MVP’s Minnesota Division consisted of batch P25 (2,000 professional basketballs) and batch S33 (4,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows:
Direct Material:
Batch P25, $42,000, including $2,500 for packaging material; batch S33, $45,000.
Conversion Costs:
Preparation Department, predetermined rate of $7.50 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $.50 per unit. (Only the professional balls are packaged.)
Required:
- 1. Draw a diagram depicting the division’s batch manufacturing process. Refer to Exhibit 4–10 for guidance.
- 2. Compute the November product cost for each type of basketball.
- 3. Prepare
journal entries to record the cost flows during November.
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Students have asked these similar questions
The November production of MVP’s Minnesota Division consisted of batch P25 (2,000 professional basketballs) and batch S33 (4,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows:Direct Material:Batch P25, $42,000, including $2,500 for packaging material; batch S33, $45,000.Conversion Costs:Preparation Department, predetermined rate of $7.50 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $.50 per unit. (Only the professional balls are packaged.)Required:1. Draw a diagram depicting the division’s batch manufacturing process. Refer to Exhibit 4–10 for guidance.2. Compute the November product cost for each type of basketball.3. Prepare journal entries to record the cost flows during November.
Monroe Materials processes a purchased material, PM-20, and produces three outputs, Alpha, Beta, and Gamma. In February, the
costs to process PM-20 are $1,044,000 for materials and $612,000 for conversion costs. The results of the processing follow:
Alpha
Beta
Gamma
Units
Produced
Product
30,500
24,400
6,100
Required:
Assign costs to Alpha, Beta, and Gamma for February using the physical quantities method.
Alpha
Beta
Gamma
Total
Sales Value
per Unit
$ 9.60
18.00
80.00
Answer is complete but not entirely correct.
Cost
Assigned
$ 397,440
$ 596,160
$ 662,400 X
$1,656,000
The November production of MVP’s Minnesota Division consisted of batch P25 (4,000 professional basketballs) and batch S33 (7,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows:Direct Material:Batch P25, $144,000, including $11,000 for packaging material; batch S33, $113,750.
Conversion Costs:Preparation Department, predetermined rate of $6.70 per unit; Finishing Department, predetermined rate of $5.00 per unit; Packaging Department, predetermined rate of $0.80 per unit. (Only the professional balls are packaged.)
Compute the November product cost for each type of basketball. (Round your intermediate and final answers to 2 decimal places.)
Chapter 4 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 4 - Explain the primary differences between job-order...Ch. 4 - List five types of manufacturing in which process...Ch. 4 - Prob. 3RQCh. 4 - What are the purposes of a product-costing system?Ch. 4 - Define the term equivalent unit and explain how...Ch. 4 - List and briefly describe the purpose of each of...Ch. 4 - Show how to prepare a journal entry to enter...Ch. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQ
Ch. 4 - How would the process-costing computations differ...Ch. 4 - Explain the concept of operation costing. How does...Ch. 4 - Prob. 13RQCh. 4 - In each case below, fill in the missing amount.Ch. 4 - Rainbow Glass Company manufactures decorative...Ch. 4 - Terra Energy Company refines a variety of...Ch. 4 - The Evanston plant of Fit-for-Life Foods...Ch. 4 - Idaho Lumber Company grows, harvests, and...Ch. 4 - Otsego Glass Company manufactures window glass for...Ch. 4 - Savannah Textiles Company manufactures a variety...Ch. 4 - The following data pertain to Tulsa Paperboard...Ch. 4 - The November production of MVPs Minnesota Division...Ch. 4 - Timing Technology, Inc. manufactures timing...Ch. 4 - Piscataway Plastics Company manufactures a highly...Ch. 4 - The following data pertain to the Vesuvius Tile...Ch. 4 - Triangle Fastener Corporation accumulates costs...Ch. 4 - Moravia Company processes and packages cream...Ch. 4 - Albany Company accumulates costs for its product...Ch. 4 - Goodson Corporation assembles various components...Ch. 4 - A-1 Products manufactures wooden furniture using...Ch. 4 - The following data pertain to the Hercules Tire...Ch. 4 - Scrooge and Zilch, a public accounting firm in...Ch. 4 - GroFast Company manufactures a high-quality...Ch. 4 - Plasto Corporation manufactures a variety of...Ch. 4 - (Contributed by Roland Minch.) Glass Glow Company...Ch. 4 - Orbital Industries of Canada, Inc. manufactures a...Ch. 4 - Laredo Leather Company manufactures high-quality...
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