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.A, Problem 5E
EXERCISE 4A-5 Computation of Equivalent
MediSecure, Inc., uses the FIFO method in its
Beginning work in process:
| Units in process | 500 |
| Completion with respect to materials | 80% |
| Completion with respect to conversion | 40% |
| Units started into production during the month | 153,600 |
| Units completed and transferred out | 153,700 |
| Ending work in process: | |
| Units in process | 400 |
| Completion with respect to materials | 75% |
| Completion with respect to conversion | 20% |
Required:
Compute the Molding Department’s equivalent units of production for materials and conversion for the period.
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Chapter 18: Process Costing - Practice Questions
1) Pet Products Company uses an automated process to manufacture its pet replica products. For June,
the company had the following activities:
Beginning work in process inventory
Units placed in production
Units completed
Ending work in process inventory
Cost of beginning work in process
Direct material costs, current
Conversion costs, current
4,500 items, 1/4 complete with regards to conversion costs
15,000 units
17,500 units
2,000 items, 3/4 complete with regards to conversion costs
Direct Materials = $3,000; Conversion Costs = $2,250
$16,500
$23,945
Direct materials are placed into production at the beginning of the process and conversion costs are
incurred evenly throughout the process. Compute the following using FIFO method:
a) Units completed and transferred out.
17,500 units
b) Total cost to account for.
Beginning WIP+Units in production
4,500+15,000
=19,500 units
c) Equivalent units with respect to direct materials and…
Exercise 5S-7 (Algo) Equivalent Units of Production and Cost per Equivalent Unit-FIFO Method [LO 5S-6,
LO 5S-7]
Pureform, Incorporated, uses the FIFO method in its process costing system. It manufactures a product that passes through two
departments. Data for a recent month for the first department follow:
Work in process inventory, beginning
Units started in process
Units transferred out
Work in process inventory, ending
Cost added during the month
Units
66,000
629,000
1. Equivalent units of production
2. Cost per equivalent unit
650,000
45,000
Materials
Materials
$ 54,800
$ 876,820
$ 407,680
$ 439,040
The beginning work in process inventory was 70% complete with respect to materials and 55% complete with respect to labor and
overhead. The ending work in process inventory was 50% complete with respect to materials and 30% complete with respect to labor
and overhead.
Required:
1. Compute the first department's equivalent units of production for materials, labor, and overhead for the…
Required information
Heidelberg Fabrication manufactures two products, G-09 and G-35:
Units produced
Direct materials cost per unit
Machine-hours per unit
Production runs per quarter
Machine depreciation
Setup labor
Materials handling
Total
Required:
Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the
plant follow:
G-09
19,900
$ 7
4
144
a. Overhead rate
b. Machine depreciation
b. Setup labor
b. Materials handling
G-35
3,980
$19
$ 107,460
53, 730
42,984
$ 204,174
a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?
Note: Round your answer to 2 decimal places.
b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for
machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver
rates for the proposed system at…
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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