Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 18P
Interpreting a Report-Weighted-Average Method
Cooperative San Jose’ of southern Sonora State in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its
A hastily prepared report for the Mixing Department for April appears below:
Management would like some additional information about Cooperative San Jose’s operations.
Required:
- What were the Mixing Department’s equivalent units of production for materials and conversion for April?
- What were the Mixing Department’s cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following cost: materials, $67,800; and conversion cost, $30,200. The costs added during the month consisted of: materials, $579,000; and conversion cost, $248,000.
- How many of the units transferred out of the Mixing Department in April were started and completed during that month?
- The manager of the Mixing Department stated, “Materials prices jumped from about $2.50 per unit in March to $3 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3 per units for the month.” Should this manger be rewarded for good cost control? Explain.
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1. What were the Mixing Department's equivalent units of production for materials and conversion for April? 2. What were the Mixing Department's cost per equivalent unit for materials and conversion
for April? The beginning inventory consisted of the following costs: materials, $19, 251; and conversion cost, $9,177. The costs added during the month consisted of: materials, $88, 688; and conversion
cost, $43,523. 3. How many of the units transferred out of the Mixing Department in April were started and completed during that month? 4. The manager of the Mixing Department stated, "Materials
prices jumped from about $2.60 per unit in March to $3.10 per unit in April, but due to good cost control I was able to hold our materials cost to less than $3.10 per unit for the month." Should this
manager be rewarded for good cost control?
Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.
A hastily prepared report for the Mixing Department for April appears below:
Units to be accounted for:
Work in process, April 1 (materials 90% complete;conversion 80% complete)
30,000
Started into production
200,000
Total units to be accounted for
230,000
Units accounted for as follows:
Transferred to next department
190,000
Work in process, April 30 (materials 75% complete;conversion 60% complete)
40,000
Total units accounted for
230,000…
Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in
small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the
production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in
the proper proportions in large vats. The company uses the weighted-average method in its process costing system.
A hastily prepared report for the Mixing Department for April appears below:
Units to be accounted for:
Work in process, April 1 (materials 90% complete;
conversion 80% complete)
Started into production
9,700
31,900
Total units to be accounted for
41,600
Units accounted for as follows:
Transferred to next department
Work in process, April 30 (materials 75% complete;
conversion 50% complete)
Total units accounted for
27,600
14,000
41,600
Cost Reconciliation
o be accounte
Work in…
Chapter 5 Solutions
Introduction To Managerial Accounting
Ch. 5 - Under what conditions would it be appropriate to...Ch. 5 - In what ways are job-order and process costing...Ch. 5 - Why is cost accumulation simpler in a process...Ch. 5 - How many Work in Process accounts are maintained...Ch. 5 - Prob. 5QCh. 5 - Assume that a company has two processing...Ch. 5 - Prob. 7QCh. 5 - Watkins Trophies, Inc., produces thousands of...Ch. 5 - This exercise relates to the Double Diamond Skis’...Ch. 5 - This exercise relates to the Double Diamond Skis’...
Ch. 5 - Prob. 3AECh. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Clopack Company manufactures one product that goes...Ch. 5 - Process Costing Journal Entries. Quality Brick...Ch. 5 - Equivalent Units of Production-Weighted-Average...Ch. 5 - Cost per Equivalent Unit-Weighted-Average Method...Ch. 5 - Assigning costs to Units-Weighted-Average Method...Ch. 5 - Cost Reconciliation Report-Weighted-Average Method...Ch. 5 - Equivalent Units of Production-Weighted-Average...Ch. 5 - Process Costing Journal Entries Chocolateris de...Ch. 5 - Equivalent Units; Cost per Equivalent Unit;...Ch. 5 - Equivalent Units and Cost per Equivalent...Ch. 5 - Equivalent Units of Production-Weighted-Average...Ch. 5 - Comprehensive Exercise; Second Production...Ch. 5 - Equivalent Unit; Assigning Costs; Cost...Ch. 5 - Comprehensive Problem; Second Production...Ch. 5 - Analysis of Work in Process...Ch. 5 - Comprehensive Problem-Weighted-Average Method...Ch. 5 - Comprehensive Proble-Weighted-Average Method...Ch. 5 - Prob. 17PCh. 5 - Interpreting a Report-Weighted-Average Method...
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