Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 5, Problem 5.21SE
1.
To determine
To record:
2.
To determine
Posting of journal entries in Bottling Department.
To find: Ending balance in inventory.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following data set is used for S5-14 through S5-18:
Crystal Springs Data Set: Filtration Department
Crystal Springs produces premium bottled water. Crystal Springs purchases artesian
water, stores the water in large tanks, and then runs the water through two processes:
• Filtration, where workers microfilter and ozonate the water
• Bottling, where workers bottle and package the filtered water
During May, the filtration process incurs the following costs in processing
205,000 liters:
Wages of workers operating the filtration equipment....
Wages of workers operating ozonation equipment...
Manufacturing overhead allocated to filtration.
Water......
$ 10,280
$ 11,500
$ 25,500
$118,900
Crystal Springs has no beginning inventory in the Filtration Department.
• your spinigs nee in veyinmy menseny i ime i mison exp
S5-14 Compute cost per liter (Learning Objective 1)
Refer to the Crystal Springs Filtration Department Data Set.
1. Compute the May conversion costs in the Filtration…
Pure Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process.
Costs in beginning Work-in-Process Inventory include transferred in costs of $1,700, direct labor of $600, and manufacturing overhead of $900. March data for the Bottling Department follow:
View the data.
Read the requirements.
Requirement 1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method. (Complete all input fields. Enter a "0" for any zero balances. Round all cost per unit amounts to
the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
UNITS
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Pure Spring Company
Production Cost Report - Bottling…
(Appendix 6A) First-In, First-Out Method
Benson Pharmaceuticals uses a process-costing system to compute the unit costs of the overthe- counter cold remedies that it produces. It has three departments: mixing, encapsulating, and bottling. In mixing, the ingredients for the cold capsules are measured, sifted, and blended (with materials assumed to be uniformly added throughout the process). The mix is transferred out in gallon containers. The encapsulating department takes the powdered mix and places it in capsules (which are necessarily added at the beginning of the process). One gallon of powdered mix converts into 1,500 capsules. After the capsules are filled and polished, they are transferred to bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules.
During March, the following results are available for the first two departments:
Mixing
Encapsulating
Beginning inventories:
Physical units
10…
Chapter 5 Solutions
Managerial Accounting (5th Edition)
Ch. 5 - (Learning Objective 1) Which of the following is...Ch. 5 - (Learning Objective 2) Conversion costs consist of...Ch. 5 - (Learning Objective 2) Which of the following is...Ch. 5 - (Learning Objective 3) Which of the following is...Ch. 5 - Prob. 5QCCh. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QCCh. 5 - Prob. 9QCCh. 5 - Prob. 10QC
Ch. 5 - Compare job costing and process costing (Learning...Ch. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 5 - Determine the physical flow of units (process...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Compute equivalent units (process costing Step 2)...Ch. 5 - Summarize total costs to account for (process...Ch. 5 - Prob. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Continuation of S5-16: Record journal entry and...Ch. 5 - Compute equivalent units in second department...Ch. 5 - Prob. 5.19SECh. 5 - Prob. 5.20SECh. 5 - Prob. 5.21SECh. 5 - Prob. 5.22SECh. 5 - Analyze flow of costs through inventory T-accounts...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.25AECh. 5 - Prob. 5.26AECh. 5 - Continuation of E5-26A: Journal entries (Learning...Ch. 5 - Complete the production cost report in first...Ch. 5 - Prob. 5.29AECh. 5 - Analyze costs and gross profit in a process...Ch. 5 - Prob. 5.31AECh. 5 - Compute equivalent units and assign costs...Ch. 5 - Complete five-step procedure in first department...Ch. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Exercises Group B E5-37B Analyze flow of costs...Ch. 5 - Summarize physical units and compute equivalent...Ch. 5 - Prob. 5.39BECh. 5 - Complete five-step procedure in first department...Ch. 5 - Prob. 5.41BECh. 5 - Prob. 5.42BECh. 5 - Prob. 5.43BECh. 5 - Prob. 5.44BECh. 5 - Record journal entries (Learning Objective 4)...Ch. 5 - Compute equivalent units and assign costs...Ch. 5 - Prob. 5.47BECh. 5 - Sustainability and process costing (Learning...Ch. 5 - Complete five-step procedure and journalize result...Ch. 5 - Complete five-step procedure in second department...Ch. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.53APCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.55APCh. 5 - Process costing in a single processing department...Ch. 5 - Process costing in a first department (Learning...Ch. 5 - Prob. 5.58BPCh. 5 - Prepare a production cost report and journal...Ch. 5 - Prob. 5.60BPCh. 5 - Prob. 5.61SCCh. 5 - Discussion Questions 1. What characteristics of...Ch. 5 - Prob. 5.63ACTCh. 5 - Prob. 5.64ACTCh. 5 - Process costing and hybrid costing issues...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Benson Pharmaceuticals uses a process-costing system to compute the unit costs of the over-the-counter cold remedies that it produces. It has three departments: mixing, encapsulating, and bottling. In mixing, the ingredients for the cold capsules are measured, sifted, and blended (with materials assumed to be uniformly added throughout the process). The mix is transferred out in gallon containers. The encapsulating department takes the powdered mix and places it in capsules (which are necessarily added at the beginning of the process). One gallon of powdered mix converts into 1,500 capsules. After the capsules are filled and polished, they are transferred to bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules. During March, the following results are available for the first two departments: Overhead in both departments is applied as a percentage of direct labor costs. In the mixing department, overhead is 200% of direct labor. In the encapsulating department, the overhead rate is 150% of direct labor. Required: 1. Prepare a production report for the mixing department using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to two decimal places for the unit cost.) 2. Prepare a production report for the encapsulating department using the weighted average method. Follow the five steps outlined in the chapter. (Note: Round to four decimal places for the unit cost.) 3. CONCEPTUAL CONNECTION Explain why the weighted average method is easier to use than FIFO. Explain when weighted average will give about the same results as FIFO.arrow_forwardHealthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600 capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottle receives 50 capsules. During July, the following results are available for the first two departments (direct materials are added at the beginning in both departments): Overhead in both departments is applied as a percentage of direct labor costs. In the Mixing Department, overhead is 200 percent of direct labor. In the Tableting Department, the overhead rate is 150 percent of direct labor. Required: 1. Prepare a production report for the Mixing Department using the weighted average method. Follow the five steps outlined in the chapter. Round unit cost to three decimal places. 2. Prepare a production report for the Tableting Department. Materials are added at the beginning of the process. Follow the five steps outlined in the chapter. Round unit cost to four decimal places.arrow_forwardProcess activity analysis The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: properly filled cans are boxed into cardboard fridge packs. The activity costs associated with these activities for the period are as follows: The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being filled, each can is automatically weighed. If a can is too light, it is rejected, or kicked, from the filling line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filling 6,300,000 cans during the period, of which only 6,000,000 cans are actually packaged. Three hundred thousand cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to decline from 300,000 cans to 63,000 cans, thus increasing the number of filled cans to 6,237,000 [6,000,000 + (300,000 63,000)]. A. Determine the total activity cost per packaged can under present operations. B. Determine the amount of increased packaging activity costs from the expected improvements. C. Determine the expected total activity cost per packaged can after improvements. Round to three decimal places.arrow_forward
- Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Zia Company makes flowerpots from recycled plastic in two departments, Molding and Packaging. Zia uses the weighted average method, and units completed in the Molding department are transferred to the Packaging department. Production unit Information for the Molding department follows. Molding-Direct Materials Beginning work in process inventory Units started this period Ending work in process inventory Production cost information for the Molding department for the same period follows. Units Beginning work in process inventory (direct materials) Direct materials added this period 3,900 27,500 3,000 Req A Req B and C Percent Complete QS 16-18 (Algo) Weighted average: Computing equivalent units and cost per EUP (direct materials) LO P1arrow_forwardCool and Clear Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $2,000, direct labor of $700, and manufacturing overhead of $330. March data for the Bottling Department follow: (Click the icon to view the data.) Read the requirements UND 3 Units to account for: Beginning work-in-process Transferred in Total units to account for Units accounted for: Completed and transferred out Ending work-in-process Total units accounted for COSTS Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process Total costs accounted for Villa 11,000 164,000 175.000 152,000 23,000 175,000 $…arrow_forwardUse the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Zia Company makes flowerpots from recycled plastic in two departments, Molding and Packaging. Zia uses the weighted average method, and units completed in the Molding department are transferred to the Packaging department. Production unit Information for the Molding department follows. Molding-Direct Materials Beginning work in process inventory Units started this period Ending work in process inventory Units 3,900 27,500 3,000 Completed and transferred out Direct materials Ending work in process Direct materials Direct materials costs accounted for Percent Complete 70% Production cost Information for the Molding department for the same period follows. Beginning work in process inventory (direct materials) Direct materials added this period. EUP Cost assignment-Weighted average (Direct Materials Only) Cost per EUP 80% QS 16-19 (Algo) Weighted average:…arrow_forward
- Egyptian Spa produces two different spa products: Relax and Refresh. The company uses three operations to manufacture the products: mixing, blending, and packaging. i (Click the icon to view the additional information.) Requirements (...) = Requirement 1. Calculate the conversion cost rates for each department. Determine the formula and then calculate the conversion cost rate for each department. (Round the conversion cost rate to the nearest cent.) Conversion cost rate The budgeted number of containers and budgeted direct materials cost for each product in May are: i (Click the icon for the budget information.) Dond the requirements 1. Calculate the conversion cost rates for each department. 2. Calculate the budgeted cost of goods manufactured for Relax and Refresh for the month of May. 3. Calculate the cost per container for each product for the month of May. - Xarrow_forwardAdirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,650, direct labor of $470, and manufacturing overhead of $380.August data for the Bottling Department is as follows: Adirondack Mountain Springs Units Transferred In Direct Materials Direct Labor Manufacturing Overhead Total Costs Beginning Work-in-Process Inventory 30% Complete 4,000 $1,650 $470 $380 $2,500 Production started 166,000 $134,400 $32,500 $33,800 $22,920 $223,620 Transferred out 150,000 Ending Inventory 80% complete 20,000 Prepare the production cost report for the Bottling Department for August.(Round your answers to two decimal places when needed and use rounded answers for all…arrow_forwardAdirondack Mountain Springs produces a clean, crisp all natural spring feed bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, put packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred costs of $1,650, direct labor of $470, and manufacturing overhead of $380.August data for the Bottling Department is as follows:Adirondack Mountain Springs Units Transferred In Direct Materials Direct Labor Manufacturing Overhead Total Costs Beginning Work-in-Process Inventory 30% Complete 4,000 $1,650 $470 $380 $2,500 Production started 166,000 $134,400 $32,500 $33,800 $22,920 $223,620 Transferred out 150,000 Ending Inventory 80% complete 20,000 Prepare the production cost report for the Bottling Department for August.(Round your answers to two decimal places when needed and use rounded answers for all…arrow_forward
- Blue Water Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $1,200, direct labor of $600, and manufacturing overhead of $530 March data for the Bottling Department follow (Click the icon to view the data.) Read the requirements Divided by: Total EUP Cost per equivalent unit Costs accounted for Mar. 31 $ Finished Goods Inventory Work-in-Process Inventory-Bottling $ 180,000 $ 0.77 $ Completed and transferred out Ending work-in-process Total costs accounted for Requirement 2. Prepare the journal entry to record the cost of units completed and transferred out. (Record debits first, th Date Accounts Credit Debit 203,050 119,350 $ 19,250 138,600 S 155,000 0.18 S Work-in-Process Inventory-Bottling 172,500 0 36 27,900 S 0 27,900 S 55,800 $…arrow_forwardWay Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly In Its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Components Changeover Machining Setups Finishing Welding Support Inspecting Rework Purchasing Providing space Providing utilities Units produced Welding hours Batches Number of inspections Machine hours Setups Rework orders Purchase orders Required 1 Overhead Cost $ 559,650 411,510 74,000 $1,045,160 $ 288,640 257,600 55,000 601,240 $ $ 194,540 30,800 37,960 $ 263,300 Additional production Information concerning its two product lines follows. Required 2 Model 145 1,200 1,200 455 475 3,350 20 150 365 Driver Number of batches Machine hours Number of setups Required 3 Welding hours Number of inspections Rework orders Purchase…arrow_forwardStormrage company has two processing departments. Units begin in the Firing Department and then are transferred to the Molding Department. Once the units are completed in Molding, the units move to the finished goods warehouse where they remain until sold. Which of the following is the correct journal entry to record $367,000 of units transferred out of Molding? a. Work in Process - Molding Work in Process - Firing b. C. d. Work in Process - Firing Work in Process - Molding Finished Goods Work in Process - Molding Work in Process - Molding Finished Goods 367,000 367,000 367,000 367,000 367,000 367,000 367,000 367,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY