Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 5, Problem 5.33AE
Complete five-step procedure in first department (Learning Objective 3)
Paulson Winery in Albany, New York, has two departments: Fermenting and Packaging. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are incurred evenly throughout each process. Data from the month of March for the Fermenting Department are as follows:
| Gallons: | |
| Beginning work in process inventory | 2,100 gallons |
| Started production | 5,860 gallons |
| Completed and transferred out to Packaging in March | 6,560 gallons |
| Ending work in process inventory (80% of the way through the fermenting process) | 1,400 gallons |
| Costs: | |
| Beginning work in process inventory ($2,500 of direct materials and $3,715 of conversion cost) | $6,215 |
| Costs added during March: | |
| Direct materials | $ 9,440 |
| Direct labor | 600 |
| Manufacturing |
1.829 |
| Total costs added during March | $11,869 |
Requirements
- 1. Draw a time line for the Fermenting Department.
- 2. Summarize the flow of physical units and compute the total equivalent units.
- 3. Summarize total costs to account for and compute the cost per equivalent unit for direct materials and conversion costs.
- 4. Assign total costs to units (gallons):
- a. Completed and transferred out to the Packaging Department
- b. In the Fermenting Department ending work in process inventory
- 5. What is the average cost per gallon transferred out of Fermenting Into Packaging? Why would the company’s managers want to know this cost?
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Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process.Data from the month of March for the Fermenting Department are as follows:
Beginning Work in Process Inventory -0- gallonsStarted production 8,000 gallonsCompleted and transferred out to Packing in March 6,550 gallonsEnding Work in Process Inventory 1,450 gallons
Costs:
Beginning Work in Process Inventory $0Costs added during March:Direct materials $104,000Direct labour $ 24,000Manufacturing overhead…
Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing.
Direct materials are added at the beginning of the fermenting process (grapes) and at the end
of the packaging process (bottles). Conversion costs are added evenly throughout each process.
Data from the month of March for the Fermenting Department are as follows:
Beginning Work in Process Inventory
Started production
Completed and transferred out to Packing in March
Ending Work in Process Inventory
-0- gallons
8,000 gallons
6,550 gallons
1,450 gallons
Costs:
$0
Beginning Work in Process Inventory
Costs added during March:
Direct materials
$104,000
$ 24,000
$ 45.390
Direct labour
Manufacturing overhead
Total costs added during March
$173,390
The units still in process are 80% of the way through the fermenting process.
- 1 -
Use the following information for the Exercises below. (Algo)
[The following information applies to the questions displayed below.]
The first production department of Stone Incorporated reports the following for April.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
Units
84,000
442,000
420,000
106, 000
Direct
Materials
Percent
Complete
80%
80%
Conversion
Percent
Complete
20%
30%
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...
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