Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Chapter 5, Problem 5.50BE
Complete five-step procedure in second department (Learning Objective 5)
Brookman Semiconductors experienced the following activity in its Photolithography Department during May. Materials are added at the beginning of the photolithography process.
| Units: | |
| Work in process, May 1 (80% of the way through the process) | 9,000 units |
| Transferred in from the Polishing and Cutting Department during May | 23,000 units |
| Completed during May | ? units |
| Work in process, May 31 (70% of the way through the process) | 2,000 units |
| Costs: | |
| Work in process, May 1 (transferred-in costs, $1,600; direct materials costs, $20,450: and conversion costs, $37,890) | $59,940 |
| Transferred in from the Polishing and Cutting Department during May | 97,600 |
| Direct materials added during May | 53,150 |
| Conversion costs incurred during May | 90,850 |
Requirements
- 1. Summarize flow of physical units and compute total equivalent units for three cost categories: transferred-in, direct materials, and conversion costs.
- 2. Summarize total costs to account for and compute the cost per equivalent unit for each cost category.
- 3. Assign total costs to (a) units completed and transferred to Finished Goods Inventory and (b) units in May 31 Work in Process Inventory.
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Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete
$
80,000
Conversion: 20% complete
24,000
Balance in work in process, August 1
$
104,000
Units started during August
47,000
Units completed and transferred in August
58,000
Work in process (70% complete), August 31
?
Costs charged to Work in Process in August
Direct materials
$
161,000
Conversion costs:
Direct labor
$
110,000
Overhead applied
135,000
Total conversion
$
245,000
Assume materials are added at the start of processing.
Required:
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.)
Required information
Use the following information for the Exercises below. (Algo)
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[The following information applies to the questions displayed below.]The first production department of Stone Incorporated reports the following for April.
Units
Direct Materials
Conversion
Percent Complete
Percent Complete
Beginning work in process inventory
82,000
70%
30%
Units started this period
432,000
Completed and transferred out
410,000
Ending work in process inventory
104,000
85%
35%
Exercise 3-11A (Algo) FIFO: Costs assigned to output LO C2
The production department had the cost information below.
Beginning work in process inventory
Direct materials
$ 206,850
Conversion
35,490
$ 242,340
Costs added this period
Direct materials
1,512,630
Conversion
991,230
2,503,860
Total costs to account for
$ 2,746,200
(a) Calculate the costs per equivalent unit of production for both direct materials and conversion for the…
Process Costing
A department begins the month with 100 units at a cost of $7,500 and 25% complete in goods in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in the process which are 50% complete. Using FIFO, the ending balance in the Work in Process Inventory is
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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