Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 5, Problem 5.6SE
Compute equivalent units (
The Frying Department of Ripple Chips had 110,000 partially completed units in work in process at the end of July. All of the direct materials had been added to these units, but the units were only 70% of the way through the conversion process. In addition, 1,050,000 units had been completed and transferred out of the Frying Department to the Packaging Department during the month.
- 1. How many equivalent units of direct materials and equivalent units of conversion costs are associated with the 1,050,000 units completed and transferred out?
- 2. Compute the equivalent units of direct materials and the equivalent units of conversion costs associated with the 110,000 partially completed units still in ending work in process.
- 3. What are the total equivalent units of direct materials and the total equivalent units of conversion costs for the month?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
S5-13 Find unit cost and gross profit on a final product (Learning Objective 5)
Counter Co. produces Formica countertops in two sequential production departments:
Forming and Polishing. The Polishing Department calculated the following costs per
equivalent unit (square feet) on its October production cost report:
Transferred-in
$2.44
Direct Materials Conversion Costs
$0.40
$1.66
Cost per equivalent unit:
During October, 165,000 square feet were completed and transferred out of the
Polishing Department to Finished Goods Inventory. The countertops were subsequently
sold for $13.00 per square foot.
1. What was the cost per square foot of the finished product?
2. Did most of the production cost occur in the Forming Department or in the Polishing
Department? Explain how you can tell where the most production cost occurred.
3. What was the gross profit per square foot?
4. What was the total gross profit on the countertops produced in October?
!
Required information
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.
Direct
Materials
Units
Beginning work in process inventory
70,000
Percent
Complete
60%
Conversion
Percent
Complete
40%
Units started this period
372,000
Completed and transferred out
350,000
Ending work in process inventory
92,000
85%
35%
Exercise 16-9 (Algo) Weighted average: Cost per equivalent unit; costs assigned to output and inventory
LO P1
The production department had the cost information below.
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
$158,320
51,716
$ 210,036
1,062,050
750,904
1,812,954
$ 2,022,990
a. Compute cost per equivalent unit for both direct materials and conversion.
Note: Round "Cost per EUP" to 2 decimal places.
b. Using the…
S18-13 Preparing journal entry
Learning Objective 5
The Mixing Department's production cost report for May shows $12,500 in total
costs, of which $2,500 will remain in the department assigned to the units still in
process at the end of the month. Prepare the journal entry to record the transfer
of costs from the Mixing Department to the Packaging Department.
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
- Northern Defense manufactures radar systems. It has just completed the manufacture of its first newly designed system, RS-32. Manufacturing data for the RS-32 follow: (Click icon to view data) Requirement Calculate the total variable costs of producing 2, 4, and 8 units. Begin by calculating the cumulative total time in labor-hours using the cumulative average-time learning model. (Round the cumulative average time per unit to the nearest whole number.) Cumulative number of Cumulative average time Cumulative total time: per unit: Labor-hours Labor-hours 3700 units 2 4 8 3700 ← Data table Direct material cost Direct manufacturing labor time for first unit Learning curve for manufacturing labor time per radar system Direct manufacturing labor cost Variable manufacturing overhead cost Using the formula for an 85% learning curve, b = In 0.85 In 2 Print = $ $ $ -0.162519 0.693147 81,000 per unit of RS-32 3,700 direct manufacturing labor-hours 85% cumulative average timeª Done 28 per direct…arrow_forwardUse below information for Questions 1 to 4: The smelting department of Company X has following production and cost data for September: Production: Beginning work in process 200 units that are 100% complete as to materials and 88% complete as to conversion costs; units started into production 1,000 units; units transferred out to next department 990 units; ending work in process are 100% complete as to materials and 45% complete as to conversion costs. Manufacturing costs: Beginning work in process TL 8,500 materials, TL9,210 labor and TL2,500 manufacturing overhead costs. In current period, TL50,900 worth of materials, TL25,100 worth of labor and TL38,000 worth of manufacturing overhead costs are incurred. 1-Compute the material cost portion of the ending inventory if the company uses WA method to compute equivalent units. 2-Compute the conversion cost portion of the ending inventory if the company uses FIFO method to compute equivalent units. method to compute equivalent units.…arrow_forwardHarriman Industries manufactures engines for the aerospace industry. It has completed manufacturing the first unit of the new ZX-9 engine design. Management believes that the 1,000 labor hours required to complete this unit are reasonable and is prepared to go forward with the manufacture of additional units. An 80 percent cumulative average-time learning curve model for direct labor hours is assumed to be valid. Data on costs are as follows: Required: 1. Set up a table with columns for cumulative number of units, cumulative average time per unit in hours, and the cumulative total time in hours. Complete the table for 1, 2, 4, 8, 16, and 32 units. (Round hours to one significant digit.) 2. What are the total variable costs of producing 1, 2, 4, 8, 16, and 32 units? What is the variable cost per unit for 1, 2, 4, 8, 16, and 32 units?arrow_forward
- Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.arrow_forwardProcess 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 isarrow_forwardProcess costing Example Ltd uses process costing. Material is introduced at the start of all processes and conversion costs are applied uniformly throughout. Data pertaining to one department for March are as follows: Opening work in process: 6,000 units that are 60% converted, comprising materials $72,000 and conversion cost $45,900 Units started during the period: 16,000 Closing work in process: 4,000 units that are 75% complete Materials costs incurred during the period: $192,000 Conversion costs incurred during the period: $225,000 Required: Using the weighted-average method, calculate the following for the department: The cost per equivalent unit. The cost of goods completed and transferred out of the department during March. The cost of the 31 March work in process inventory in the department.arrow_forward
- 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.)arrow_forwardI have the following information: direct materials $250 and total manufacturing cost $700. Overhead applied to jobs at a rate of 200% of direct labor cost. This is for Chapter 2 job costing in managerial accounting. I am supposed to figure out conversion cost, direct labor cost, and manufacturing overhead. I know the formula for conversion cost= direct labor + manufacturing OH Prime cost= direct labor + direct materials How do I figure out direct labor cost with the given information? The learning objective states calcualte predetermined overhead rate, but I do not have estimated manufacturing cost and estimated labor. Can you please help? Thanks, Erica Gordonarrow_forward1. Gena Company has several processing departments. Costs charged to Department A or January 2020 were as follows. Work in process, January 1: Materials =$37,000 Conversion costs =$18,000 Costs added during the month: Materials $1,462,600 Labor $392,000 Overhead $127,240 Production records show that 25,000 units were in beginning work in process 40% complete as to conversion cost, 435,000 units were started into production, and 40,000 units were in ending work in process, 100% complete as to materials, and 60% complete as to conversion costs. Instructions: • Determine the physical and equivalent units of production • Determine the cost per equivalent unit for Department A • Determine the assignment of costs to goods transferred out and in ending work in process • Do a cost reconciliation. • Prepare the journal entry necessary to transfer the cost of the completed units from Department A to Department B.arrow_forward
- Assume the following information for a company with two production departments. The first department is Milling. Milling Department Beginning work-in-process inventory Units 200 Percent Complete Materials 40% Conversion 30% Units started into production during March units 6,200 Units completed during the period and transferred out units 5800 Ending work-in-process inventory Units 400 Materials 30% Conversion 70% Milling Department cost data: Cost of beginning work-in-process inventory Materials $20,000 Conversion $15,000 Costs added during the period Materials $260,000 Conversion $335,000 Total cost Materials $280,000 Conversion $350,000 1 Using the weighted-average method, the total cost of the ending work-in-process inventory would be closest to: A $597,938 B $32,062 C $8,428 D $184,949 E None of the above.arrow_forwardrlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 12,000 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Assembly Department Beginning work in process inventory 3,000 60% Units started this period 12,000 Units completed and transferred out 10,000 Ending work in process inventory 5,000 85% Cost of beginning work in process Direct materials Conversion Costs added this month Direct materials Conversion Units Percent Complete for Direct Materials Percent Complete for Conversion 40% $ 1,455 1,105 $ 2,560 19,920 20,045 39,965 35% QS 20-13 (Algo) Weighted average: Entry to transfer costs LO P4 Prepare the November 30 journal entry to record the transfer of costs from the Assembly department to the Painting department. Use the weighted average method.arrow_forwardRequired information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 11,000 units during November. The following production activity in both units and costs refers to the Assembly department's November activities. Percent Complete for Direct Materials 60% Percent Complete for Conversion 40% Assembly Department. Beginning work in process inventory. Units started this period Units 2,500 11,000 Units completed and transferred out 9,500 Ending work in process inventory 4,000 85% 35% Cost of beginning work in process. Direct materials $ 1,230 Conversion 510 $ 1,740 Costs added this month 14,250 Direct materials Conversion 15,840 30,090 QS 20-12 (Algo) Weighted average: Assigning costs to output LO P1 Assign costs to the Assembly department's output-specifically, the units transferred out to the…arrow_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
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
How to Estimate Project Costs: A Method for Cost Estimation; Author: Online PM Courses - Mike Clayton;https://www.youtube.com/watch?v=YQ2Wi3Jh3X0;License: Standard Youtube License