Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 6, Problem 40BEB
Use the following information for Brief Exercises 6-39 and 6-40:
Saludable Inc. produces a freeze-dried kale powder. Drying is the first department, and its output is measured in pounds. Saludable uses the FIFO method. All
6-40 (Appendix 6A) FIFO; Production Report
Refer to the information for Saludable Inc. on the previous page.
Required:
Prepare a production report.
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Berry Company has a cycle time of 2 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of August: RIP beginning, including P17,040 of conversion cost, P26,400; FG beginning, including P17,400 of conversion cost; P27,000; Raw materials purchased on account, P447,000; RIP end, including P18,360 of conversion cost, P28,600; FG end, including P14,400 of conversion cost, P22,000. Direct labor P213,000; Factory overhead P192,000. Which of the following entries is incorrect?
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Debit COGS 405,000; credit Accrued Payroll 213,000 and FOH Control 192,000.
Debit FG 3,000; credit RIP 1,320 and COGS 1,680.
Debit RIP 447,000; credit Accounts Payable P447,000.
Debit FG 446,120; credit RIP 446,120.
Friedman Company has a production process that involves three processes. Units move through the processes in this order: cutting, stamping, and then polishing. The company had the following transactions in November:
View the transactions.
Prepare the joumal entries for Friedman Company. (Record debits first, then credits. Exclude explanations from journal entries.)
1. Cost of units completed in the Cutting Department, $14,000
Date
Nov. 30
Accounts
Debit
Credit
Transactions
1. Cost of units completed in the Cutting Department, $14,000
2. Cost of units completed in the Stamping Department, $28,000
$39,000
3. Cost of units completed in the Polishing Department,
4. Sales on account, $40,000
5. Cost of goods sold is 80% of sales
- X
The debits to Work-in - Process for Department #2 for the month of April of the current year,
together with information concerning production, are presented below. All direct materials come
from Department #1. The units completed include the 1, 200 in process at the beginning of the
period. Department #2 uses FIFO costing. Work-in - Process - Department #2 Debit Credit 1, 200
units, 1/4 completed $ 1,200 Product X, 6,200 units ? ? ? ? From Department 1, 6,000 units 3,600
Direct Labor 8,000 Factory OH 4,800 1,000 units, (1)/(2) complete ? ? ? ? The cost of goods
transferred to finished goods is:
Chapter 6 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 6 - Describe the differences between process costing...Ch. 6 - Prob. 2DQCh. 6 - What are the similarities in and differences...Ch. 6 - Prob. 4DQCh. 6 - How would process costing for services differ from...Ch. 6 - How does the adoption of a JIT approach to...Ch. 6 - What are equivalent units? Why are they needed in...Ch. 6 - Under the weighted average method, how are...Ch. 6 - Prob. 9DQCh. 6 - Prob. 10DQ
Ch. 6 - Prob. 11DQCh. 6 - How is the equivalent unit calculation affected...Ch. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Process costing works well whenever a....Ch. 6 - Job-order costing works well whenever a....Ch. 6 - Prob. 3MCQCh. 6 - To record the transfer of costs from a prior...Ch. 6 - The costs transferred from a prior process to a...Ch. 6 - During the month of May, the grinding department...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - Use the following information for Multiple-Choice...Ch. 6 - During May, Kimbrell Manufacturing completed and...Ch. 6 - During June, Kimbrell Manufacturing completed and...Ch. 6 - For August, Kimbrell Manufacturing has costs in...Ch. 6 - For September, Murphy Company has manufacturing...Ch. 6 - During June, Faust Manufacturing started and...Ch. 6 - During July, Faust Manufacturing started and...Ch. 6 - Assume for August that Faust Manufacturing has...Ch. 6 - For August, Lanny Company had 25,000 units in...Ch. 6 - When materials are added either at the beginning...Ch. 6 - With nonuniform inputs, the cost of EWIP is...Ch. 6 - Transferred-in goods are treated by the receiving...Ch. 6 - Basic Cost Flows Gardner Company produces 18-ounce...Ch. 6 - Equivalent Units, No Beginning Work in Process...Ch. 6 - Unit Cost, Valuing Goods Transferred Out and EWIP...Ch. 6 - Weighted Average Method, Unit Cost, Valuing...Ch. 6 - Physical Flow Schedule Golding Inc. just finished...Ch. 6 - Production Report, Weighted Average Manzer Inc....Ch. 6 - Nonuniform Inputs, Weighted Average Carter Inc....Ch. 6 - Transferred-In Cost Powers Inc. produces a protein...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Basic Cost Flows Hardy Company produces 18-ounce...Ch. 6 - Equivalent Units, No Beginning Work in Process...Ch. 6 - Unit Cost, Valuing Goods Transferred Out and EWIP...Ch. 6 - Weighted Average Method, Unit Cost, Valuing...Ch. 6 - Physical Flow Schedule Craig Inc. just finished...Ch. 6 - Production Report, Weighted Average Washburn Inc....Ch. 6 - Nonuniform Inputs, Weighted Average Ming Inc. had...Ch. 6 - Transferred-In Cost Vigor Inc. produces an energy...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Use the following information for Brief Exercises...Ch. 6 - Basic Cost Flows Linsenmeyer Company produces a...Ch. 6 - Journal Entries, Basic Cost Flows In December,...Ch. 6 - Equivalent Units, Unit Cost, Valuation of Goods...Ch. 6 - Weighted Average Method, Equivalent Units Goforth...Ch. 6 - Cassien Inc. manufactures products that pass...Ch. 6 - Weighted Average Method, Unit Costs, Valuing...Ch. 6 - Physical Flow Schedule The following information...Ch. 6 - Physical Flow Schedule Nelrok Company manufactures...Ch. 6 - Production Report, Weighted Average Mino Inc....Ch. 6 - Nonuniform Inputs, Equivalent Units Terry Linens...Ch. 6 - Unit Cost and Cost Assignment, Nonuniform Inputs...Ch. 6 - Nonuniform Inputs, Transferred-In Cost Drysdale...Ch. 6 - Transferred-In Cost Goldings finishing department...Ch. 6 - (Appendix 6A) First-In, First-Out Method;...Ch. 6 - (Appendix 6A) First-In, First-Out Method; Unit...Ch. 6 - Basic Flows, Equivalent Units Thayn Company...Ch. 6 - Steps in Preparing a Production Report Recently,...Ch. 6 - Recently, Stillwater Designs expanded its market...Ch. 6 - Equivalent Units, Unit Cost, Weighted Average...Ch. 6 - Production Report Refer to the information for...Ch. 6 - Mimasca Inc. manufactures various holiday masks....Ch. 6 - Use the following information for Problems 6-62...Ch. 6 - Use the following information for Problems 6-62...Ch. 6 - Weighted Average Method, Separate Materials Cost...Ch. 6 - Seacrest Company uses a process-costing system....Ch. 6 - Required: 1. Using the FIFO method, prepare the...Ch. 6 - Benson Pharmaceuticals uses a process-costing...Ch. 6 - (Appendix 6A) First-In, First-Out Method Refer to...Ch. 6 - Golding Manufacturing, a division of Farnsworth...Ch. 6 - AKL Foundry manufactures metal components for...Ch. 6 - Consider the following conversation between Gary...
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