Q2. Kelley paint company uses the weighted-average method to account for costsof production. Kelley manufactures base paint in two separate departments -Mixing and Packaging. The following information is for the Mixing Department forthe month of March.• A total of 40,000 units were in beginning WIP Inventory. All werecompleted and transferred out during March.• A total of 70,000 units were started during March. Of the 70,000 unitsstarted, 20,000 units were completed and transferred out to the Packagingdepartment (100% complete with respect to direct materials, direct labour,and overhead), and 50,000 units were partially completed and remained inending WIP Inventory on March 31 (90% complete for direct materials, 70%complete for direct labour, and 30% complete for overhead, which is appliedbased on machine hours).. Costs in beginning WIP Inventory totaled $229.000 ($98,000 in directmaterials + $41.000 in direct labor + $90,000 in overhead).. Costs incurred during March totaled $165,000(= 70,000 in direct materials+35.000 in dina$2O + TOOSS+MML 60 FUGGGL Dace5SOHINREF3WHp/Mk5ER0eastwestcollege.brightspace.com/d2l/le/activities/edit/TGHFC Bank-sm Calgary Mail-Linda Baa-mi... C Our own research i... Queen's University... lindabaamintah-Ya...N NettionLessons=False&retumUrl=%2fd21... BProdigy Finance Homepage - Maste...Y 19px V+ vLato (Recom9Paragraph v B I U A Ev 聞くR [~Mixing du Packaging. The following information is for the viking Department forthe month of March.. A total of 40,000 units were in beginning WIP Inventory. All werecompleted and transferred out during March.. A total of 70,000 units were started during March. Of the 70,000 unitsstarted, 20,000 units were completed and transferred out to the Packagingdepartment (100% complete with respect to direct materials, direct labour,and overhead), and 50,000 units were partially completed and remained inending WIP Inventory on March 31 (90% complete for direct materials, 70%complete for direct labour, and 30% complete for overhead, which is appliedbased on machine hours).. Costs in beginning WIP Inventory totaled $229.000 ($98,000 in directmaterials + $41.000 in direct labor+ $90,000 in overhead).. Costs incurred during March totaled $165,000(= 70,000 in direct materials +35,000 in direct labor+ 60,000 in overhead).• Use the four key steps to assign costs to units completed and transferred out and to units in ending WIP inventory for the MixiDepartment.

Name: Q2. Kelley paint company uses the weighted-average method to account
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Description: Q2. Kelley paint company uses the weighted-average method to account for costsof production. Kelley manufactures base paint in two separate departments -Mixing and Packaging. The following information is for the Mixing Department forthe month of Mar

Process costing system: It is used to compute the cost per unit from the production at each stage.…

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- A total of 40,000 units were in beginning WIP Inventory. All were completed and transferred out during March.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ardt-Barger has a beginning work in process inventory of 5.500 units and transferred in 25,000 units before ending the month with 3.000 u flits that were 100% complete with regard to materials and 80% complete with regard to conversion costs. The cost per unit of material is $5.45, and the cost per unit for conversion is $6.20 per unit, Using the weighted-average method, prepare the companys process cost summary for the month.
Fresno Industries Inc. manufactures and sells high-quality camping tents. The company began operations on January 1 and operated at 100% of capacity (150,000 units) during the first month, creating an ending inventory of 20,000 units. During February, the company produced 130,000 units during the month but sold 150,000 units at 500 per unit. The February manufacturing costs and selling and administrative expenses were as follows: a. Prepare an income statement according to the absorption costing concept for the month ending February 28. b. Prepare an income statement according to the variable costing concept for for the month ending February 28. c. What is the reason for the difference in the amount of operating income reported in (a) and (b)?
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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
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Petrillo Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows: During the year, Petrillo had the following activity related to valve production: a. Production of valves totaled 20,600 units. b. A total of 135,400 pounds of direct materials was purchased at 5.36 per pound. c. There were 10,000 pounds of direct materials in beginning inventory (carried at 5.40 per pound). There was no ending inventory. d. The company used 36,500 direct labor hours at a total cost of 656,270. e. Actual fixed overhead totaled 110,000. f. Actual variable overhead totaled 168,000. Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year. Standard overhead rates are computed based on normal activity measured in standard direct labor hours. Required: 1. Compute the direct materials price and usage variances. 2. Compute the direct labor rate and efficiency variances. 3. Compute overhead variances using a two-variance analysis. 4. Compute overhead variances using a four-variance analysis. 5. Assume that the purchasing agent for the valve plant purchased a lower-quality direct material from a new supplier. Would you recommend that the company continue to use this cheaper direct material? If so, what standards would likely need revision to reflect this decision? Assume that the end products quality is not significantly affected. 6. Prepare all possible journal entries (assuming a four-variance analysis of overhead variances).