KETT Ltd uses process costing for its main product, Fitez. You are provided with the following datafor its assembly division:Physicalunits (Fitez)DirectmaterialsConversioncostsBeginning work in process (October)100$1,000$400Started in October 20201,100Completed during October 20201,000Ending work in process (October 2020)200Costs added during October 2020$22,470$12,000Degree of completion of beginning work in process: direct material: 50%;conversion costs: 40%Degree of completion of ending work in process: direct material: 60%; conversioncosts: 20%KETT uses the First In First Out (FIFO) method of process costing for this division.Q17: The total equivalent units for conversion costs are:1,000 units1,070 units1,150 units1,200 units1.100 units

KETT Ltd Calculation of Equivalent Units - FIFO Method S.No Particulars Units Conversion…

Answered: KETT Ltd uses process costing for its…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4CMA: A company is using process costing with the first-in, first-out (FIFO) method, and all costs are...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the first processing department, the following equivalent units schedule has been prepared: The cost per equivalent unit for the period was as follows: The cost of beginning work in process was direct materials, 40,000; conversion costs, 30,000. Required: 1. Determine the cost of ending work in process and the cost of goods transferred out. 2. Prepare a physical flow schedule.
Plata Company has identified the following overhead activities, costs, and activity drivers for the coming year: Plata produces two models of microwave ovens with the following activity demands: The companys normal activity is 21,000 machine hours. Calculate the total overhead cost that would be assigned to Model X using an activity-based costing system: a. 230,000 b. 240,000 c. 280,000 d. 190,000
The assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Physical Units Data table Beginning work in process (May 1)ª Started in May 2020 Physical Units (Watches) 100 510 450 160 Print Completed during May 2020 Ending work in process (May 31)b Total costs added during May 2020 a Degree of completion: direct materials, 80%; conversion costs, 35%. Degree of completion: direct materials, 80%;…
K The assembly division of Walton Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units in first, then calculate the equivalent units. Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Physical Units Data table Physical Units (Watches) 60 485 455 90 Beginning work in process (May 1)ª Started in May 2020 Completed during May 2020 Ending work in process (May 31) Total costs added during May 2020 Dieguepletion: direct materials, 658anversion costs, 35%. Degperpletion: direct materials, 708anversion costs, 40%. Print Done…
The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Enter the physical units first, then calculate the equivalent units. Flow of Production Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for Equivalent units of work done to date Physical Units Data table Beginning work in process (May 1)ª Started in May 2020 Completed during May 2020 Ending work in process (May 31) Total costs added during May 2020 Physical Units Direct (Watches) Materials 100 $459,888 Print 510 450 160 $3,237,000 aDegree of completion: direct materials, 80%; conversion costs, 35%. bDegree of completion: direct materials, 80%; conversion costs, 40%.…
The assembly division of Fenton Watches, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work-in-process inventory. Begin by summarizing total costs to account for. Total costs to account for Total CH Production Costs Direct Materials Conversion Costs
Desjariais Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Coat Pools Setting up batches Assembling products Processing customer orders. Data concerning two products appear below: Number of batches Number of assembly hours. Number of customer orders a. Product S96U b. Product QO6F Overhead cost Activity Rate $ 123.70 per batch $ 7.32 per assembly hour $ 59.76 per customer order Product S960 36 192 23 Required: a. How much overhead cost would be assigned to Product S96U using the company's activity-based costing system? b. How much overhead cost would be assigned to Product Q06F using the company's activity-based costing system? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Product 006F 45 870 42
Kapoor Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost Pools Setting up batches Activity Rate $86.50 per batch Assembling products $4.63 per assembly hour Processing customer orders $52.16 per customer order + Data concerning two products appear below: + + P Number of batches 34 Number of assembly hours 105 Number of customer orders 17+ P ܒܝ Product J00A Product S06U 43P 812+ 32- Overhead Cost:< P Required: a. How much overhead cost would be assigned to Product J00A using the company's activity- based costing system? + b. How much overhead cost would be assigned to Product S06U using the company's activity-based costing system? There are some expenses incurred at the time of manufacturing of products and services that are not directly attributable to the finished products. These expenses are known as manufacturing overheads or indirect expenses.
Sayon Company employs FIFO process costing system concerning its only product which undergoes production in assembly department and finishing department. The following data for the year endec December 31, 2020 are provided: Assembly Department Units Cost January 1, 2020 100,000 units – 40% completed Cost of Direct material – P3M as to conversion cost Cost of Direct labor – P5M Cost of Factory Overhead – P2M 150,000 units – 80% completed as to conversion cost 400,000 units December 31, 2020 ? Units started DM cost added – P12M DL cost – P15M FOH cost – P13M Finishing Department Units Costs Cost of Transferred in - P10M January 1, 2020 50,000 units – 70% incomplete conversion cost DM cost – P6M DL cost – P1M FOH cost - P3М 30,000 units - 10% incomplete as ? to conversion cost December 31, 2020 Units started DM cost – P30M DL cost – P40M FOH cost – P10M Additional information: a. It is the company's policy to add conversion cost evenly throughout the period in the two departments. All…
Vanvalkenburg, Inc., manufactures and sells two products: Product Q5 and Product JO. The company has an actvity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product 05 Product J0 Total DLHS $191,748 70,536 295,592 3,000 300 4,300 2,800 5,800 Production orders Order size orders 500 800 MHs 4,500 8,800 $557,876 The activity rate for the Production Orders activity cost pool under activity-based costing is closest to: Multiple Cholce $63.40 per order S6874 per order S8817 per oroer 92 F AQI 61 pe here to search DELL 3.
Gourmet Master, Inc., uses activity-based costing to determine the cost of its stainless steel ovens. Activity-based product cost information is as follows: Activity Activity-BaseUsage (hrs. per unit) x Activity Rateper Hour = Activity Cost Fabrication 0.75 $24.00 $18.00 Assembly 1.50 20.00 30.00 Inspection 0.30 25.00 7.50 Moving 0.25 12.00 3.00 Total activity cost per unit $58.50 These activities only include the labor portion of the cost. Fabrication is the cutting and shaping of metal to be used in the assembly of the ovens. If the metal is not fabricated properly, additional time is required during final assembly to trim and adjust the metal pieces to fit properly. This has been a problem in Assembly. Management proposes improvements in Fabrication requiring the fabrication work to be done slower, but more accurately. As a result, the time in fabrication will increase to an hour per unit. However, because of the additional care, the…

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