Quantity data: WIP, beg Stage of Completion Units placed in process Units transferred out WIP, end Stage of Completion Cost data: WIP, beg Factory costs: Materials Department M 5,000 1/5 30,000 ? 7,000 2/7 P750 17,400 8,990 3,480 Department P 8,000 3/4 30,000 ? 2/5 P9,481.44 7,920 3,960 2,640 Direct labor Factory overhead Required: Prepare the cost of production report for the two departments.

Quantity data: WIP, beg Stage of Completion Units placed in process Units transferred out WIP, end Stage of Completion Cost data: WIP, beg Factory costs: Materials Department M 5,000 1/5 30,000 ? 7,000 2/7 P750 17,400 8,990 3,480 Department P 8,000 3/4 30,000 ? 2/5 P9,481.44 7,920 3,960 2,640 Direct labor Factory overhead Required: Prepare the cost of production report for the two departments.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...

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Xe 6-15 Appendix Exercise: FIFO Equivalent Units; Unit Cost LOS 2. Calculate equivalent units for the following categories: transferred-in, materials, 3. Calculate unit costs for the following categories: transferred-in, materials, and and conversion. conversion. Calculate total unit cost. Halligan Company manufactures a product in four departments. Data for the firs department follow: Production: Units in process, July 1, 75% complete Units completed and transferred out Units in process, July 31, 25% complete Costs: Work in process, July 1 Costs added during the month Halligan uses FIFO costing. Required: 60,000 150,000 30,000 $193,500 $500,625 1. Prepare a physical flow analysis for the first department for July. 2. Calculate equivalent units of production for the first department for July. Calculate unit cost for materials, conversion, and in total for the first department for July. 3. 4. Calculate the cost of units transferred out and the cost of ending work in process. 5. Prepare…
(Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800 in increments of 100) and the total cost of moving materials at those levels of moves: Required: 1. Prepare a scattergraph based on these data. Use cost for the vertical axis and number of moves for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the total cost of moving materials and the number of moves? 2. Compute the cost formula for moving materials by using the high-low method. Calculate the predicted cost for a month with 550 moves by using the high-low formula. (Note: Round the answer for the variable rate to three decimal places and the answer for total fixed cost and total cost to the nearest dollar.) 3. CONCEPTUAL CONNECTION Compute the cost formula for moving materials using the method of least squares. (Note: For the method of least squares, round the variable rate to two decimal places and total fixed cost and total cost to the nearest dollar.) Using the regression cost formula, what is the predicted cost for a month with 550 moves? What does the coefficient of determination tell you about the cost formula computed by regression? 4. CONCEPTUAL CONNECTION Evaluate the cost formula using the least squares coefficients. Could it be improved? Try dropping the third data point (300, 3,400), and rerun the regression.
(Appendix 6A) First-In, First-Out Method; Equivalent Units Lawson Company produces a product where all manufacturing inputs are applied uniformly. Lawson produced the following physical flow schedule for March: Required: Prepare a schedule of equivalent units using the FIFO method.
Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a physical flow schedule. 2. Calculate equivalent units of production for direct materials and conversion costs. 3. Compute unit cost. Round to three decimal places. 4. Calculate the cost of goods transferred to Painting at the end of the month. Calculate the cost of ending inventory.
oad Assignment: Module 4 E x * CengageNoWv2 | Online teachin x cakeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionlocator=&inprogress-false eBook Show Me How Costs per Equivalent Unit The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Date Item Balance Debit Credit Debit Credit Mar. 1 Bal., 7,500 units, 2/5 completed 15,750 31 Direct materials, 135,000 units 243,000 258,750 31 Direct labor 69,670 328,420 31 Factory overhead 39,194 367,614 31 Goods finished, 136,800 units 355,530 12,084 31 Bal. ? units, 2/5 completed 12,084 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during March 4. Cost of units…
Exercise 4-12 (Algo) Equivalent Units; Assigning Costs; Cost Reconciliation—Weighted-Average Method [LO4-2, LO4-4, LO4-5] Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $743,862 in total. The ending work in process inventory in January consisted of 3,900 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows: Materials Labor Overhead Cost per equivalent unit $ 14.10 $ 4.10 $ 8.20 Required: 1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month. 2. Compute the cost of ending work in process inventory for materials, labor,…
PART 1: COMPLETING MISSING INFORMATION BONZZE Electronics manufactures two large-screen television models: the Foyale which sells for $1,800, and a new model, the Lajestic, which sells for $1,350. The production cost computed per unit under traditional costing for each model in 2021 was as follows. Traditional Costing Foyale Lajestic Direct materials Direct labor ($20 per hour) Mfg overhead ($38 per DLH) Total per unit cost $1,200 In 2021, BONZZE manufactured 26,000 units of the Foyale and 10,000 units of the Lajestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,500,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Foyale $600 or ($1,800 - $1,200), and Lajestic $570 or ($1,350 - $780). Because of this difference, management is considering phasing out the Foyale model and increasing the produc- tion of the Lajestic model. Cost Driver…
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Problem Compute for the equivalent units of production in each of the following cases: Case A In process, Sept. 1 Placed in process In process, Sept. 30 Case B Stage of completion Stage of completion In process, Oct 1 Case C Stage of completion Transferred to Dept Y In process, Oct. 31 Stage of completion In process, Nov. 1 Stage of completion Transferred to stockroom Placed in process In process, Nov. 30 Stage of completion Department 1 8,000 units 14 50,000 units 6,000 units 1/5 Department X 3,000 units 1/3 26,000 units 4,000 1/5 Department A ? 1/5 35,000 units 12,000 units 1/3 Department 2 5,000 units 1/10 12,000 units 1/6 Department Y 2,000 units 1/5 7,000 2/7 Department B 8,000 units 1/8 38,000 units 3,200 units 1/10
Exercise 6-6 EVEN APPLICATION – SUCCEEDING DEPT Astro2 Inc. uses two producing departments namely X and Y. In Dep’t Y, the second dept, costs are applied evenly throughout the process. Prepare the cost of production report of Dept Y using the following data for February of the current year: WIP, beg – 6,000 units, 1⁄4 done, P19,710 (50% of which was from department X, 20% for materials, 10% labor, 20% overhead) Received from Dep’t X – 35,000 units @ P3 Factory Costs : Materials, P20,770; Direct Labor, P8,375; FOH, P16,750 WIP, end – 8,000 units 1⁄4 done
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