Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
expand_more
expand_more
format_list_bulleted
Related questions
Question
Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are completed. After inspection, some units are spoiled due to undetectable material defects. Normal spoiled units generally constitute 4% of the good units. Data provided for February 2020 are as follows:
WIP, beginning inventory 2/1/2020 51,000 units
Direct materials (100% complete)
Conversion costs (60% complete)
Started during February 170,500 units
Completed and transferred out 180,100 units
WIP, ending inventory 2/28/2020 26,600 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $280,300
Conversion costs 80,900
Direct materials added 408,200
Conversion costs added 264,200
Write thejournal entry that correctly represents the transfer of finished goods during February to the inventory using the FIFO method of process costing . (Round any cost per unit calculations to the nearest cent.)
WIP, beginning inventory 2/1/2020 51,000 units
Direct materials (100% complete)
Conversion costs (60% complete)
Started during February 170,500 units
Completed and transferred out 180,100 units
WIP, ending inventory 2/28/2020 26,600 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $280,300
Conversion costs 80,900
Direct materials added 408,200
Conversion costs added 264,200
Write the
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 4 steps
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
- Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 5% of the good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 Direct materials (100% complete) Conversion costs (55% complete) 51,300 units Started during February Completed and transferred out 170,000 units 180,900 units WIP, ending inventory 2/28/2020 Direct materials (100% complete) Conversion costs (20% complete) 26,100 units Costs: WIP, beginning inventory: Direct materials $280,200 80,300 409,000 264,600 Conversion costs Direct materials added Conversion costs added What costs would be associated…arrow_forwardSamantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion c incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute good units. Data provided for February 2020 are as follows: WIP, beginning inventory 2/1/2020 Direct materials (100% complete) Conversion costs (50% complete) 51,300 units Started during February Completed and transferred out 170,700 units 180,700 units WIP, ending inventory 2/28/2020 Direct materials (100% complete) Conversion costs (30% complete) 26,500 units Costs: WIP, beginning inventory: Direct materials $280,000 Conversion costs 80,800 408,800 264,800 Direct materials added Conversion costs added What are the direct material and conversion…arrow_forwardEdwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use FIFO method. Data for May 2021 are as follows: WIP, beginning inventory 5/1/2021 24,200 units Direct materials (100% complete) Conversion costs (75% complete)Started during December 83,600 unitsCompleted and transferred out 5/31/2021 79,200 unitsWIP, ending inventory 5/31/2021 19,800 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials…arrow_forward
- Edwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use FIFOmethod. Data for May 2021 are as follows: WIP, beginning inventory 5/1/2021 24,200 units Direct materials (100% complete) Conversion costs (75% complete)Started during December 83,600 unitsCompleted and transferred out 5/31/2021 79,200 unitsWIP, ending inventory 5/31/2021 19,800 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials…arrow_forwardEdwards manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 60% converted. Normal spoilage, if any, generally constitute 4% of the good units - units that successfully passed the inspection in current month. Company use Weighted Average method. Data for May 2021 are as follows: WIP, beginning inventory 5/1/2021 24,200 units Direct materials (100% complete) Conversion costs (75% complete)Started during December 83,600 unitsCompleted and transferred out 5/31/2021 79,200 unitsWIP, ending inventory 5/31/2021 19,800 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials…arrow_forwardOutose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows: WIP, beginning inventory 12/1/2015 22,000 units Direct materials (100% complete) Conversion costs (75% complete) Started during December 76,000 units Completed and transferred out 12/31/2015 72,000 units WIP, ending inventory 12/31/2015 18,000 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct…arrow_forward
- Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows: WIP, beginning inventory 12/1/2015 22,000 units Direct materials (100% complete) Conversion costs (75% complete) Started during December 76,000 units Completed and transferred out 12/31/2015 72,000 units WIP, ending inventory 12/31/2015 18,000 units Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct…arrow_forwardHook Bait Incorporated processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2020 are provided below: Tons of King Salmon Percent Completed Materials Conversion Work-in-process inventory — June 1 1,600 92 81 Work-in-process inventory — June 30 2,900 62 41 Started processing during June 7,900 Total equivalent units for materials under the FIFO method are calculated to be: Multiple Choice 7,318 equivalent units. 6,926 equivalent units. 7,789 equivalent units. 7,080 equivalent units. 8,398 equivalent units.arrow_forwardHook Bait Incorporated processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2020 are provided below: Tons of King Salmon Percent Completed Materials Conversion Work-in-process inventory — June 1 2,700 98 86 Work-in-process inventory — June 30 4,000 66 47 Started processing during June 8,900 Total equivalent units for conversion under the weighted-average method are calculated to be:arrow_forward
- Outose Concept manufactures small tables in its Processing Department. Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non- detectible materials defects. Inspection occurs when units are 50% converted. Spoiled units generally constitute 4% of the good units. Data for December 2015 are as follows: 22,000 units WIP, beginning inventory 12/1/2015 Direct materials (100% complete) Conversion costs (75% complete) Started during December Completed and transferred out 12/31/2015 WIP, ending inventory 12/31/2015 Direct materials (100% complete) Conversion costs (65% complete) Costs for December: WIP, beginning Inventory: Direct materials 76,000 units Conversion costs Direct materials added Conversion costs added What is the number of total spoiled units? Select one: a. 8,000 units b. 2,880 units c. 5,120…arrow_forwardHook Bait Incorporated processes king salmon for various distributors. Two departments are involved processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2020 are provided below. Multiple Choice Work-in-process inventory - June 1 Work-in-process inventory - June 30 Started processing during June Total equivalent units for materials under the weighted-average method are calculated to be: 7,818 equivalent units. 9,043 equivalent units. 7.657 equivalent units. 9,743 equivalent units. Tons of King Salmon 2,600 3,900 8,900 10,096 equivalent units. Percent Completed Materials Conversion 97 76 64 37arrow_forwardHook Bait Incorporated processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2020 are provided below: Tons of King Salmon Percent Completed Materials Conversion Work-in-process inventory — June 1 3,400 85 87 Work-in-process inventory — June 30 4,700 60 37 Started processing during June 9,600 Total equivalent units for materials under the weighted-average method are calculated to be: Multiple Choice 10,496 equivalent units. 8,010 equivalent units. 11,120 equivalent units. 7,865 equivalent units. 10,039 equivalent units.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub