Ch 16 Wiley Kimmel Homework Quiz

Sanchez Manufacturing purchases $45,000 of raw materials on account, and it incurs $50,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $30,000 of the factory labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5,  2.)

Date

Account/Description

Debit

Credit

Work in process-Assembly department (a) Mar. 31 24000 Work in process-Finishing department 21000

Raw materials inventory

45000

Work in process-Assembly department (b) Mar.31 30000 Work in process-Finishing department 20000

50000 Factory labor

Mora Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for materials and 40% completed for conversion costs. Mora uses the FIFO method to compute equivalent units. If unit material cost is $8 and unit conversion cost is $12, determine the cost to be assigned to units transferred out and the units in ending work in process. The total costs to be assigned are $664,000. Cost of units transferred out $ 600000 Cost of units in ending work in process Cost to be Assi Assign gned ed

$ 64000

Equivalent Unit Assi Assign gnme ment nt of Cost Costss Units Costs Transferred out Work in process 3/1

0

$0

Total Costs Assigned

$0

Star Starte ted d and and comp comple lete ted d

600,0 $600, 30,0 30,000 00 $20. $20.00 00 00 000

$664,000 Work in Process, 3/31 Materials

$40,0 00 24,00 64,00 2,000 $12.00 0 0

5,000

Conversion costs

$8.00

$664, 000

In Ramirez Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2010 are as follows.

Beginning Work in Process

Month

Units

Conversion Cost%

January March May July

-0-0-0-0-

-

Ending Work in Process Units Transferred Out Units 7,000 12,000 16,000 10,000

2,000 3,000 5,000 1,500

Conversion Cost% 60 30 80 40

Correct.

Compute the physical units for January and May. (If answer is zero, please enter 0, do not leave any fields

 blank.)

January

May

Units to be accounted for 0 Beginning work in process 0 9000 Started into production

21000 9000

Total units

21000

Units accounted for 7000 Transferred out 16000 2000 Ending work in process

5000 9000

Total units

21000

Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.

Materials

Conversion Costs

January 9000

8200

15000

12900

March

May 21000

20000

July

10600 11500

Materials

Conversion Costs

January

9,000 (7,000 + 2,000)

8,200 (7,000 + 1,200)

March

15,000 (12,000 + 3,000)

12,900 (12,000 + 900)

May

21,000 (16,000 + 5,000)

20,000 (16,000 + 4,000)

July

11,500 (10,000 + 1,500)

10,600 (10,000 + 600)

Pink Martini Company has gathered the following information. Units in beginning work in process

20,000

Units started into production

72,000

Units in ending work in process

24,000

Percent complete in ending work in process: Conversion costs Materials

60% 100%

Costs incurred: Direct materials

$101,200

Direct labor

$164,800

Overhead

$123,600

Correct.

Compute equivalent units of production for materials and for conversion costs. Materials 92000 Conversion costs 82400

Materials: 68,000 (1) + 24,000 = 92,000 Conversion costs: 68,000 + (24,000 × 60%) = 82,400 (1)

20,000 + 72,000 - 24,000

Determine the unit costs of production. (Round answers to 2 decimal places, e.g. 5.25.) Unit cost-Material c ost-Materialss $ 1.10 Unit cost-Conversion costs $ 3.50

Materials: $101,200 ÷ 92,000 = $1.10 Conversion costs: ($164,800 + $123,600) ÷ 82,400 = $3.50

Show the assignment of costs to units transferred out and in process. Units transferred out $ 312800 Units in ending work in process

$ 76800

Units transferred out: 68,000 × $4.60 = $312,800 Units in ending work in process: 24,000 × $1.10

$26,400

14,400 × $3.50

50,400

$76,800

Luther Processing Company uses a we ighted-average process costing system and manufactures a single product-a premium rug shampoo and cleaner. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the mixing and cooking department is shown below. Complete the production cost report. (Round the unit costs to 2 decimal places, e.g. 5.25.)

LUTHER PROCESSING COMPANY Mixing and Cooking Department Production Cost Report For the Month Ended October 31 Equivalent Units Quantities Units to be accounted for Work in process, October 1 (all materials, 70% conversion costs) Started into production Total units

Physical Units

20,000 160,000 180,000

Materials

Conversion Costs

Units accounted for Transferred out

130,000 130000

130000

50,000 50,000 30000 30000

20000 20000

180,000160000

150000

Work in process, October 31 (60% materials, 40% conversion costs)

Total units

Costs

Materials

Conversion Costs

Total

Unit costs $240,000

Costs in October

Equivalent units

Unit costs

$105,000

160000

150000

$ 1.5

$ .7

$345,000

$ 2.2

Cost to be accounted for Work in process, October 1

$30,000 315,000

Started into production

$345,000

Total costs

Cost Reconciliation Schedule Costs accounted for $ 286000 Transferred out Work in process, October 31 $ 45000 Materials

Conversion costs

14000

59000

$ 345000

Total costs

Computation of equivalent units:

Equivalent Units Phys Physiical cal Units its Units to be accounted for Transferred out Work in process, October 31 (60% materials, 40% conversion costs) Total units

Mate aterial rialss

Conv onversi ersio on Cost osts

130,000

130,000

130,000

50,000

30,000

20,000

180,000

160,000

150,000

Computation of October unit costs:

$1.50

Materials: $240,000 ÷ 160,000 equivalent units =

.70

Conversion costs: $105,000 ÷ 150,000 equivalent units =

$2.20

Total unit cost, October

Cost Reconciliation Schedule Costs accounted for

$286,000

Transferred out (130,000 × $2.20) Work in process, October 31 Materials (30,000 × $1.50) Conversion costs (20,000 × $0.70) Total costs

In a process cost system, total costs are determined at the end of a month or year. True

$45,000 14,000

59,000 $345,000

False

When finished goods are sold, the entry to record the cost of goods sold is a debit to Finished Goods Inventory and a credit to Cost of Goods Sold. False

True

A product requires processing in two departments, Department A and then Department B, before it is completed. Costs transferred out of Department A will be transferred to Work in Process—Department B.

Finished Goods Inventory.

Manufacturing Overhead.

Cost of Goods Sold.

A process with no beginning work in process, completed and transferred out 45,000 units during a period and had 30,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were 54,000 equivalent units.

22,500 equivalent units.

45,000 equivalent units.

75,000 equivalent units.

Cinder Company had the following department information for the month: Total materials costs Equivalent units of materials Total conversion costs Equivalent units of conversion costs How much is the total manufacturing cost per unit? $14.00

$6.67

$8.00

$6.00

$80,000 10,000 $120,000 20,000

Zibba Company enters materials at the beginning of the process. In January, there was no beginning work in process, but there were 100 units in the ending work in process inventory. The number of units completed equals the number of  units started plus 100.

equivalent units.

units started.

units started less 100.

If 80,000 units are transferred out of a department and there are 16,000 units still in process at the end of a period, the number of units that were started into production during the period is 80,000.

96,000.

64,000.

16,000.

 The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2010. All materials are added at the beginning of the process. Manufacturing Costs

Production Data

Beginning work in process

Beginning work in process Materials

1/10 complete

$18,000

Conversion costs

14,175

Materials

15,000 units

$32,175

Units transferred out

49,000

180,000

Units started

60,000

Labor

32,780

Ending work in process 26,000 units

Overhead

61,445

1/5 complete

Complete the production cost report for the Welding Department for the month of February. (Round unit costs to 2  decimal places, e.g. 3.25)

BATISTA MANUFACTURING COMPANY Welding Department Production Cost Report For the Month of February 28, 2010 Equivalent Units

Quantities Units to be accounted for Work in process, February 1 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units

Costs

Conver Physical Materia sion Units ls Costs

15,000 60,000 75,000

49,000 49,000 49,000 49,000 4 49,0 9,000 00 26,0 26 ,000 00 26 26,0 ,000 00 5, 5,20 200 0 75,000 75, 000 75, 75,000 000 54,2 54,200 00

Materia Conver ls sion

Total

Costs Unit costs

$198,0 00

(1)

Costs in February Equivalent units Unit costs

$108, 400

(2)

$306,400

75,000 54,200 $2.64

$2.00

Cost to be accounted for Work in process, February 1

$4.64

$32,175 274,225

Started into production

$306,400

Total costs

Cost Reconciliation Schedule Costs accounted for Transferred out (49,000 × $4.64) Work in process, February 28 Materials (26,000 × $2.64) Conversion costs (5,200 × $2.00) Total costs (1)

$18,000 + $180,000

(2)

$14,175 + $32,780 + $61,445

$227,360 $68,64 0 10,400

79,040 $306,400