Professional Documents
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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.)
21000
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.
Transferred out
Work in process 3/1 0 $0 $0
600,0 $600,
Started and completed 30,000 $20.00 00
000
$664,000
Work in Process, 3/31
$40,0
Materials 5,000 $8.00
00
24,00 64,00
Conversion costs 2,000 $12.00 0 0
$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 Ending
Work in Process Work in Process
Units
Conversion Transferred
Month Units Cost% Out Units Conversion Cost%
Correct.
Compute the physical units for January and May. (If answer is zero, please enter 0, do not leave any fields
blank.)
January May
0
Beginning work in process
0
9000
Started into production
21000
9000
9000
Compute the equivalent units of production for (1) materials and (2) conversion costs for each month.
January
9000 8200
March
15000 12900
May
21000 20000
July 10600
11500
Materials 100%
Costs incurred:
Overhead $123,600
Correct.
Compute equivalent units of production for materials and for conversion costs.
Materials
92000
Conversion costs
82400
Determine the unit costs of production. (Round answers to 2 decimal places, e.g. 5.25.)
Unit cost-Materials
$ 1.10
$76,800
Luther Processing Company uses a weighted-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.)
Equivalent Units
Unit costs
$240,000 $105,000 $345,000
Costs in October
Cost Reconciliation
Schedule
Work in process,
October 31
$ 45000
Materials
Equivalent Units
$2.20
Total unit cost, October
$345,000
Total costs
In a process cost system, total costs are determined at the end of a month or year.
True
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.
Manufacturing Overhead.
Cinder Company had the following department information for the month:
Total materials costs $80,000
Equivalent units of materials 10,000
Total conversion costs $120,000
Equivalent units of conversion costs 20,000
$6.67
$8.00
$6.00
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.
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.
1/10
Materials $18,000
complete
1/5
Overhead 61,445
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)
Welding Department
Equivalent
Units
Conver
Physical Materia sion
Quantities Units ls Costs
Unit costs
(1) $198,0 (2)$108,
$306,400
Costs in February 00 400
75,000 54,200
Equivalent units
$2.64 $2.00 $4.64
Unit costs