Exercise 8-52 (Static) Prepare a Production Cost Report: FIFO Method (LO 8-2, 4, 5, 6)Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing andRefining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuatessignificantly month to month based on market conditions. Information on costs and operations in the RefiningDepartment for September follow:WIP inventory-RefiningBeginning inventory(17,500 units, 10% complete with respect to Refiningcosts)Transferred-in costs (from Mixing)Refining conversion costsCurrent work (55,300 units started)Mixing costsRefining costs$ 237,0559,676$ 898,625103,140The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.Required:a. Complete the production cost report using the FIFO method.Note: Round "Cost per equivalent unit" to 2 decimal places.Flow of units:Units to be accounted for.Beginning WIP inventoryUnits started this periodTotal units to account forUnits accounted for:Completed and transferred outFrom beginning WIP inventoryMixingRefiningStarted and completed currentlyUnits in ending WIP inventoryMixingRefiningTotal units accounted forFlow of costs:Costs to be accounted for:Costs in beginning WIP inventoryCurrent period costsTotal costs to be accounted forCost per equivalent unitMixingRefiningCosts accounted for:Costs assigned to units transferred out:Costs from beginning WIP inventoryCurrent costs added to complete beginning WIPinventoryMixingRefiningCurrent costs of units started and completed:MixingRefiningTotal costs transferred outCost of ending WIP inventoryMixingRefiningTotal costs accounted forPhysicalUnitsTotalEquivalent UnitsMixing RefiningDepartment DepartmentMixing RefiningDepartment DepartmentAssessment Tool iFrame

It is the report that gives information about the total units produced and total cost incurred…

Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 237,055 9,676 $ 898,625 103,140 The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.

Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 237,055 9,676 $ 898,625 103,140 The ending inventory has 22,900 units, which are 90 percent complete with respect to Refining Department costs.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 27BEA: Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a...

See similar textbooks

Similar questions

Use the following information for Brief Exercises 4-34 and 4-35: Sanjay Company manufactures a product in a factory that has two producing departments, Assembly and Painting, and two support departments, S1 and S2. The activity driver for S1 is square footage, and the activity driver for S2 is number of machine hours. The following data pertain to Sanjay: Brief Exercises 4-34 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Sanjay Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Assembly and the other for Painting.) 2. Allocate the support department costs to the producing departments by using the direct method.
Weighted Average Method, Two-Department Analysis, Change inOutput Measure Healthway uses a process-costing system to compute the unit costs of the minerals that it pro-duces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for the minerals are measured, sifted, andblended together. The mix is transferred out in gallon containers. The Tableting Department takes the powdered mix and places it in capsules. One gallon of powdered mix converts to 1,600capsules. After the capsules are filled and polished, they are transferred to Bottling where they are placed in bottles, which are then affixed with a safety seal and a lid and labeled. Each bottlereceives 50 capsules. Required:1. Prepare a production report for the Mixing Department using the weighted average method.Follow the five steps outlined in the chapter. Round unit cost to three decimal places. 2. Prepare a production report for the…
Required information Heidelberg Fabrication manufactures two products, G-09 and G-35: Units produced Direct materials cost per unit Machine-hours per unit Production runs per quarter Machine depreciation Setup labor Materials handling Total Required: Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: G-09 19,900 $ 7 4 144 a. Overhead rate b. Machine depreciation b. Setup labor b. Materials handling G-35 3,980 $19 $ 107,460 53, 730 42,984 $ 204,174 a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter? Note: Round your answer to 2 decimal places. b. Heidelberg is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at…
FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories:   Physical units 10,000   8,000     Costs:     Transferred in —   $45,300       Direct materials $22,000   —       Conversion costs $13,800   $16,900   Current production:   Units started 25,000   ?     Units transferred out 30,000   35,000     Costs:     Transferred in —   ?       Direct materials…
FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories:   Physical units 10,000   8,000     Costs:     Transferred in —   $45,300       Direct materials $22,000   —       Conversion costs $13,800   $16,700   Current production:   Units started 25,000   ?     Units transferred out 30,000   35,000     Costs:     Transferred in —   ?       Direct materials…
FIFO Method, Two-Department Analysis Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories:   Physical units 10,000   8,000     Costs:     Transferred in —   $45,300       Direct materials $22,000   —       Conversion costs $13,800   $16,900   Current production:   Units started 25,000   ?     Units transferred out 30,000   35,000     Costs:     Transferred in —   ?       Direct materials…
For situations 1 trough 6, provide the following information: a. An estimate of the non-value-added cost caused by each activity b. The root caused of the activity cost (such as plant layout, process design, and product design) c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $10 2. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250. 3. A product currently requires eight moves. By redesigning the manufacturing layout, the number of…
Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool $ 171,100 45, 100 66, 123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 20,000 2,200 40 Product A Product B Product C Cost Driver Number of machine hours Number of design hours Number of batches Total Overhead Assigned Product B Product C 9,000 2,000 255 Estimated Cost Driver 59,000 5,500 465 30,000 1,300 170 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number.
For situations 1 trough 6, provide the following information:a. An estimate of the non-value-added cost caused by each activityb. The root caused of the activity cost (such as plant layout, process design, and product design)c. The appropriate cost reduction measure: activity elimination, activity reduction, activity sharing,or activity selection 1. It takes 1 hour and six pounds of material to produce a product using a traditional manufacturing process. A process reengineering study provided a new manufacturing process design (using existing technology) that would take 30 minutes and four pounds of material. The cost per labor hour is $12, and the cost per pound of material is $102. With its original design, a product requires 10 hours of setup time. Redesigning the product could replace the setup time to an absolute minimum of 30 minutes. The cost per hour of setup time is $250. 3. A product currently requires eight moves. By redesigning the manufacturing layout, the number of moves…
Required: Compute the amount of overhead cost applied to each product during the year. PROBLEM 4-17 Comprehensive Process Costing Problem - Weighted -Average Method (LO1, LO2, L03, L04, LO5) Techno Co. produces a special kind of tool that is widely used by construction. The tool is produced in two processes: bending and drilling. Raw materials are introduced at various points in the Bending Department; labor and overhead costs are incurred evenly through the bending operation. The bent output is then transferred to the Drilling Department. The following incomplete Work in Process account has been provided for the Bending Department for May: Work in Process - Bending Department May 1 inventory (12,000 units; materials 80% complete; labor and overhead 60% complete) May costs dded: Raw materials (270,000 units) Direct labor Overhead May 31 inventory (9,000; materials 90% complete; labor and overhead 60% complete) 45,369 394,210 638,144 493,584 Completed and transferred To drilling (2…
Exercise 8-6. BYPRODUCT COSTING AND ENTRIES Gee Company produces a product known as G-on. In the manufacture of this chemical, a byproduct results which can be sold as is for P25 per kilogram or be processed further and sold for P60 per kilogram. The additional processing for each kilogram of byproduct requires P10 for materials, P12 for labor and P11 for factory overhead. Production costs of the main product to the point of separation were: materials, P11,100,000; labor, P9,050,000; and factory overhead, P7,570,000. During the month, 170,000 kilograms of G-on and 26,000 kilograms of byproduct were produced. REQUIRED: Prepare journal entries for the byproduct when it is: Stored without assigning it any cost and later sold on account at P25 per kilogram, with no additional costs incurred Stored and with cost at P25 per kilogram, reducing the main product cost by the amount allocated to the byproduct Further processed and stored, with no cost prior to separation allocated to it…
Weighted Average Method, Journal Entries Muskoge Company uses a process-costing system. The company manufactures a product that is processed in two departments: Molding and Assembly. In the Molding Department, direct materials are added at the beginning of the process; in the Assembly Department, additional direct materials are added at the end of the process. In both departments, conversion costs are incurred uniformly throughout the process. As work is completed, it is transferred out. The following table summarizes the production activity and costs for February: Molding Assembly Beginning inventories: Physical units 10,000 8,000 Costs: Transferred in — $45,200 Direct materials $22,000 — Conversion costs $13,800 $20,450 Current production: Units started 25,000 ? Units transferred out 30,000 35,000 Costs: Transferred in — ? Direct…