Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Textbook Question
Chapter 8, Problem 14E
Journalizing
Griffin Manufacturing Inc. has two departments, Mixing and Blending. When goods are completed in Mixing, they are transferred to Blending and then to the finished goods storeroom. There was no beginning or ending work in process in either department. Listed below is information to be used in preparing
Prepare journal entries for the following:
- 1. The issuance of direct materials into production and the recording of the materials variances. (Prepare separate entries for each department.)
- 2. The use of direct labor in production and the recording of the labor variances. (Prepare separate entries for each department.)
- 3. The entries to record the actual and applied factory
overhead. - 4. The entries to transfer the production costs from Mixing to Blending and from Blending to Finished Goods.
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The controller at Bethune Chemicals asks for your help in sorting out some cost information. You receive the following sheet for the
most recent year:
Cost of goods manufactured
Cost of goods sold
Direct labor costs
Direct materials inventory, December 31
Direct materials purchased
Finished goods inventory, December 31
Prime costs for the year
Total manufacturing costs
Work-in-process inventory, January 11
Required:
Compute:
a. Direct materials used.
b. Direct materials inventory, January 1.
c. Conversion costs.
d. Work-in-process inventory, December 31.
e. Manufacturing overhead.
1. Finished goods inventory, January 1.
a. Direct materials used
b. Direct materials inventory
c. Conversion costs
d. Work-in-process inventory
e. Manufacturing overhead
f. Finished goods inventory
$ 906,000
727,400
184,000
52,000
263,200
236,400
466,600
914,400
26,200
Required information
[The following information applies to the questions displayed below.]
The first production department of Stone Incorporated reports the following for April.
Beginning work in process inventory
Units started this period
Completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
The production department had the cost Information below.
Required a.
Cost per equivalent unit of production: FIFO method
Costs added this period
- Equivalent units of production
Cost per equivalent unit of production (rounded to 2 decimals)
Required b
Cost assignment-FIFO
Beginning work in process
To complete beginning work in process
Direct materials
Conversion
Started and completed
Direct materials
Conversion
Units
80,000
422,000
Completed and transferred out
Ending work in process
Direct materials
Conversion.
400,000
102,000
Total costs…
Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the
company's first processing department for a recent month. Required: Using the FIFO method: a. Determine the
equivalent units of production for materials and conversion costs. b. Determine the cost per equivalent unit for
materials and conversion costs. c. Determine the cost of ending work in process inventory. d. Determine the cost of
units transferred out of the department during the month.
Work in process, beginning:
Units in process
Percent complete with respect to materials
Percent complete with respect to conversion
Costs in the beginning inventory:
Materials cost
Conversion cost
Units started into production during the month
Units completed and transferred out
Costs added to production during the month:
Daosta Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first
processing department for a recent…
Chapter 8 Solutions
Principles of Cost Accounting
Ch. 8 - How does a standard cost accounting system work,...Ch. 8 - What is the difference between the standard cost...Ch. 8 - Prob. 3QCh. 8 - What are the specific procedures on which a...Ch. 8 - How are standards for materials and labor costs...Ch. 8 - What is a variance?Ch. 8 - How do price and quantity variances relate to...Ch. 8 - How do rate and efficiency variances relate to...Ch. 8 - Prob. 9QCh. 8 - How does a materials purchase price variance...
Ch. 8 - Prob. 11QCh. 8 - Prob. 12QCh. 8 - When a company uses a standard cost system, are...Ch. 8 - What two factors must be considered when breaking...Ch. 8 - What might cause the following materials...Ch. 8 - What might cause the following labor variances?
An...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - When does a flexible-budget variance occur?
Ch. 8 - Why is it important to determine flexible-budget...Ch. 8 - Prob. 23QCh. 8 - What is the significance of a production-volume...Ch. 8 - If production is more or less than the standard...Ch. 8 - At the end of the current fiscal year, the trial...Ch. 8 - What variances from the four-variance method are...Ch. 8 - What is the primary difference between the...Ch. 8 - What are the four variances in the four-variance...Ch. 8 - In all of the exercises involving variances, use F...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Computing materials variances D-List Calendar Co....Ch. 8 - Computing labor variances LIFT Inc. manufactures...Ch. 8 - Standard cost summary; materials and labor cost...Ch. 8 - Computing labor variances Fill in the missing...Ch. 8 - Standard unit cost and journal entries The normal...Ch. 8 - Making journal entries Assume that during the...Ch. 8 - Using variance analysis and interpretation Last...Ch. 8 - Using variance analysis and interpretation Last...Ch. 8 - Journalizing standard costs in two departments...Ch. 8 - Calculating factory overhead The standard capacity...Ch. 8 - Determining Budgeted Overhead The overhead...Ch. 8 - Calculating factory overhead: two variances Munoz...Ch. 8 - Calculating factory overhead: two variances...Ch. 8 - The normal capacity of a manufacturing plant is...Ch. 8 - Calculating amount of factory overhead applied to...Ch. 8 - Georgia Gasket Co. budgets 8,000 direct labor...Ch. 8 - (Appendix) Calculating factory overhead: four...Ch. 8 - (Appendix) Calculating factory overhead: three...Ch. 8 - Materials and labor variances Branca Inspections...Ch. 8 - Materials and labor variances Fausto Fabricators...Ch. 8 - Zippy Inc. manufactures a fuel additive, Surge,...Ch. 8 - Calculation of materials and labor variances
Fritz...Ch. 8 - High-End Products Inc. uses a standard cost system...Ch. 8 - RDI Products Co. manufactures a variety of...Ch. 8 - The standard cost summary for the most popular...Ch. 8 - Carlo Lee Corp. has established the following...Ch. 8 - USD Inc. has established the following standard...Ch. 8 - Allocation of variances
Costa Brava Manufacturing...Ch. 8 - On May 1, Athens Inc. began the manufacture of a...Ch. 8 - The standard specifications for an electric motor...Ch. 8 - Cardiff Inc. manufactures men’s sport shirts for...Ch. 8 - Fargo Co. manufactures products in batches of 100...Ch. 8 - Prob. 15PCh. 8 - (Appendix) Overhead variances—four variance
Mobile...Ch. 8 - Shinto Corp. uses a standard cost system and...Ch. 8 - Kamen Manufacturing Co. estimates the following...Ch. 8 - Prob. 19PCh. 8 - Jillian Manufacturing Inc. manufactures a single...Ch. 8 - Cost and production data for Binghamton Beverages...
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- Making journal entries Assume that during the month of April the production report of Algonquin Adhesives Inc. in E8-10 revealed the following information: Make journal entries to charge materials (use the materials purchase price variance) and labor to Work in Process. (Remember to retrieve the standard costs from E8-10 before solving this exercise.)arrow_forwardPrepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. Assuming that direct materials are placed in process during production, use the weighted average method with the following data:arrow_forwardThe following information concerns production in the Finishing Department for May. The Finishing Department uses the weighted average method. a. Determine the number of units in work in process inventory at the end of the month. b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.arrow_forward
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