Varios p3-6b - practica A6 PDF

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Do It! Review 16-1 Your answer is correct. Indicate whether each of the following statements is true or false. 1. Many hospitals use job order costing for small, routine medical procedures. False 2. A manufacturer of computer flash drives would use a job order cost system False 3. A process cost system uses multiple work in process accounts. True 4. A process cost system keeps track of costs on job cost sheets.

False

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Question 8 Your answer is correct. Mark Haley is uncertain about the steps used to prepare a production cost report. State the procedures that are required in the sequence in which they are performed. (1)

Compute the physical unit flow.

(2)

Compute equivalent units of production.

(3)

Compute unit production costs.

(4)

Prepare a cost reconciliation schedule.

!

Question 14 Your answer is correct. Hindi Co. started 3,000 units during the period. Its beginning inventory is 500 units one-fourth complete as to conversion costs and 100% complete as to materials costs. Its ending inventory is 300 units one-fifth complete as to conversion costs and 100% complete as to materials costs. How many units were transferred out this period? Units transferred out 3200

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Exercise 16-5 Your answer is correct. In Wayne 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 2014 are as follows. Beginning Work in Process Month

Units

Conversion Cost%

Ending Work in Process Units Transferred Out

Units

Conversion Cost%

January

0

—

9,000

2,000

60

March May

0 0

— —

12,000 16,000

3,000 7,000

30 80

July

0

—

10,000

1,500

40

(a) Compute the physical units for January and May. January Units to be accounted for Beginning work in process Started into production

May

11000

23000

Total units

11000

23000

Units accounted for Transferred out

9000

16000

Ending work in process Total units

2000

7000

11000

23000

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

January March

Materials Conversion Costs 11000 10200

May

15000 23000

12900 21600

July

11500

10600

!

Exercise 16-6 Your answer is correct. The Cutting Department of Cassel Company has the following production and cost data for July. Production

Costs

1.

Transferred out 12,000 units.

Beginning work in process

2.

Started 3,000 units that are 60%

Materials

45,000

$0

complete as to conversion

Labor

16,200

costs and 100% complete as

Manufacturing overhead

18,300

to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. (a) Determine the equivalent units of production for (1) materials and (2) conversion costs.

Total equivalent units of production

Materials Conversion Costs 15000 13800

(b) Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials

$3

Conversion costs $ 2.5 Prepare a cost reconciliation schedule. Cost Reconciliation Costs accounted for Transferred out

$ 66000

Work in process, July 31 Materials

$ 9000

Conversion costs

4500

Total costs

13500 $ 79500

!

Exercise 16-13 Your answer is correct. The Welding Department of Thorpe Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Manufacturing Costs

Production Data

Beginning work in process Materials Conversion costs

$18,000 14,175

Materials

Beginning work in process

15,000 units, 1/10 comp

Units transferred out

49,000

$32,175

Units started

45,000

180,000

Ending work in process

11,000 units, 1/5 comple

Labor

52,380

Overhead

61,445

Prepare a production cost report for the Welding Department for the month of February. (Round unit costs to 2 decimal places, e.g. 2.25 and all other answers to 0 decimal places, e.g. 1,225.) THORPE MANUFACTURING COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2014 Equivalent Units Physical Conversion Units Costs Quantities Materials Units to be accounted for Work in process, February 1 15000 Started into production

45000

Total units

60000

Units accounted for Transferred out

49000

49000

49000

11000

11000

2200

60000

60000

51200

Work in process, February 28 Total units Costs

Conversion

Unit costs Total Costs

Materials

Costs

$ 198000

$ 128000

60000

51200

$ 3.3

$ 2.5

Equivalent units Unit costs Costs to be accounted for Work in process, February 1

Total $ 326000 $ 5.8

$ 32,175 293825

Started into production Total costs

$ 326000

Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, February 28 Materials

$ 284200 $ 36300

Conversion costs

5500

Total costs

41800 $ 326000

!

Exercise 16-15 Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to September. 1. 2. 3. 4.

Applications in process on September 1, 100 Applications started in September, 900 Completed applications during September, 800 Applications still in process at September 30 were 100% complete as to materials (forms) and 60% complete as to conversion costs.

Beginning WIP: Direct materials

$1,000

Conversion costs

3,960

September costs: Direct materials

$4,500

Direct labor

12,000

Overhead

9,340

Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process. Your answer is correct. Determine the equivalent units of service (production) for materials and conversion costs.

The equivalent units of service (production)

Materials Conversion Costs 1000 920

Your answer is correct. Compute the unit cost. (Round unit costs to 2 decimal places, e.g. 2.25.)

Unit costs

Materials Conversion Costs $ 5.5 $ 27.50

Your answer is correct. Prepare a cost reconciliation schedule. Costs accounted for: Transferred out

$ 26400

Work in process, September 30 Materials

$ 1100

Conversion costs

3300

Total costs

4400 $ 30800

!

Exercise 16-3 The ledger of Custer Company has the following work in process account. Work in Process—Painting 5/1

Balance

3,590

5/31

Materials

5,160

5/31

Labor

2,740

5/31

Overhead

1,380

5/31

Balance

5/31 Transferred out

?

?

Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Your answer is correct. (a) How many units are in process at May 31? Work in process, May 31 300 units (b) What is the unit materials cost for May? (Round unit cost to 3 decimal places, e.g. 2.257.) The unit materials cost for May $ 4 (c) What is the unit conversion cost for May? (Round unit cost to 3 decimal places, e.g. 2.257.) The unit conversion cost for May $ 3.5 Your answer is correct. (a) What is the total cost of units transferred out in May? (Round answer to 0 decimal places, e.g. 1,225.) The total cost of units transferred out in May $ 11250

(b) What is the cost of the May 31 inventory? (Round answer to 0 decimal places, e.g. 1,225.) Work in process $ 1620

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Problem 16-2A Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2014 are presented below. Production Data Beginning work in process units

June 0

Units started into production

22,000

Ending work in process units

2,000

Percent complete—ending inventory

40 %

Cost Data Materials

$ 198,000

Labor

53,600

Overhead

112,800

Total

$ 364,400

Your answer is correct. Prepare a schedule showing physical units of production. Physical units Units to be accounted for Work in process, June 1 Started into production

0 22000

Total units

22000

Units accounted for Transferred out

20000

Work in process, June 30 Total units

2000 22000

Your answer is correct. Determine the equivalent units of production for materials and conversion costs.

Total equivalent units

Materials Conversion Costs 22000 20800

Your answer is correct. Compute the unit costs of production. (Round unit costs to 2 decimal places, e.g. 2.25.)

Unit Costs

Materials Conversion Costs Total Unit Cost $9 $8 $ 17

Your answer is correct. Determine the costs to be assigned to the units transferred and in process for June. Transferred out

$ 340000

Work in process, June 30

$ 24400

Your answer is correct. Prepare a production cost report for the Molding Department for the month of June. ROSENTHAL COMPANY Molding Department Production Cost Report For the Month Ended June 30, 2014 Equivalent Units Physical Conversion Quantities Materials Units Costs Units to be accounted for Work in process, June 1 Started into production 22000 Total units

22000

Units accounted for Transferred out

20000

20000

20000

2000

2000

800

22000

22000

20800

Materials

Conversion Costs

Work in process, June 30 Total units

Costs Unit costs Total Costs Equivalent units Unit costs

$ 198000

$ 166400 $ 364400

22000

20800

$ 9

$ 8

Costs to be accounted for Work in process, June 1 Started into production

Conversion costs Total costs

$ 17

$ 364400

Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, June 30 Materials

Total

$ 364400

$ 340000 $ 18000 6400

24400 $ 364400

!

Problem 16-3A Seagren Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production an cost data for the first process in making two products in two different manufacturing plants are as

follows. Cutting Department Plant 1 T12-Tables

Production Data—July Work in process units, July 1 Units started into production Work in process units, July 31

Plant 2 C10 -Chairs

0 19,000

0 16,000

3,000

500

60

80

Work in process percent complete Cost Data—July Work in process, July 1

$0

$0

Materials

380,000

288,000

Labor

234,200

110,000

Overhead

104,000

96,700

Total

$718,200

$494,700

Your answer is correct. For each plant: (1) Compute the physical units of production.

Units to be accounted for

T12 Tables C10 Chairs 19000 16000

(2) Compute equivalent units of production for materials and for conversion costs.

T12 Tables

Materials Conversion Costs 19000 17800

C10 Chairs

16000

15900

(3) Determine the unit costs of production. (Round unit costs to 0 decimal places, e.g. 25.)

Unit costs-T12 Tables

Materials Conversion Costs Total Costs $ 20 $ 19 $ 39

Unit costs-C10 Chairs

$ 18

$ 13

$ 31

(4) Show the assignment of costs to units transferred out and in process. T12 Tables Costs accounted for: Transferred out

$ 624000

Work in process Materials

$ 60000

Conversion costs

34200

Total costs C10 Chairs

94200 $ 718200

Costs accounted for: Transferred out

$ 480500

Work in process Materials Conversion costs

$ 9000 5200

Total costs

14200 $ 494700

Your answer is correct. Prepare the production cost report for Plant 1 for July 2014. SEAGREN INDUSTRIES INC. Cutting Department—Plant 1 Production Cost Report For the Month Ended July 31, 2014 Equivalent Units Physical Conversion Units Costs Materials Quantities Units to be accounted for Work in process, July 1 Started into production 19000 Total units

19000

Units accounted for Transferred out

16000

16000

16000

3000

3000

1800

19000

19000

17800

Materials

Conversion Costs

$ 380000

$ 338200

19000

17800

$ 20

$ 19

Work in process, July 31 Total units

Costs Unit costs Total Costs Equivalent units Unit costs Costs to be accounted for Work in process, July 1 Started into production

Conversion costs Total costs

!

Problem 16-5A

$ 718200 $ 39

$ 718200

Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials

Total

$ 718200

$ 624000 $ 60000 34200

94200 $ 718200

Morse Company manufactures basketballs. Materials are added at the beginning of the production process and conversion costs are incurred uniformly. Production and cost data for the month of Jul 2014 are as follows.

Production Data—Basketballs Work in process units, July 1

Units 500

Units started into production

Percent Complete 60 %

1,250

Work in process units, July 31

600

40 %

Cost Data—Basketballs Work in process, July 1 Materials

$750

Conversion costs

600

$1,350

Direct materials

2,400

Direct labor

1,580

Manufacturing overhead

1,295

Your answer is correct. Calculate the following. (1) The equivalent units of production for materials and conversion costs.

Equivalent Units

Materials Conversion Costs 1750 1390

(2) The unit costs of production for materials and conversion costs. (Round unit costs to 3 decimal places, e.g. 2.257.)

Cost per unit

Materials Conversion Costs $ 1.8 $ 2.5

(3) The assignment of costs to units transferred out and in process at the end of the accounting period. (Round answers to 0 decimal places, e.g. 2,250.) Costs accounted for: Transferred out

$ 4945

Work in process, July 31 Materials Conversion costs Total costs

$ 1080 600

1680 $ 6625

Your answer is correct. Prepare a production cost report for the month of July for the basketballs. (Round unit costs to 3 decimal places, e.g. 2.257 and all other answers to 0 decimal places, e.g. 2,250.)

Quantities

MORSE COMPANY Basketball Department Production Cost Report For the Month Ended July 31, 2014 Equivalent Units Physical Conversion Materials Units Costs

Units to be accounted for Work in process, July 1

500

Started into production

1250

Total units

1750

Units accounted for Transferred out

1150

Work in process, July 31 Total units

Costs Unit costs Costs in July Equivalent units

1150

600

600

240

1750

1750

1390

Materials $ 3150

Unit costs

1150

Conversion Costs

Total

$ 3475 $ 6625

1750

1390

$ 1.8

$ 2.5

Costs to be accounted for Work in process, July 1

$ 4.3

$ 1350

Started into production

5275 $ 6625

Total costs Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, July 31 Materials

$ 4945 $ 1080

Conversion costs

600

Total costs

1680 $ 6625

!

Problem 16-6A Hamilton Processing Company uses a weighted-average process cost 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. Your answer is correct. Prepare a schedule that shows how the equivalent units were compute...