Sam LLC incurred the following costs in the month of October:

Sam LLC incurred the following costs in the month of October:
Material $55,000
Labor $46,000
Factory Overhead $23,000
There was no beginning inventory. Ending work in process
was 10,000 units at 50 percent complete. 15,000 units were
completed and transferred out.
Prepare a cost of production summary for the month, assuming
Sam uses the average cost method of process costing. (This
problem is worth 20 points.)

2.Consider the following cost of production summary for Carrigan
Products for May:
Carrigan Products
Cost of Production Summary
For the Month Ended May 31, 20—
Cost of work in process, beginning of month:
Materials $8,200
Labor 5,500
Factory overhead 2,000 $15,700
Cost of production for month:
Materials $24,000
Labor 17,600
Factory overhead 16,900 58,500
Total costs to be accounted for $74,200
Unit output for month:
Finished and transferred to finished goods 2,000
Equivalent units of work in process,
end of month (1,000 units, 80% completed) 800
Total equivalent production 2,800
Unit cost for month:
Materials [($8,200 + $24,000) ÷ 2,800] $11.50
Labor [($5,500 + $17,600) ÷ 2,800] 8.25
Factory overhead [($2,000 + $16,900) ÷ 2,800] 6.75
Total $26.50
Inventory costs:
Cost of goods finished and transferred to
finished goods during month: (2,000 × $26.50) $53,000
Cost of work in process, end of month:
Materials (1,000 × .8 × $11.50) $9,200
Labor (1,000 × .8 × $8.25) 6,600
Factory overhead (1,000 × .8 × $6.75) 5,400 21,200
Total production costs accounted for $74,200
a. Prepare the journal entries to record the production activity.
b. Prepare the Statement of Cost of Goods Manufactured for
May

3.Howard Corporation has two production departments. Curing
has 12,000 units in process at the beginning of the period,
three-fourths complete. During the period, 45,000 units were
received from Crushing, 48,000 units were transferred to
Finished Goods, and 9,000 units were in process at the end of
the period, 2/3 complete. Cost information was as follows:
Cost of beginning work in process:
Cost in Crushing $21,640
Cost in Curing:
Materials 8,810
Labor 1,190
Factory overhead 2,420
Costs during the month:
Cost of goods received from Crushing $ 85,520
Cost in Curing:
Materials 53,830
Labor 10,690
Factory overhead 17,560
Total costs to be accounted for $201,660
a. Determine the unit cost for the month in Curing.
b. Determine the total cost of the products transferred to
finished goods.
c. Determine the total cost of the ending work in process
inventory.

4.Information for Chaucer, Ltd. in July for the Prep Department,
the first stage of the production cycle, is as follows:
Conversion
Materials Costs
Beginning work in process $8,100 $6,200
Costs added during July 23,400 13,400
Total costs $31,500 $19,600
Goods completed 60,000 units
Ending work in process 15,000 units
Material costs are added at the beginning of the process.
The ending work in process is two-thirds complete as to
conversion costs. How would the total costs accounted for be
distributed using the average cost method?

5.Howard Poster Incorporated had 12,000 units of work in
process in Department A on October 1. These units were 60
percent complete as to conversion costs. Materials are added
in the beginning of the process. During the month of October,
38,000 units were started, and 40,000 units were completed.
Howard had 10,000 units of work in process on October 31.
These units were 75 percent complete as to conversion costs.
a. Compute the equivalent units for materials and conversion
costs for the month of October using the FIFO method.
b. Using the average cost method, determine the equivalent
units for materials and conversion costs for the month of
October.

6.Jim Davis Company processes pork into three products—
chops, bacon, and sausage. Production and selling price data
follow:
Chops 100,000 lbs. $5.00/lb.
Bacon 210,000 lbs. $4.00/lb.
Sausage 410,000 lbs. $2.00/lb.
Pork is processed in the Processing Department. From the
split-off point, bacon is smoked, sliced, and packaged in the
Bacon Department. The cost incurred for these processes was
$100,000. In addition, sausage was ground and formed into
patties in the Sausage Department after the split-off. This
process cost $60,000.
a. If joint processing costs were $1,500,000, calculate the total
cost of each product using the adjusted sales value method.
b. Prepare the journal entries to (1) record the joint processing
and movement of product out of the Processing Department
after the split off, and (2) record the additional processing
and completion of the bacon and sausage.