VICTORY COMPANY,FAST CO,TAMAR.CO

Student Name:

Class:

Problem 20-02A

Part 1 (a) and (b)

VICTORY COMPANY

Direct

Direct

Equivalent units of production

Materials

Labor

Units completed and transferred out

Units of ending goods in process

  Direct materials

  Direct labor

Total equivalent units of production

Part 2

Direct

Direct

Cost per equivalent unit of production

Materials

Labor

Costs of beginning goods in process

Costs incurred this period

Total costs

Divided by Equivalent units of production

Cost per equivalent unit of production

Part 3

Direct

Direct

Assigning product costs to units

Materials

Labor

Costs transferred out

  Direct materials

  Direct labor

  Total costs transferred out

Costs of ending goods in process

  Direct materials

  Direct labor

  Total costs of ending goods in process

Total costs accounted for

VICTORY COMPANY

For the month of November:

Number of units transferred to finished goods

     700,000

Number of units 30% complete as to labor at

  end of period

     180,000

Beginning inventory:

  Direct materials

$420,000

  Direct labor

$139,000

Direct materials cost for period

$2,220,000

Direct labor cost for period

$3,254,000

Check figure:

(2) Direct labor cost per equivalent unit

$4.50

(3b)

$783,000

Instructions:

Assume Victory uses the average-cost method to account for its process

costing system.

1.  Prepare the company's process cost summary using average cost.

2.  Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.

Student Name:

Class:

Problem 20-04A

FAST CO.

Process Cost Summary

For Month Ended October 31

Costs Charged to Production

Costs of beginning goods in process

  Direct materials

  Direct labor

  Factory overhead

Costs incurred this period

  Direct materials

  Direct labor

  Factory overhead

Total costs to account for

Unit cost information

Units to account for

  Beginning goods in process

  Units started this period

Total units to account for

Units accounted for

  Completed and transferred out

  Ending goods in process

Total units accounted for

Direct

Direct

Factory

Equivalent units of production

Materials

Labor

Overhead

Units completed and transferred out

Units of ending goods in process

  Direct materials

  Direct labor

  Factory overhead

Equivalent units of production

Direct

Direct

Factory

Cost per EUP

Materials

Labor

Overhead

Cost of beginning goods in process

Costs incurred this period

Total costs

  Divided by EUP

Cost per EUP

Cost assignment and reconciliation

Costs transferred out

  Direct materials

  Direct labor

  Factory overhead

Costs of ending goods in process

  Direct materials

  Direct labor

  Factory overhead

Total costs accounted for

FAST CO.

General Journal

Account

Debit

Credit

Finished Goods Inventory

  Goods in Process Inventory

FAST CO.

Goods in Process Inventory

Acct. No. 133

Date

Explanation

Debit

Credit

Balance

Oct 1

Balance

    335,930

31

Direct materials

  102,050

    437,980

31

Direct labor

  408,200

    846,180

31

Applied overhead

  244,920

 1,091,100

Beginning goods in process inventory:

  Direct materials

$59,450

  Direct labor

$172,800

  Factory overhead

$103,680

During October:

Units started

140,000

Units transferred to finished goods

150,000

End of October:

Units in goods in process inventory

20,000

Percent complete

80.00%

Check figure:

(1) Total cost transferred to finished goods

$982,500

Instructions:

Assume Fast uses the average-cost method to account for its process

costing system.

1.  Prepare the company's process cost summary using average cost.

2.  Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.

Problem 20-06A

Student Name:

Class:

TAMAR CO.

Process Cost Summary

For Month Ended May 31

Costs Charged to Production

Costs of beginning goods in process

  Direct materials

  Direct labor

  Factory overhead

Costs incurred this period

  Direct materials

  Direct labor

  Factory overhead

Total costs to account for

Unit cost information

Units to account for

  Beginning goods in process

  Units started this period

Total units to account for

Units accounted for

  Completed and transferred out

  Ending goods in process

Total units accounted for

Direct

Direct

Factory

Equivalent units of production

Materials

Labor

Overhead

Units to complete beginning goods in process

  Direct materials

  Direct labor

  Factory overhead

Units started and completed

Units of ending goods in process

  Direct materials

  Direct labor

  Factory overhead

Equivalent units of production

Direct

Direct

Factory

Cost per EUP

Materials

Labor

Overhead

Costs incurred this period

  Divided by equivalent units of production (EUP)

Cost per EUP

Carry to two decimal places (i.e., $52.50 or $52.00 or $52.04).

Cost assignment and reconciliation

Costs transferred out

Cost of beginning goods in process

Cost to complete beginning goods in process:

  Direct materials

  Direct labor

  Factory overhead

Cost of untis started and complted this period:

  Direct materials

  Direct labor

  Factory overhead

Total cost of goods finished this period

Costs of ending goods in process:

  Direct materials

  Direct labor

  Factory overhead

Total costs accounted for

TAMAR CO.

General Journal

Account

Debit

Credit

Finished Goods Inventory

  Goods in Process Inventory

Given Data P20-06A:

TAMAR CO.

Goods in Process Inventory

Acct. No. 133

Date

Explanation

Debit

Credit

Balance

Oct 1

Balance

       241,740

31

Direct materials

            496,800

       738,540

31

Direct labor

         1,203,300

    1,941,840

31

Applied overhead

            962,640

    2,904,480

Beginning goods in process inventory:  3,000 units 100% complete as to direct

materials and 40% complete as to direct labor and overhead.

  Direct materials

$19,800

  Direct labor

$123,300

  Factory overhead

$98,640

During October:  Of the 22,200 units completed, 3,000 were from beginning goods in

process.  The remaining 19,200 were units started and completed during May.

Ending goods in process inventory:  2,400 units 100% complete as to direct

materials and 80% complete as to direct labor and overhead.

Check figure:

Total cost transferred to finished goods

$2,667,840

Instructions:

Note:  Data is provided below the forms as

well as on the "Given P20-06A" sheet.

Assume Tamar uses the FIFO method to account for its process costing system.

1.  Prepare the company''s process cost summary using FIFO.

2.  Prepare the journal entry at the end of the period to transfer the cost of completed units to finished goods.

TAMAR CO.

Goods in Process Inventory

Acct. No. 133

Date

Explanation

Debit

Credit

Balance

Oct 1

Balance

          241,740

31

Direct materials

       496,800

          738,540

31

Direct labor

    1,203,300

       1,941,840

31

Applied overhead

       962,640

       2,904,480

Beginning goods in process inventory:  3,000 units 100% complete as to direct

materials and 40% complete as to direct labor and overhead.

  Direct materials

$19,800

  Direct labor

$123,300

  Factory overhead

$98,640

During October:  Of the 22,200 units completed, 3,000 were from beginning goods in

process.  The remaining 19,200 were units started and completed during May.

Ending goods in process inventory:  2,400 units 100% complete as to direct

materials and 80% complete as to direct labor and overhead.

Check figure:

Total cost transferred to finished goods

$2,667,840