Managerial accounting Quiz
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Quiz1312021.docxQuestion: 1
Required information
Problem 4-38 Operation Costing; Unit Cost; Cost Flow; Journal Entries (LO 4-7)
[The following information applies to the questions displayed below.] Orbital Industries of Canada, Inc., manufactures a variety of materials and equipment for the aerospace industry. A team of R&D engineers in the firm's Winnipeg plant has developed a new material that will be useful for a variety of purposes in orbiting satellites and spacecraft. Tradenamed Ceralam, the material combines some of the best properties of both ceramics and laminated plastics. Ceralam is already being used for a variety of housings in satellites produced in three different countries. Ceralam sheets are produced in an operation called rolling, in which the various materials are rolled together to form a multilayer laminate. Orbital Industries sells many of these Ceralam sheets just after the rolling operation to aerospace firms worldwide. However, Orbital also processes many of the Ceralam sheets further in the Winnipeg plant. After rolling, the sheets are sent to the molding operation, where they are formed into various shapes used to house a variety of instruments. After molding, the sheets are sent to the punching operation, where holes are punched in the molded sheets to accommodate protruding instruments, electrical conduits, and so forth. Some of the molded and punched sheets are then sold. The remaining units are sent to the dipping operation, in which the molded sheets are dipped in a special chemical mixture to give them a reflective surface. During the month of March, the following products were manufactured at the Winnipeg plant. The direct-material costs are also shown.
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Units |
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Direct Materials Used in Ceralam Sheets |
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Direct Materials Used in Dipping |
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Ceralam sheets (sold after the rolling operation) |
9,600 |
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$ |
3,264,000 |
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Nonreflective housings (sold after the punching operation) |
5,000 |
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1,700,000 |
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Reflective housings (sold after the dipping operation) |
2,100 |
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714,000 |
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52,500 |
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Total |
16,700 |
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$ |
5,678,000 |
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$ |
52,500 |
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The costs incurred in producing the various Ceralam products in the Winnipeg plant during March are shown in the following table. Manufacturing overhead is applied on the basis of direct-labor dollars at the rate of 150 percent.
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Rolling |
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Molding |
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Punching |
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Dipping |
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Direct material |
$ |
5,678,000 |
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$ |
–0– |
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$ |
–0– |
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$ |
52,500 |
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Direct labor |
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1,937,200 |
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426,000 |
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624,800 |
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126,000 |
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Manufacturing overhead |
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2,905,800 |
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639,000 |
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937,200 |
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189,000 |
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Total |
$ |
10,521,000 |
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$ |
1,065,000 |
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$ |
1,562,000 |
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$ |
367,500 |
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Orbital Industries of Canada uses operation costing for its Ceralam operations in the Winnipeg plant.
Problem 4-38 Part 1
Required:
1. Complete the following table showing information for each of the four operations.
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2. Complete the following table showing information for each product (i.e., rolled Ceralam sheets, nonreflective Ceralam housings, and reflective Ceralam housings).
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3. Prepare journal entries to record the flow of all manufacturing costs through the Winnipeg plant's Ceralam operations during March. (Ignore the journal entries to record sales revenue. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record raw material and conversion cost incurred by the Rolling department.
· Record cost of goods sold for units sold as reflective Ceralam housing.
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Question: 2
Problem 4-25 Step-by-Step Weighted-Average Process Costing (LO 4-3, 4-4, 4-5)
[The following information applies to the questions displayed below.] Timing Technology, Inc., manufactures timing devices. During 20x1, 2,800,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 450,000 units in work in process. These units were 46 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,204,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:
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Costs |
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Units |
Direct Material |
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Direct Labor |
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Work in process, January 1, 20x1 (83% complete as to conversion) |
440,000 |
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$ |
336,000 |
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$ |
328,400 |
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Units started in production |
2,810,000 |
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Direct-material costs |
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$ |
9,739,000 |
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Direct-labor costs |
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$ |
7,640,150 |
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Problem 4-25 Part 4
4-a. Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory. 4-b. Complete the following schedule as of December 31, 20x1, to compute the cost of finished-goods inventory.
Complete this question by entering your answers in the tabs below.
· Req 4A
· Req 4B
Complete the following schedule as of December 31, 20x1, to compute the cost of work-in-process inventory. (Round "Cost per equivalent unit" to 2 decimal places.)
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Complete this question by entering your answers in the tabs below.
· Req 4A
· Req 4B
Complete the following schedule as of December 31, 20x1, to compute the cost of finished-goods inventory. (Round "Cost per equivalent unit" to 2 decimal places.)
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Question: 3
Required information
Problem 4-28 Partial Production Report; Journal Entries; Weighted-Average Method (LO 4-2, 4-3, 4-4, 4-5)
[The following information applies to the questions displayed below.] Triangle Fastener Corporation accumulates costs for its single product using process costing. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process. A partially completed production report for the month of May follows.
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Production Report For the Month of May |
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Physical Units |
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Percentage of Completion with Respect to Conversion |
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Equivalent Units |
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Direct Material |
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Conversion |
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Work in process, May 1 |
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43,000 |
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45 |
% |
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Units started during May |
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64,000 |
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Total units to account for |
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107,000 |
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Units completed and transferred out during May |
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68,000 |
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68,000 |
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68,000 |
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Work in process, May 31 |
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39,000 |
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75 |
% |
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39,000 |
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29,250 |
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Total units accounted for |
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107,000 |
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Direct Material |
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Conversion |
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Total |
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Work in process, May 1 |
$ |
140,300 |
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$ |
587,100 |
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$ |
727,400 |
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Costs incurred during May |
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448,200 |
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4,255,950 |
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4,704,150 |
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Total costs to account for |
$ |
588,500 |
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$ |
4,843,050 |
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$ |
5,431,550 |
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Problem 4-28 Part 1
Required 1. Complete each of the following process-costing steps using the weighted-average method: a. Calculation of equivalent units. b. Computation of unit costs. c. Analysis of total costs.
Complete this question by entering your answers in the tabs below.
· Req 1A
Calculation of equivalent units.
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Complete this question by entering your answers in the tabs below.
Req 1B
Computation of unit costs. (Round "Costs per equivalent unit" to 2 decimal places.)
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Complete this question by entering your answers in the tabs below.
· Req 1C
Analysis of total costs. (Round "Costs per equivalent unit" to 2 decimal places.)
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Question: 4
Problem 4-33 Missing Data; Production Report; Weighted-Average (LO 4-4, 4-5, 4-6)
The following data pertain to the Hercules Tire and Rubber Company for the month of May.
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Work in process, May 1 (in units) |
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? |
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Units started during May |
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75,000 |
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Total units to account for |
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90,000 |
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Units completed and transferred out during May |
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? |
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Work in process, May 31 (in units) |
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10,000 |
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Total equivalent units: direct material |
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90,000 |
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Total equivalent units: conversion |
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? |
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Work in process, May 1: direct material |
$ |
140,000 |
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Work in process, May 1: conversion |
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? |
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Costs incurred during May: direct material |
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? |
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Costs incurred during May: conversion |
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831,000 |
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Work in process, May 1: total cost |
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180,000 |
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Total costs incurred during May |
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1,483,000 |
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Total costs to account for |
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1,663,000 |
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Cost per equivalent unit: direct material |
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8.80 |
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Cost per equivalent unit: conversion |
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? |
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Total cost per equivalent unit |
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18.81 |
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Cost of goods completed and transferred out during May |
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? |
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Cost remaining in ending work-in-process inventory: direct material |
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? |
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Cost remaining in ending work-in-process inventory: conversion |
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70,070 |
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Total cost of May 31 work-in-process |
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158,070 |
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Additional Information:
a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.
b. Hercules uses weighted-average process costing.
c. The May 1 work in process was 20 percent complete as to conversion.
d. The May 31 work in process was 70 percent complete as to conversion.
Required: Compute the missing amounts, and prepare the firm’s May production report.
Complete this question by entering your answers in the tabs below.
· Missing Values
· Equivalent Units
· Cost per EU
· Total Cost of End WIP
Calculate the missing values from the table given above. (Round "Cost per equivalent unit" to 2 decimal places.)
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· Missing Values
Complete this question by entering your answers in the tabs below.
· Missing Values
· Equivalent Units
· Cost per EU
· Total Cost of End WIP
Calculate the Equivalent Units.
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· Missing Values
Complete this question by entering your answers in the tabs below.
· Missing Values
· Equivalent Units
· Cost per EU
· Total Cost of End WIP
Calculate the Cost per EU. (Round "Cost per equivalent unit" to 2 decimal places.)
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· Equivalent Units
Complete this question by entering your answers in the tabs below.
· Missing Values
· Equivalent Units
· Cost per EU
· Total Cost of End WIP
Calculate the total cost of ending work-in-process. (Round "Cost per equivalent unit" to 2 decimal places.)
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· Cost per EU
