Calculations 1-14

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2125113 Ass;ignnrent Print View

Exercise 1ti1 5 Completing a process cost sumftrary L-A. C3 The follot,ing partially completed process cost summary descdbes lhe May production actilities of Raman Company, lts production output is sent to its warehouse for shipping.

Ectuivalent units of production Units trirnsfened out Units of r::lnding goods in process

Equilalr:n1l units of production

Costs per EUP Costs of ikleginning goods in process Costs inr:;uned this period

Total ccsl.s

Direct Direct l:;actory Materials Labor C'rrerhead $ 35,000 $ 1,600 $ 3,200 8731:00 1?4i0?0 2081909

$908,800 $105,600 $ ztt,2oo

Direct F,actary Labor t.)rcrhead

122,000 'l?2,000 1o:ooo

19999

132,000 132,000

__" 1_ "

Unit corit information

Direct Materialr;

Direct Materials 122,000 20:000

142,0AA

Units in Jnr*ginning goods in process 7,000 Units si:arnlled this period 135,000 Units cr)rrlrpleted and transfened out '122,000 Units in emding goods in process 20,000

Prepare il$ process cost summary using the weighted-arerage rnethod. {ffi*l*n* ys$-r*" fr$Tsw*tr*i :f6 ff d***sr'*a$ p$**es nnd *qsrssid*r th* s&ffi"** is'x t*r'u *thsr **$s*^.r$atfr**s. anwpd#r$ iiqp the neares8 ***&*r as'*i*qJnt" #ret** *$r* n*$*n *$gr: *x'r y*r"xr ir#sp#ffiffi")

*qlsr* B*n ffi{.$F ffisl**d *t*r*r

RAMAN COMPANY Process Cost Summary

For Month Ended May 31 to ProductionCosts C;tir

6 -L-

t - - --E.--,,, -a , ,L

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Total costs to account for

Units to account for (Click tro select)

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Total units to account for

Er:lurir,alent Units of Production (EUP)

lcri'k {;;]

l (cti"k 1,.;',

Equiwkrn{ units of production

I ('i"k 1,;; ;

It-""sq'ia|

Total ccrgl'g

Icri"k r,;, ,i Cost per liiiUP

Units accounted for

{Click to select) T

(Click to sefect) ?

Total units accounted for

Direct Labor Factory Owrhead

Direct Materi:rls

Factory Owrhead

Cost assignment and reconciliation

per EUP

Direct Labor

per EUP per EUP

1t11

UOSTS tri:lnsleffe0 OUt (Click: to select) t

(Click to select) v

(C1ick lar select) ?

2t25t13 Asliignnent Print Viary

Total tranrsfened out Cos ts of endino qoods in orocess (Click ln,select) ?

(Click tar select) q

(Click tr::r select) I

Total errrling goods in process

Total crcrlits accounted for

Yieur-,r!rui ljllcrkshrarilt

Fx*rciser i'ri-?5 Co;"npfef*?$ a pflocess c*sf s{Jn?rrlary r.s. c3

Fxerc8e f li:'4 Recording overhead costs L.O. PS Prepare joumal entdes to record the following production acti\,ities.

1. Paidorerheadcosts(otherthanindirectmaterialsandindirectlal:ror)of$23,000.(Omitthe"$"signin your rc*;ponse.)

General Joumal Debit Credit

ffi 2. Used{i5B,000ofdirectlaborinproduction.AppliedorrerheadatSso/oofdirectlaborcosts.{Omitthe"$"

General Joumal Debit Oedit @ffi rffi

View H!ffi#1

Workshet*t: . .''' .. : Fxercise t'$--f Recarding ov*rh*ad costs 1.0- P3

Exercise 16-11A Casts assrgned to output-F|FO L.O. C4, P4 During April, the production department of a process manufucturing system completed a numberof units of a product and transfened them to fnished goods, Of these transferrecl units, 59,000 were in process in the production department at the beginning of April and 310,000 werc si:arted and completed in April. April's beginning inEntory units were 70Yo comflete with respect to materials and 30Yo complete with respect to labor. At the end of April, 87,000 additional units were in process in the prcduction department and were 600/o complete with respect to materials and 60% complete with rcsper;t to labor.

The production department had $1,025,000 ofdirect materials and $6i'2,000 of direct labor cost charged to it during April. Also, its beginning in\entory included $121,UO of direct materials cost and $49,890 of direct labor.

1 . Using the FIFO method, compute the direct matedals cost and th i! direct labor cost per equi\alent unit for the department. (Round your ansrLers to 2 decimal pl;rces Omit the '$" sign in your respon{re"}

Direct Materials Direct L,abor Cost p€,r equi\alent unit $ EUP $ EUP

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2125113

General Joumal

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Acrsignnent PrintVieu

2. Using the FIFO method, assign April's ccsts to the dep€rrtment's output-€pecifically, its units tmnslbned to fnished goods and its ending goods in prccess inr,entory. {Round your intermediate calculations and linal ansffer to 2 decimal places Omit thu "$" sign in your response.)

Total cost $

View Ftnt#1

lfforkshGet

Fxercfsr:r 16-i 1A Cosfs as$igfr?ed fo oi.rfpr.rf-FfF0 l.O. c4, p4

Exercr'se 1ti-13A Equiualent unrls computed-FFA L.O. C4 The proddction department in a process manufacturing system completed 196,500 units of product and transfener! them to finished goods during a Ecent period. Of thesr:r units, 28,000 were in process at the beginningl of the period- The other 168,500 units were started and completed during the period. At period end. 25,500 units were in process.

Compute the depailment's equi\ralent units of production with respe(;t to direct materials under each of the three separate assumptions using the FIFO method fur process costing.

l. All dircpt materials are added to products lvhen processing begin{i.

Total EUP

2. Dtnect rnaterials are added to products evenly throughout the process. Eeginning goods in process in\entoly was 45% comdete, and ending goods in process inr,entury was 65% complete.

Total EUP

3. One+alf of direct materials is added to products when the process begins and the other half is added when the process is 70% complete as to direct labor. Beginning goods in prccess inr,entory is 30% complete as to direct labor, and ending goods in process inrentorlr is 55% complete as to direct labor.

View l-{nt#1

. Exercise 16.1sAti:suivarentunitscomputed-FtFo hi:?:H,i:':S;jm*:".nm*f;t:;;Worksheet L'o' c4 FrFo.

Fxerclse 16-5 Recording cost of completed goods L.O" P4 Prepane joumal entries to rccord the fullowing activties.

l- Transfered completed producls with a cost of $140,000 to fnished goods inventory. {Omit the "$" sign in your response.)

General Joumal Debit Credit l(cti"*ffi @

2. Sold $449,000 ofproducts on credit. Theircost is $174,000. (Omitthe "$" sign in your response.)

Total HUP

Debit Credit

3t11

2J25113

Raw material's; purchases (on credit) Factory payr<rl,l cost (paid in cash) Other overhe,eld cost (Other Accounts credited) Materials usieol

Direct lndirect

Labor used Direct lndirect

Orerhead rater ins a percent of direct labor Sales (on cn:lrC,it)

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As,slg nrnent Print Vieut

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Fxercgse x 6-5 Recorct'rng cosf of conrplefeef goods ; L,A. P4

Exercise 1'6-3 Recording casts ol labor L.O. P2 Prepare joumal entries to record the following production actiVties.

1. lncuncd total labor cost of $Z/,000, which is paid in cash. {Omit the "$" sign in your response.}

Debit

msl, t.-

[(C;tick to select) i- |

2. Used $f:i2,000 of direct labor in production. {*mit th* **$" sign in your resp*nse"i

@sr ' [l'

3. Used lFl5,000 of indirect labor. {S*nit tlte on$" si$n in y*ur respnrrse.}

@il ld'

Raw materii'tls; inrentory Goods in proc'ess inwntory Finished gorr;ds inr,entory

Debit

Credit

Workshe eii

Exer*ise "1,{i-3 Recardi*g r*sfs *f fab*r L.0" Pz

Problem 16-1 A Production cost flow and neasurement; jaurnal enl'4es L.A. PI , P2, P3, P4 [me foilowing infomation appliesto fhe guesfibns displayed below.]

Edison Company manufactures urool blankets and accounts for product: costs using prccess costing. The following infornation is available regarding its May in\,entories.

Beginning Ending lnlentory lnventory $ 57,000 $ 49,000 425,000 il9,500 636,000 333,001

The following arcilditional information describes the company's production ilctivities for May.

$ 300,000 1,600,000

99,000

$ 195,500 70,000

$ 707,000 893,000

12lo/o

$ 3,000,00c

4111

2125t13

Problem 1,6-1A Part 1 Required: 1(a)Compute the cost of products transbned ftom pmduction to finished goods. (omit the "$" dgn in

your response,)

Cost ofproducts transfened $ 1(b) Compute the cost of goods sold. (Omit the "$'- sign in your nrsponse,)

Cos;t of goods sold $

Workshreirrt

Prablem I fi-f A Farl l

iliffrcu{g: i-{ard

Problem 16.14 Part 2 2(a) Prepare joumal.entry dated May 31 to record the raw materials purchases. (Omit the "$" sign in your

response.)

DatE General Joumal Debit Credit May 31rm

2(b)Prepare ioumal entry dated May 31 to record the direct matedal$ usage. {Omit the "$" dgn in your resp$niiie")

Datel

May il"l

Debit Credit

% 2(c)Prepare ianmal entry datd May 31 to recqd the indirect matetidtl ussge. (Offit &e '$" sign in yaur

respsilriil:l-l

Datr: Debit Credit May 31

ffi 2(d) Preparejoumal entry dated May 31 to record the payroll costs. {Onrit the "$" sign in your response.)

Datt'r General Joumal Debit Credit

General Joumal

(Click to select) l-

General Joumal

May 31

ffi 2(e)Prepare joumal entry dated May 31 to record the direct labor crrsts. {Omil the "$" sign in your

resp*n $*,, !

Date Debit Credit May 31

ffi 2(f) Prepare joumal entry dated May 31 to record the indirect labor crrsts. (Omit the "$" dgn in your

resPcnsie'')

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2t2AB Assignnent Print Vierry

l[late General Joumal Debit Credit t\/ery31 @

-Fl(Click to select) | Y

2(g)Preparc joumal entry dated May 31 to record the otherorerhr:ad costs. (Omit the "$" sign in your res4xlnse.)

Dtate General Joumal Debit Credit

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2(h)Prcpare joumal entry dated May 31 to recod the orerhead applied. (Omit the "$" sign in your r*$pfil'nss.)

[]'ate General Joumal Debit Credit May 31

W 2(i) Prepate.ioumal entry dated May 31 to rccod the goods transft:ned ftom production to finished goods.

{Omit the "$' sign in your response.)

I\{ilry 31

Dinte General Joumal M,a1r .J1

2(j) Prepaue joumal entry dated May 31 to record the sale of finish,:d goods. {Omit the "$" sign in your resprsrYl$s.1

Date Debit Credit May, 31

@ ----lI

General Joumal

Debit Credit

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Fr*b lem t fi:-1 A Part ? . -:,

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Problem 16-2,4 Cost per equivalent unrt; cosfs assrgned fo produc,tl L.O. C2, C3 [The following inform ation ap plies to fhe guestrbns disp layed b e low.]

Fairfax Company uses weighted-a\,erage process costing to account for its production costs. Direct labor is added elenly throughout the process. Dircct materials are added at th,:r beginning ofthe process. During September, the company transbned 785,000 units of product to finisheC goods. At the end d September, the goods in process in\,entory consists of 179,000 units that are 50(i5 complete with respect to labor. Begtnning antentory had $375,96O of direct matedals and $65,588 of direrlt labor cost. The direct labor cost added in September is $1,246,162, and the direct materials cost added iri' $2,516,949.

sectionBreak :::iffilifi":'"f ,:;:3i::3':""u'"'""

Prablem 16-.11,,4, Part I Required: 1(a) Determitrrir the equiwlent units of production with respect to direct liltnr.

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212913

both the direct labor cost and the direct materials to 2 decimal place. Omit the '$" sign in your re

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per equiwlent unit. {Round .l

{(b)

Prable

Problem 2-

Warks

-r$ij,

Prabfem 1 3(a) Com

out. am

start of USES

Process

tl l-lo Part 2

Aa-zn Part I I

I'1. I

-l,r i-tt

.1"bcmt ,f"!91"8,"d

aterials

your

Per equiulent unit

$ i* '*"**'-

q i=..-"--_..,.,___ :_" -"i

Part 2

11,

Part 3 both direct labor cost and direct materials cost ass nd your per unit costs to 2 decimal places and

to units cornpleted and tmnsfuned I anwrrers to the neares* dsllar

to ending goods in process

Cost transfened out

$l **-*i

materials decimal

cost I places final an$rers to the neares* dolla

I goods in pnrcess

Prabtem 1 Pa* 3

Prablem I Easton Co. ces its product thrwgh a single processing depart Direct rnaterials are added at the

, and direct labor and orcrhead are added erenly the process. The company rcporting periods for its weighted-a\€Ege process ng system. lts Goods in

account bllcnrs afrer entries for direct materials,

both direct labor cost and direct ti {Round ycur per unit cosfs ttr 2 *rountl I' I

j Costs of ending

process cosf sumffnry; egunralenf unrfs L.A. C2,

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labor, and owrfiead eosts fur

7111

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Debit Credit

103,000

423,000 249,AOO

rtssig nrnent Print View

Acr :t. No.133 llalance

276,296

379,286

802,286 1 ,051 ,296

Octoberr.

Goods in Process lnrcntory Dart e Explanation

Ocl:. 1 Balance 31 Direct materials :3'tr Direct labor :3'l Applied owrhead

Its beginning goods in process consisted of $43,030 of direct rnaterials, $79,920 ot direct labor, and $153,3,36 of fuctory or,erhead. During October, the company start,:d 144,000units and transfenEd 151,000 units tr)finished goods. At theend of the month, the goods in pn,:ess inrentory consisted of 20,800 units that were 80% complete with respect to direct labor and hctory ov:rrhead.

Required: l. Prepare the companyb process cost summary for October using the weighted-arerage method. {Round

you:r cosl per EUp an$,uers to 3 decimal places anl consider the same in the other calc.ulationg Round other an${rers to the nearesf dollat irmounl Omit the "$" sign in your req:ronse.)

EASTON CO. Process Cost Summary

For Month Ended October 31

Tc{:il [eginnirg goods ln process

tLilick to sdect)

Tokrl inrcuned this penod

Tota I r::r:sts to accor.rnt firr $

Unit c, rst inforrnation Units accounted for

(CIick to select)

{Gick to sdect)

- ?

Total units accountd forTotal units to acconnt for

Equiwlent units of production

@r-i @ili Equivalernt units of production

mrt @iir Total corlts

@I Cost pe,r EUP

Drect t/aterials Drect Labor Factory Owrhead EUP

EUP

EUP EUP EUP

Dire:;t Materials Direct Labor Factory Orcrhead

EUP

per EUP

EUP

per EUP

EUP

per EUP

Cost assignment and reconciliation Costs lri:lnsfered out

(Clic'k to select) lv k ?

iT !m itF

Clicl.,r to select

Clictl to select

Total trirnrsfened out Costs cil ending goods in process

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Cor;'tsi; Charged to Production

Units to account for

iGi;1,r, 'io sdect)

8111

(Cli,ck to select) rr

(Cliic,k to select) I

(Clrickr to select) v

2t25113 Assigtrnent PrintView

Prepare the joumal entry dated October 31 to transfer the cost of the comdeted units to finished goods in\,entoD/. {Omit the "$" dgn in your response.}

Date General Joumal Debit Credit oct.:31 @ --TJ]

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FraSlem 1€i-4A Prccess c+sls*m maty: eguirraienf unifs 1"6. t-)il, S3, F4

Problem ? 6-54 Process cast summary, equivalent unifg cosl esfl:xafes L.A. C2, C3, P4 phefollowing lnformation appliesto ffie quesf,bns displayed below.l

Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning ol the manufacturing process. Direct labor and or,erhealj are added evenly throughout the process. Thre company uses monthly reporting periods for its weight{d-a\erage prcrcess cost accounting. During Octobel the company completed and transfened 23,200 units of product to finished goods inrentory. ft{i 4,100 units of beginning goods in process consisted of 5i20,000 o{ direcl matedals, $205,300 of dit.ect labor, and $98,840 of factory or,erhead. lt has 2,200 units (1 00% complete with respect to direct materials and 800/o complete with respect to direct labor and owrhr:nd) in process at month-end. After entries to recod direct materials, direct labor, and o\ierhead for Octobrr, the company's Goods in Process ln\entory account follows.

Total reinrJing goods in process

Total corsts to account for

Goods in Process ln\entory Date Explanation

Oct. 1 Balance 31 Direct materials 31 Direct labor 31 I ApplieO owrhead

+-'u' rJl

Debit Credit

495,900 1,288,300

982,44A

Acct. ttlo.133 Balartce

3:14,140 8;10,040

2,108,340 3,0!)0,780

$ection friir4*'63

Pr*blerx I ti'-54 Pr***ss ctlst stltrtr:rl*{y, eqLJivzl*nt u*its, cast#,:;ti{rc6fes L.*. C2, C:i, P4

_U;:

^an f

13.

Problem t'6-SA Pad 1 1. Prepare the company's process cost summary for October using the weighted-arcrage method.{Round

your co$ per €UP an$,vers to 2 decimal places anrl eonsider the same in the other calcrulations, Round olher ans\n ers to the neare* dollal amount Qmit the "$" Sgn in your response.)

OGDEN CO. Process Cost Summary

For Month Ended October 31 Crcsts Charged to Production

Tiolhill beginning goods in process

C,o't;ts incuned this period

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(Click to select) ?

(Click to select) f

(Click to select)

2125t13

Totill incuned this period

Trrtall costs to account for

Units to account for (tlliuk to select) rr

(illick to select) !F

Tollilll units to account for

Equirclent units of produetion

(C:lick to select) f v

re[s

Equi'vialent units of production

Cost per EUP

(Clit;l'r to select) l-

ffi[ Toterl costs

{Clicl< to select) i-

Gos't p,er EUP

Cost assignment and reconciliation Costrs ll,nansfened out

(C:lick to select T F

x ?

Clilc,k to select

Clic:k to select)

Total transferred out Costs nf endinq qoods iSL::i ot enAlng 9OOOS ln PrOceS

(Cli,tk to select) I - (Clirll< to select) ?

(Ctir:l< to seleet) rr

rtssig nnrcrit Print View

Unill cost information

EUP

per EUP $

Units accounted for Click to select ?

n TClick to select)

Total units accounted for

Dre,:;t Materials Direct Labor EUP

EUP

per EUP $

Factory Owrhead

EUP

,:: EUP

EUP

per EUP

Total r:nding goods in process

Total crlrits to account for $

Warksheet

Prnblem f li."iiA Fart'l

Problem 16-5;A Pad 2 2. Prepare the joumal entry dated October 31 to transfur the cost ol'comdeted units to finished goods

in\entory, {Omit the "$" sign in your response,}

Date General Joumal Debit Credit Oct. 31

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