Calculations 1-14 revised

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Exercise 1 6-15 Completing a process cost summary L.O. C3 The following partially completed process cost summary describes the May production activities of Raman Company. lts production output is sent to its warehouse for shippinll.

Er;uiwlent units of production Units ttra,nsfened out Units cif r::nding goods in process

Equiwllernt units of production

Costs per EUP Costs ofllleginning goods in process Costs inin;uned this period

Total c01il;1;s $908,800

Units ir:r Jireginning goods in process 7,0A0 Units slti:rrl.ed this period 135,000 Units cr)rnpleted and transfened out 122,000 Units in r:lnding goods in process 20,000

Prepare ilr:; process cost summary using the weighted-arerage 'n,ethod. {ffi*u*"rd ysss" #ffis\tr*r{;; llc$ * d**$stt*$ p$mcex *maf m*msid*r the ss$T* I*"r tF ie *t*"ser *m$*u$at$*ns" *nsn&r#ils li:*' the rte*r*S **$$*r #r*']sqJ$'!t. #sx'*$t the o*$*n s*gffi irx ymu r respffiffis#.]

Direct Materials

1 22,000 20:000

--:::::: Direct

Materials $ 35,000

873,900

Direct F:tactory Labor ()'verhead

122,000 1,22,000

]orooo ]o':oo 132,000 1 ,32,000

Direct l:iactory Labor (lvrerhead

$ 1,600 {; 3,200 1041000 308,000

$105,600 {,211,200

*qls* g*wr ffi{-$F ffi,e***nd qlth**n

RAMAN COMPANY Process Cost Summary

For Month Ended May 31 to ProductionCosts Ch

,-t- L-- -E r .

ezts.mhecl oud. ntcg raw hi ll I .com/hm,tpx

Total cori;1l,s to account for

Units to account for Units s;tmfted this period +

nt tinnin,* qoods in orocess

Total unil,s to account for

E,quiralent Units of Production (EUP)

Units c;ornpleted and transfened out T

l u"itr ,;; ii

Equivaft,:nirl, units of production

Cost per EUP

lc"rts ;;i,"i

f c"qL-_iil,

Total cosrt$

lEqri*il1| Cost peir lEiiUP

i:lg,800

1)rl15r8oo

.,^.'.:."1.'?:::o:,

Unit co::,t information

135,00:|

7,00r.I

Units accounted for Compteted & transfened out z r Endina qoods in process i ''

1 22,000

20,000

Direct Materia s

Total units accounted for

Direct Labor Factory Orcrhead

Direct Material:rs

Factory Owrhead

Cost assignment and reconciliation

per EUP

Direct Labor

per EUP per EUP

1t11

uosts relnfi'Tereo oul Factory errre*r€?d f

Direct niaterials r

Direct latNrr !r

3lsl13 Assigrrrent PrintMew

Total trant'i'lbned out

Costs of endino ooods in orocess (Click to s,elect) ?

Direct rnaterials ?

Factorl' rll'v{grhead s

Total enrlinrg goods in process

Total costs; accounted for

Y$:nrffi. llllorkshr::r:r1l;

Fxercise :tti-f 5 Cornplefirig a prCIsess cssf s{Jrnff?ary r.o. c3

Exercise 't6-4 Recording overhead casts L.O. P3 Prepare joumal entries to record the following production acti\,ities.

l. Paid civerhead costs (otherthan indirect materials and indirect labor) of $23,000. {Omit the "$" sign in your rcsponse,)

General Joumal

trIII tF

General Journal

EPl:r

ti .;

Vierar-.flint #1

Worksh,Hret

Debit Credit 23,004

2. Used $58,000 of direct laborin production. Applied o\erhead at ti5% of direct laborcosts. {Omitthe "$" sign in your response,)

Debit

49,300

23,000

Credit

49,300

.+w{- 'i.-i' -

Exercise '16-11A Costs assigned to output-FlFO L.O. C4, P4 During l\pril, the production department of a process manuhcturing system completed a number of units of a produbt and transfened them to fnished goods. Of these tmnsfr;ned units, 59,000 were in process in the production department at the beginning of April and 310,000 werc started and completed in Apdl. Apdl's beginning inrcntory units were 7oo/o comdete with respect to mal:erials and 30Yo complete with respect to labor. At the end of Aptil, 87,000 additional units were in proces$ in the production department and rvere 600/o complete with respect to materials and 600/o complete with rerspect to labor.

The production department had $1,025,000 ofdirect materials an(l $672,000 of direct labor cost charged to it during April. Also, its beginning in\€ntory included $121,840 of direct materials cost and S49,890 of direct labor.

1. UsirigtheF|FOmethod,computethedirectmaterialscostandthedirectlaborcostperequiraalentunit fcr the department. {Round your ans!\rers to 2 decimal places, Omit the "$" dgn in your reqionse.)

Direct Materials Direct Labor Cost per equiralent unit $ EUP $ EUP

ezto.nfecloud.nrcg ravr hi ll.corn/hrntpx

2111

Y313 Assignnent PrintMarrr

2. Using the FIFO method, assign April's costs to the depall.ment's output--specifically, its units transfened to finished goods and its ending goods in process in\entory. {Round your intermediate calcuiations and final ansffer to 2 decimal places Omit th€ "$" sign in your risponse.)

Totarl cost $ t ',

V!E!-!r!!-dl

Hjorkshr-',rut .i;'.

Exercise 1l);134 Equiualent unr'ts computed-FlFO L.O. C4 The production department in a process manufacturing system cornpleted 196,500 units of product and frarrsfened them to finished goods during a rccent period. Of these units, 28,000 were in process at the beginning oF the period. The other 168,500 units were started and (iompleted during the period. At period end, 25,500 units were in process.

Compute the department's equi\alent units of production with respecl: to direct materials under each of the three separate assumptions using the FIFO method for process costing.

1. All dinslt materials are added to products when processing begins.

Total IEUP

2. Dircct traterials a€ added to poducts erenly throughout the process. Beginning goods in process invenkrry was 45% comdete, and ending goods in process inr,ent<rry was 65% complete.

Total EUP

3. One+alf of direct materials is added to prcducts r,vhen the procer;s begins and the other half is added lvhen lhe process is 70% complete as to direct labor. Beginning goods in prccess inventory is 30% comdel:e as to direct labor, and ending goods in process imentor) is 55% complete as to direct labor.

Total EUP

View Hi!!t!l

Workshepl:

5 . .:::- -*i..*-,...

Exercise 16-;5 Recarding cost of completed goods L.O" P4 Prepare joumal entries to record the follo,ving actiVties.

l- Transfened completed poducts with a cost of $140,000 to fnjshed goods inr€ntory. tOmit fhe "$" sign in your response.)

General Joumal Debit Credit @iffi 14o,ooo

@ 14o,ooo

2. Sold$449,000ofproductsoncredit.Theircostis$174,000.{Omiil:he"$"srigninyourresponse.}

General Joumal

@sr Erls

@![r"*'*'d -l.l

ezto,ft*1,ecloud. rncg ra\ F hi I I . r:: om/l'rm.tpx

Debit Credit 449,000

449,000

174,000

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Raw materiialsi purchases (on credit) Factory pay'rcltl cost (paid in cash)

Direct lndirect

Labor used Direct lndirect

Owrhead rartr:l as a percent of direct labor Sales (on creldit)

ezto. ntrrecl rud. ncg raw hi li I.corr/l'rm.tpx

Assig nrnent Print Mew

V_iew-lJiflL#1

Workshr**t Difficulty Mediun',

^^,,.ri-* ^^ h* ^r ^^^, nrnr^r ^^^-r_ l-earning Obj*ctire: 1 S-P4 Record the transfer gffxercise' i't3-5 Reecrct'ing cosf of conrplefect' goods *"*' ''.' ': L.0. p4 '

- - - "'- - -- -' r c*mpl*t*4 g**r3'; t"* Finished *osds lnventory and C**t *f G*ods Srlld"

Exercise 16-3 Recording costs of labar L.A. P2 Prepare jr:umal entries to recod the follovrting production actiVties.

1. lncunedtotal laborcostof$77,000,whichispaidincash.(Omitt:he"$"signinyourresponse.)

General Joumal Debit Credit Effi 77,ooo

77,000[-am 2. Used $62,000 of direct labor in prcduction. {Omit the "$" sign in 'your response.}

General Journal

ri4 Itis

3. Used lli'n,5,000 of indirect labor. {Smit tF"re **$o'si$n

ir"l yeiur resp*i'lse"}

General Joumal

EIrl l-.lrr-r:torypayroll j-l

View Figl..#1

Workgher*1[ ]ri:'.".':7-';i.;;:-7;:;;;t

C-.- .",otj ':':: 2 k#CrtrCinv#ssr+ zf ;fi-. *.i-r. P+ I :*';iiitii {thij5*' ' '' 1':"--": if o''-;rl fhe tl*rar 1f

rt|t^^

lab*, ur.JblF l. .''i . ::.2* ..:...,:...,;..:i:a.-.. -.:]"

Problem 16-1 A Production cost flow and measurement: journal enliies L.A. Pl , P2, P3, P4 [fhe foilowing Inform ation ap plies to ffi e guestrbns disp layed b elow]

Edison Company manufacturcs wool blankets and accounts for produc: costs using process costing. The following infomation is available regarding its May inventories.

Beginning . Ending

lnr,entory lnlentory Raw materials inventory $ 57,000 $ 49,000 Goods in pnocess inrentory 425,000 548,500 Finished gocds inwntory 636,000 333,001

The following additional information describes the company's production i:rctivities for May.

'174,O4A

Debit Credit 62,000

62,000

Debit Credit 15,000

1 5,000

Other orrerhrerad cost (Other Accounts credited) 99,000 Materials usied

$ 300,000 1,600,000

$ 195,500 70,000

$ 707,000 893,000

12OYo

$ 3,000,000

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313113 Print Mew

Probtem t6-1A P ;;;;;;,*-;;; enfnes l"O. Pf, P2, F3, F4

$ection

tneasuremenf,' jo

Require the cost of pnrducts transferred ful.n production to

youfl !sp*nse.)

of products transfened

the cost of goods sold- {Omit the "gnn sign in your re rl

co# rl il

Prabtemriti il

ii 'l

&-t A Fart 1

{(a)

{ (b}

goods. {Omit the *'$" si$n

- 4irecl

{Smit the "$" sisn in your

goods soldof

Prablem I tA Fart 2 2(a) P l joumal entry dated May 31 to rccord the raw materials

re$ps

General Joumal

2(b) Prepa,re joumal respqnse.)

entry dated May 31 to record the direct materi usage. {Srnit the nn$"

Credit

i*"- -" '--"--

-..'.."': ..:..'....:

dgn in your

n ray ler

General Joumal Credit

,-."". --. -,.....-. -. - - -, .", .,.,,:

ir y*ur2(c) Prepqrp journal entry dated May 31 to record the indirect materfrp joumal .espdtftn.)

General Joumal ..-..,

ir,-.-..-..'

Debit

: -

": -__;

it the "$" sign in your response.)

Debit Credit i-*-':- *'***-l

..'" .

{Ornit tha "$" sign in your

irb journal entry dated May 31 to record the payroll costs. { lil

General Joumal

z(ej

'....... joumal entry dated May 31

s8.l

joumal entry dated May 3't

rr'rrill ll

Geneml Joumal

rccord the direct

to record the indireet

ezto.mf,recl qd.ncg rzur hi { ll.uonr/frrn.tpx

313113

General Joumal

F olerhead I

General Joumal

Factory owrhead l-

General Joumal

Finlshed goods inrentory i -

Assi g nnent Print View

Debit Credit

finishe ,C goods. {*rxtit t$rs u'$'o

x$gx'r im y*isn

Debit Credit

Factory payroll i-

2(g)PrepaLre joumal entry dated May 31 to record the other orerhei:rd costs. {Omit the "$" sign in your respc,n$e.)

[]taLte

Mi;rr1 31

Detil,e

Malr 31

Dial.r:l

Mar'y |ll

Other accounts i .

2(h)Prepare joumal entry dated May 31 to record the orerhead;:rpplied. {omit the "$" sign in your response.)

Date General Joumal Debit Credit Mary',31 Goods in process inrentory i -

Factory o\,erhead ; '.

2(i) Prepare joumal entry dated May 31 to record the goods transfu'red fiom production to finished goods. (Omlt the "$" sign in your response.)

Goods in process inrentorv iv

2(i) Prepiar,cr joumal entry dated May 31 to record the sale of respull"r**e.)

Dirle General Joumal tr13',1 1i3,1 Accounts r€cei\a:ble i-

Finished goods inrentorv i r

Pr*blem f $,i;i:,4 Part I Required: 1(a) Detenrniine the equiwlent units of production with respect to direct larbor.

ezto.mhecl oud.mcg ra\ F hi I L r::omlhm.tpx

Wcrks*r*,e,it {71/"tn-' ' "

Problem 16-24 Cost per equiuatent unit; cosfs assrgned fo produc,s L.A. C2, C3 [The folowing inform ation applies to the guestbns disp I ayed b e low.]

Fairfax Company uses weighted-a\'eEge process costing to account for its production costs. Direct labor is added er,enly throughout the process. Dircct materials are added at th,3 beginning of the process. During September, the company transfened 785,000 units of product to finisherd goods, At the end of September, the goods in process in\,entory consists of 179,000 units that are 50t/o complete with respect to labor. Beginning inu?ntory had $375,960 of direct materials and $65,588 of din;ct labor cost. The direct labor cost added in Seplember is $1,246,162, and the direct materials cost added ir; $2,5.16,040.

Section Breatk Prablern 16-24 Coe;l frer equivalent unit costs assigned fo prodilct:; i-.O. C2, C3

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313113 nrnent Print Mers

materials.{(b) the equiwlent units of production with respect to d

both the direct labor cost and the direct materials to 2 decimal place- Omit the *$* s$gn in your re

Per equiulent unit

$; i ]x,s"4+-r#rF,@aF.,--*'.--."*",

: : . :' . . -.: : : : .:.,,.$,,i,,=tr,,,,,,,,,t,t,-::::::::=::j, :: :

Par{ 3 both direct labor cost and direct materials cost assig

und your per unit co* to I decimal places and l

Cost transfened out

aterials $i """ "^**--*:

|p,".,*"**'.*,'*.'.-'.,*-*'.**;

abor $i i ::::.:,:,...i..-:r.-.:::...::..., ..: -...:,,:.::'.-:::::-.::::l:i:-:.i:.-!!,1.':11t..-.'-::

both direct labor cost and direct materials cost {Round yoilr per unit cas*s ttr I decimal pla ount,)

per equiralent unit. {Rcund your .)

to units completed and transfened I ansuvers ts the neares dollar

to ending goods in process nd firtal ansfi.ersi to the nearest

jti'Ar-oe^

L; 1".'.* i-. a t ;tg ? $ Us rI f II At y ai-, { . ii:: f* }; ;;:- !+Lt lrtran-' v .

2A Part 2

out. amo

rt. .::.-t...::..

3(b) Corn

doll

ProSIem Easton start of

Proeess

ezto.nfrecl otd.mcg r aN-

Costs of ending go4_g_"in_Prq9_-esg_

$i """""._____-:

: :'- l,L'''-'.=''r -':::-:':*:'i. ,

--rrd lnnlnllfil us€ iil process

Process sosf surnmary; eg$ir/Elenf unrfs l"O. C?, its product through a single processing Dircct materials are added at the

, and direct labor and orrertread are added er,enly the process. The company reporting periods for its nreighted-a\Erage process accounting system. lts Goods in

account bllours afi,er entries for dlrect materials, labor, and onerfiead co'sts br

7tll

313113

October,

Goods in Process lnrentory Date Explanation

Oct. '1 Balance 31 Direct materials 31 Direct labor 31 Applied owrhead

Assig nnent Print View

Acct, 1,,,lo.133 Ba lance

276,296

379,296

802,286 1 051 ,296

Unit cr:st information

Direct lVraterials

EUP

' ,-.".|1.,:

Dire 'c1:

Materials

EUP

per EUP

Debit Credit

103,000

423,000 249,A00

Its beginnjng goods in process consisted of $43,030 of direct nraterials, $79,920 of direct labor, and $153,336 of factory overhead. During October, the company started 144,000 units and transfened 151,000 units to finished goods. At the end of the month, the goods in procr:ss iruentory consisted of20,800 units that were 80% complete with respect to direct labor and hctory o\eri€ad.

Required: 1' Prepare the companys process cost summary for October using the weighted-alerage method. {Round

your {iost per EUP anslvers to 3 decimal places and c:onsider the same in the other calculations. Round other ans,rrers to the nearest dollar iilnount Omit the "$" dgn in your reryonse.)

EASTON CO. Process Cost Summary

For Month Ended October 31 Costs;

Costsi Oharged to Production

l:eginning goods in processTotal Costs

Total inauned this period

Totail r::;rlsts to account for

Units to account for Units r;tarted this period ?

TBeginniing goods in process

Total unrits to account for

Equiwlent units of production

Units r:ompleted & transfered out tr

Unitli r:f ending goods in process T

Equirreril,ent units of production

Cost per EUP

Cost r:if beginning goods in process f v

Costs incuned this period i -

Total c;osts

Equi'unlent units of production t?

Cost per EUP

Cost assignment and reconciliation

Units accounted for Ending goods in process ,

t{ fCompleted & transferred out

Total units accounted for

Factory OwrheadDirect Labor

EUP

Direct Labor

EUP

Factory Owrhead

EUP

per EUP $

EUP

per EUP

Costs; transfened out Direl:lt materials i

! : I

I I ]

T ffi !r tl rr

Fa,clliiyv o\erhead

Direrrc,t[ labor

Total triarnsfered out Costs; r:,f ending goods in process

ezto.mhecl oud. rncg raw hi ll l, rtomftrm.tpx 8t11

lllileet materials T

lltlrect labor I

Fiactory olerhead T

313113 Assignnent Print Mew

Total ,ending goods in process

Tot,illl r:osts to account for

2- Preparc the joumal entry dated October 31 to transfer the cost of the completed units to fnished goods in\enlffy. {Omit the "$" sign in your response,}

Di'rl e,

Oct, $1

Debit CreditGeneral Joumal Finistred goods inwntory i-

Goods in process inlentory f r

Wnrksher:lt , -..., ;-'

I "'.-" .-.', Prcb feni' '! t:'4{ Pracess casf sum ?n ary; eguiyafenf ^

. , :^, unr'fs j-.C). rl::?. *3, F4

- -j ,

Problem 16-54 Process cost sumrnary, equiualent units, cosf esfr?r?ates L.O. C2, C3, P4 [The tDflowing information applies to fhe guesfibns displayed balowJ

Ogden Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and olerhead are added e\,enly throughout the process. The company uses monthly reporting periods for its weighterla\€rage plocess cost accounting. During Oct,olcer, the company completed and transfened 23,200 units of product to finished goods inrentory. fts 4, 100 units of beginning goods in process consisted of $i10,0O0 ol direct materials, $205,300 of direct labor, and $98,840 of factory o\erhead. lt has 2,200 units (10t)o/o complete with respect to direct materials anrl 80% complete with respect to direct labor and owrhe.:rd) in process at month-end. After entries to record direct materials, direct labor, and olerhead for October; the company's Goods in Process lnentory account fullows.

Goods in Process ln\,entory Acct. Nc.133 Date Explanation Debit Credit Balanr:e

Oct. 1 Balance 32"1.,140 31 Direct materials 495,900 820,040 31 Direct labor 1,288,300 2,1011,340 31 Applied or,erhead 982,440 3,090,780

Section Bre;aik.

units.coste$trf/.atesL.a.c2,cG,p4 ,::,'".';'.: '4:::: :; 'eirrrt - 'e''^::'-'.;'s"'-'

;;;J:-t.:lld. ':":''"" "-:;''-'lartd

13. '-1

Prablem 16-5.4 Part 1 l. Prepare the company's process cost summary for October using lhe weightedarerage method.{Round

your cost per EUP ans,yers to 2 decimal places and r::cnsider the same in the other calculi:rtions. Round other answers to the nearest dollar arnosnt Omit lhe "$" sign in your responsP.)

OGDEN CO. Process Cost Summary

For Month Ended October 31 Costs Charged to Production

(s rll'beoinninq ooods in Dirtmt materials T

Dittrr;t labor v

Factory owrhead T

Total lleginning goods in process

Costs incuned this period

ezto. rnhecl oud. nrcg raur hi I I . c;om/hm. tpx st11

313113 Assig nnent Print View

"?" _" _

Unit cost information

D'inect labor i- Fiarctory orrerhead i'? llriiitect materials i.r

Totarl incurred this period

Total costs to account for

Units to account for Beglinning goods in process i v Units; started this oeriod iT

Totarl units to account for

Equiwlent units of production

E,li @r; Equi'*alent units of production

rerg f'trr Total (]osts

Effi Cost plerr EUP

Cost assignment and reconciliation Costs; liransfened out

Farctory overhead T

Dinmt labor - DinN:;t materials v

Total r:nrding goods in process

Total ccmts to account for

Units accounted for

Completed & transfened out v

Endino qoods in process i v

Total units accounted for

Direct Materials

EUP

..""-:::"u:. .."-"

Direct Itlaterials

Direct Labor

EUP

":::. "" Direct Labor

Factory Overhead

EUP

_::::

Factory Owrhead

$ $

EUP

$ 0 per EUP

14.

Date

Oct. 3;1

ezto. nhecl oud. mcg raw hi I I .r::rrn/hm.tpx

Worksh*et

Pr*bl*m f S-l54 Part 1

Frob{em 16-:5,i., Part 2 2. Prepare 1ll're journal entry dated

inrentorlr {$mlt the *'$** sign in

October 31 to transfer the cost of completed units to finished goods y*ur resp*ns*.)

General Journal Debit Credit

Total trernsfened out

Costs; r:f endin

10111