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Process Cost Accounting

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16-1 Robert Mallory has prepared the following list the statements about process cost accounting.;1-Process cost systems are used to apply cost to similar products that are mass-produced in a continuous fashion.;2-A process cost system is used when each finished unit is indistinguishable from another.;3-Company that produce soft drinks, motion picture, and chips would all use process cost in;4-In a process cost system, costs are tracked by individual jobs.;5-Job order costing and process costing track different manufacturing cost elements;6-Manufacturing overhead.;7-Cost flow through the accounts in the same basic way for both job order costing and process costing.;8-In a process cost system, only one work in process account is used.;9-In a process cost system, costs are summarized in a job cost sheet.;10-IN a process cost system, the unit cost is total manufacturing cost for the period divided by the units produced during the period.;Instruction;Identify each statement as true or false. If false indicate how to correct the statement;Exercise16-2;Harrelson Company manufactures pizza sauce through two production department;Cooking and Canning In each process, material and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts shows the following debits;Cooking Canning;Beginning work in process $ 0 $ 4,000;Materials 21,000 9,000;Labor 8,800 7,000;Overhead 31500 25,800;Cost transferred in 53,000;Instruction;Journalize the April transactions;Exercise 16-3;The ledger of Custer Company has the following work in process account;Work in process- Painting;5/1 Balance 3,590;5/31 Materials 5,160;5/31 Labor 2,740;5/31 Overhead 1,380;5/31 Transferred out;5/31 Balance?;Production records show that there were 400 units in the beginning inventory, 30 % complete, 1,400 units started, and 1,500 units transferred out. The beginning work in process had materials cost of 2,040 and conversion cost of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.;Instructions;1-how many units are in process at Mai 31?;2- What is the unit Materials cost for May?;3- What is the unit conversion cost for May?;4-What is the total cost of the unit transferred out of May?;5- What is the cost of the May 31 inventory?;Exercise 16-4;Schrager manufacturer Company has two production departments;Cutting and Assembly, July 1 inventories are Raw Materials $2,400, work in progress- Cutting$2,900 work in progress- Assembly $ 10,600 and finished Goods 31,000. During July the following transaction occurred.;1-Purchased $ 62,500 of raw Materials on account;2-Incurred $60,000 of factory labor(Credit wages Payable);3-Incurred $ 70,000 of manufacturing overhead, 40, was paid and the remainder is unpaid;4-Requisitioned materials for cutting $ 15,700 and assembly $8,900;5-Used factory labor for Cutting $33, 000 and Assembly $27,000;6-Apply overhead at the rate of $18 per machine hour. Machine hour were Cutting 1,680 and Assembly 1,720;7-Transferred goods costing 67, 700 from the Cutting department to the Assembly department;8-Transferred good costing $134,900from Assembly to Finish Goods.;9-Sold goods costing $150,000 for 200,000 on account.;Journalize the transaction(Omit explanations);b)Determine the unit

 

Paper#31725 | Written in 18-Jul-2015

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