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PROBLEM 4?15 Brady Products_PROBLEM 4?17 Bohemian Links Inc and CASE 4?20 Durall Company

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Question;PROBLEM 4?15Brady Products manufactures a silicone paste wax that goes through three processing departments?Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the CrackingDepartment. The Work in Process T-account for the Cracking Department for a recent month isgiven below:Work in Process?Cracking DepartmentInventory, May 1 63,700 Completed and transferredMaterials 397,600 to the Blending Department?Conversion 187,600Inventory, May 31?The May 1 work in process inventory consisted of 35,000 pounds with $43,400 in materials costand $20,300 in conversion cost. The May 1 work in process inventory was 100% complete withrespect to materials and 80% complete with respect to conversion. During May, 280,000 poundswere started into production. The May 31 inventory consisted of 45,000 pounds that were 100%complete with respect to materials and 60% complete with respect to conversion. The companyuses the weighted-average method to account for units and costsRequired:1. Determine the equivalent units of production for May.2. Determine the costs per equivalent unit for May.3. Determine the cost of the units completed and transferred to the Blending Department duringMay.PROBLEM 4?17 Comprehensive Problem, Second Production Department?Weighted-AverageMethod [LO2, LO3, LO4, LO5]Bohemian Links Inc. produces sausages in three production departments?Mixing, Casing andCuring, and Packaging. In the Mixing Department, meats are prepared and ground and then mixedwith spices. The spiced meat mixture is then transferred to the Casing and Curing Department,where the mixture is force-fed into casings and then hung and cured in climate-controlled smokingchambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for April for theCasing and Curing Department follow:Percent CompletedUnits Mixing Materials ConversionWork in process inventory, April 1......... 1 100% 60% 50%Work in process inventory, April 30........ 1 100% 20% 10%Mixing Materials ConversionWork in process inventory, April 1......... $1,640 $26 $105Cost added during April................ $94,740 $8,402Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department.The spiced meat mixture is processed in the Casing and Curing Department in batches, eachunit in the above table is a batch, and one batch of spiced meat mixture produces a set amount ofsausages that are passed on to the Packaging Department. During April, 60 batches (i.e., units)were completed and transferred to the Packaging Department.Required:1. Determine the equivalent units for April for mixing, materials, and conversion. Do not roundoff your computations.2. Compute the costs per equivalent unit for April for mixing, materials, and conversion.3. Determine the total cost of ending work in process inventory and the total cost of units transferredto the Packaging Department in April.4, Prepare a cost reconciliation report for the Casing and Curing Department for April.CASE 4?20 Second Department?Weighted-Average Method [LO2, LO3, LO4]Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets gothrough three processing departments: Mixing, Forming, and Stamping. The company?s accountant(who is very inexperienced) has prepared a summary of production and costs for the FormingDepartment for October as follows:Forming Department costs:Work in process inventory, October 1, 8,000 units:materials 100% complete, conversion 7?8 complete........ $ 22,420*Costs transferred in from the Mixing Department........... 81,480Material added during October (added when processingis 50% complete in the Forming Department)............ 27,600Conversion costs added during October.................. 96,900Total departmental costs.............................. $228,400Forming Department costs assigned to:Units completed and transferred to the StampingDepartment, 100,000 units at $2.284 each.............. $228,400Work in process inventory, October 31, 5,000 units:conversion 2?5 complete............................. ?Total departmental costs assigned........................ $228,400*Consists of cost transferred in, $8,820, materials cost, $3,400, and conversion costs,$10,200.After mulling over the data above, Durall?s president commented, ?I can?t understand what?shappening here. Despite a concentrated effort at cost reduction, our unit cost actually went up inthe Forming Department last month. With that kind of performance, year-end bonuses are out ofthe question for the people in that department.?The company uses the weighted-average method in its process costing.Required:1. Prepare a report for the Forming Department for October showing how much cost should havebeen assigned to the units completed and transferred to the Stamping Department and to theending work in process inventory.2. Explain to the president why the unit cost appearing on the report prepared by the accountantis so high.="margin:>

 

Paper#38278 | Written in 18-Jul-2015

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