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Two Accounting Problems - Kerwin Kleaning Products




Question;Problem;6-1;Cost of Production Summaries, One Department, Two Months, Journal Entries;Manufacturing;data for January and February in the Mixing Department of Kerwin Kleaning;Products follow;All;materials are added at thestartof the process. Labor and factory;overhead are added evenly throughout the process. No units were in process at;the beginning of January. Goods finished in Mixing are transferred to Blending;for further processing.;Required;1. From an;analysis of this information, prepare a cost of production summary for each;month, using the average cost method. (Round unit costs to three decimal;places.)2. Make the;journal entries necessary to record each month's transactions. (Hint: See;Chapter 5 to review.)Exercise 6-1;Computing Equivalent Units of Production for Materials, Labor, and OverheadUsing the data given for Cases 1-3 below, and assuming the use;of the average cost method, compute the separate equivalent units of;production?one for materials and one for labor and overhead?under each of;thefollowing assumptions;(labor and factory overhead are applied evenly during the process in each;assumption):Assumptions:a. All;materials go into production at the beginning of the process.b. All;materials go into production at the end of the process. (Note that this would;have to be a department subsequent to the first department for all materials to;be added at the end of the process.)c. At the;beginning of the process, 75% of the materials go into production and 25% go;into production when the process is one-half completed.Note that you will have three solutions for each of the;following cases;Case 1;?;Started in process 5,000 units, finished 3,000 units, work in;process, end of period, 2,000 units, three-fourths completed.;Case 2;?;Opening inventory 5,000 units, three-fifths completed, started;in process 40,000 units, finished 39,000 units, work in process, end of;period, 6,000 units, one-fourth completed.;Case 3;?;Opening inventory 1,000 units, one-half completed, and 8,000;units, one-fourth completed, started in process 30,000 units, finished 29,000;units, closing inventory work in process 5,000 units, one-fourth completed;and 5,000 units, one-half completed.;="msonormal">="msonormal">


Paper#39033 | Written in 18-Jul-2015

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