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PROCESS COST ACCOUNTING questions homework

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Question;Ex. 161;Watts Company adds;materials at the beginning of the process and conversion costs are incurred;uniformly throughout the process.;Instructions;Complete the following;calculation of equivalent units for materials and conversion costs.;Physical Units;Equivalent Units;Materials;Conversion Costs;Completed and transferred;out;40,000;Ending work in process;Materials;Conversion costs, 75% complete;18,000;Total units;*18,000 ?.75;Ex. 162;The;general ledger of Oates Company has the following work in process account. WORK;IN PROCESS?FINISHING;6/1;Balance;8,000;6/30;Transferred out?;6/30;Materials;1,800;6/30;Labor;2,400;6/30;Overhead;3,350;6/30;Balance;?;Production;records show that there were 2,000 units in beginning inventory, 50% complete;5,000 units started, and 4,500 units transferred out. The beginning work in;process had conversion costs of $ 3,700. The units in ending inventory were 60%;complete. Materials are added at the beginning of the process.;Instructions;Answer the following questions.;(a) How many units are in;process at June 30?;(b) What is the unit conversion;cost for June?;(c) What is the conversion cost;in the June 30 inventory?;Ex. 163;The Assembly Department;uses a process cost accounting system and a weighted-average cost flow;assumption. The department adds materials at the beginning of the process and;incurs conversion costs uniformly throughout the process. During July, $190,000;of materials costs and $133,000 in conversion costs were charged to the;department. The beginning work in process inventory was $108,000 on July 1;comprised of $80,000 of materials costs and $28,000 of conversion costs.;Other data for the month;of July are as follows;Beginning work in process inventory;7/1;25,000 units;(40% complete);Units completed and transferred out;90,000 units;Ending work in process inventory;7/31;10,000 units;(20% complete);Instructions;Answer the following;questions and show computations to support your answers.;1. How many physical units;have to be accounted for in July?;2. What are the equivalent;units of production for materials and for conversion costs for the month of;July?;3. What is the total cost;assigned to the 90,000 units that were transferred out of the process in July?;4. What is the total cost of;the July 31 inventory?;Ex. 164;The Finishing Department of Edwards;Manufacturing has the following production and cost data for July;1. Transferred out, 3,000;units.;2. Started 5,000 units that;are 40% completed at July 31.;3. Materials added, $32,000;conversion costs incurred, $12,500.;Materials are entered at the beginning;of the process. Conversion costs are incurred uniformly during the process.;Instructions;(a) Compute the equivalent;units of production for materials and conversion costs for the month of July.;(b) Compute unit costs and;prepare a cost reconciliation schedule.;Ex. 165;Massey Corporation uses a;process cost system and the weighted -average cost flow assumption. Production;begins in the Fabricating Department where materials are added at the beginning;of the process and conversion costs are incurred uniformly throughout the;process. On March 1, the beginning work in process inventory consisted of;20,000 units which were 60% complete and had a cost of $125,000, $95,000 of;which were materials costs. During March, the following occurred;Materials added;$230,000;Conversion costs incurred;$129,000;Units completed and;transferred out in March;50,000;Units in ending work in;process March 31 (20% complete);15,000;Process Cost;Accounting 21 - 39;Ex.;165 (cont.);Instructions;Answer the following;questions and show the computations that support your answers.;1. What are the equivalent;units of production for materials and conversion costs in the Fabricating;Department for the month of March?;2. What are the costs assigned;to the ending work in process inventory on March 31?;3. What are the costs assigned;to units completed and transferred out during March?;Ex. 166;Given below are the;production data for Department No. 1 for the first month of operation;Costs charged to;Department 1;Materials;$12,000;Labor;2,800;Overhead;12,400;During this first month of;operations, 4,000 units were started into production, 3,500 units were;transferred out, and the remaining 500 units are 100% completed with respect to;materials and 60% complete with respect to conversion costs.;Instructions;Compute the following;(a) Unit materials cost.;(b) Equivalent units of;conversion costs.;(c) Unit conversion cost.;(d) Total cost of 500 units in;process at end of month.;(e) Total cost of 3,500 units;transferred out.;Ex. 167;Grey Building Supplies' total;materials costs are $40,000 and total conversion costs are $39,000. Equivalent;units of production for materials are 10,000, and 6,500 for conversion costs.;Instructions;Compute the unit costs for;materials, conversion costs, and total manufacturing costs for the month.;Ex. 168;Glazer, Inc. has the following;production data for June;Transferred out;50,000;units;Ending work in process;6,000;units;The units in work in process are 100%;complete for materials and 60% complete for conversion costs. Materials costs;are $8 per unit and conversion costs are $11 per unit.;Instructions;Determine the costs to be;assigned to the units transferred out and the units in ending work in process.;Ex. 169;Production;costs chargeable to the Sanding Department in July in Magnum Company are;$20,000 for materials, $17,000 for labor, and $10,000 for manufacturing;overhead. Equivalent units of production are 25,000 for materials and 18,000;for conversion costs.;Instructions;Compute the unit costs for materials;and conversion costs.;Ex. 170;Poole;Manufacturing Company uses a process cost system. The Molding Department adds;materials at the beginning of the process and conversion costs are incurred;uniformly throughout the process. Work in process on May 1 was 75% complete and;work in process on May 31 was 40% complete.;Instructions;Complete;the Production Cost Report for the Molding Department for the month of May;using the above information and the information below.;Ex. 170;(cont.);POOLE MANUFACTURING COMPANY;Molding Department;Production;Cost Report;For the Month Ended May 31, 2008;QUANTITIES;Physical Units;Equivalent Units;Materials;Conversion Costs;Units to be accounted for;Work in process, May 1;16,000;Started into production;50,000;Total units;66,000;Units accounted for;Transferred out;46,000;Work;in process, May 31;20,000;Total;units;66,000;COSTS;Unit costs;Materials;Conversion Costs;Total;Costs in May;$198,000;$135,000;$;333,000;Equivalent units;Unit costs;$;$;$;Costs to be accounted for;Work in process, May 1;$;83,000;Started into production;250,000;Total costs;$;333,000;Cost Reconciliation Schedule;Costs accounted for;Transferred out;$;Work in process;May 31;Materials;$;Conversion costs;Total costs;$;333,000;Ex. 171;Baker Winery manufactures fine;wine in two departments, Fermenting and Bottling. In the Fermenting Department;grapes are aged in casks for a period of 30 days. In the Bottling Department;the wine is bottled and then sent to the finished goods warehouse. Labor and;overhead are incurred uniformly through both processes. Materials are entered;at the beginning of both processes. Cost and production data for the Fermenting;Department for December 2008 are presented below;Cost data;Beginning work in process inventory;$;37,000;($30,000 of;materials cost);Materials;390,000;Conversion costs;153,000;Total costs;$;580,000;Ex. 171;(cont.);Production data;Beginning work in process (gallons);10,000;(40%);Gallons started into production;130,000;Ending work in process (gallons);16,000;(25%);Instructions;(a) Compute the equivalent;units of production.;(b) Determine the unit;production costs.;(c) Determine the costs to be;assigned to units transferred out and ending work in process.;Ex. 172;The Assembly Department of;Lynn Company has the following production and cost data at the end of May;2008.;Production: 35,000 units started into;production, 25,000 units transferred out and 10,000 units 100% completed as to;materials and 40% completed as to conversion costs.;Manufacturing Costs: Materials added at;beginning of process, $70,000, labor, $100,000, overhead $74,000.;Instructions;Prepare a production cost report for;the month of May.;Ex. 173;Bunker;Company?Perth Division is a new state of the art production facility that;manufactures landing gear for airplanes. The ending September 30th work in;process is comprised of labor and overhead and is approximately 60% complete.;All materials are assumed to be 100% complete. Total materials costs during the;period totaled $910,000.;Instructions;As;the new plant accountant, you are asked to complete the production cost report;which appears as follows;21;- 46 Test Bank for Accounting;Principles, Eighth Edition;Ex.;173 (cont.);BUNKER COMPANY?Perth Division;Assimilation Department;Production Cost Report;For the Month Ended September 30, 2008;QUANTITIES;Physical Units;Equivalent Units;Materials;Conversion Costs;Units to be accounted for;Work in process, September 1;300;Started into production;1,000;Total units;1,300;Units accounted for;Transferred out;900;900;900;Work in process;September 30;400;400;Total units;1,300;1,300;COSTS;Unit;Costs;Materials;Conversion Costs;Total;Costs in September;$910,000;$;$1,195,000;Equivalent units;Unit costs;$;$;$;250;Costs to be accounted for;Work in process, Sept. 1;$ 263,400;Started into production;Total;costs;$;Cost Reconciliation;Schedule;Costs accounted for;Transferred out;$;Work in process, September;Materials;$;Conversion costs;60,000;Total costs;$1,195,000

 

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