Sam LLC incurred the following costs in the month of October;Material $55,000;Labor $46,000;Factory Overhead $23,000;There was no beginning inventory. Ending work in process;was 10,000 units at 50 percent complete. 15,000 units were;completed and transferred out.;Prepare a cost of production summary for the month, assuming;Sam uses the average cost method of process costing. (This;problem is worth 20 points.);2.Consider the following cost of production summary for Carrigan;Products for May;Carrigan Products;Cost of Production Summary;For the Month Ended May 31, 20?;Cost of work in process, beginning of month;Materials $8,200;Labor 5,500;Factory overhead 2,000 $15,700;Cost of production for month;Materials $24,000;Labor 17,600;Factory overhead 16,900 58,500;Total costs to be accounted for $74,200;Unit output for month;Finished and transferred to finished goods 2,000;Equivalent units of work in process;end of month (1,000 units, 80% completed) 800;Total equivalent production 2,800;Unit cost for month;Materials [($8,200 + $24,000) ? 2,800] $11.50;Labor [($5,500 + $17,600) ? 2,800] 8.25;Factory overhead [($2,000 + $16,900) ? 2,800] 6.75;Total $26.50;Inventory costs;Cost of goods finished and transferred to;finished goods during month: (2,000 ? $26.50) $53,000;Cost of work in process, end of month;Materials (1,000 ?.8 ? $11.50) $9,200;Labor (1,000 ?.8 ? $8.25) 6,600;Factory overhead (1,000 ?.8 ? $6.75) 5,400 21,200;Total production costs accounted for $74,200;a. Prepare the journal entries to record the production activity.;b. Prepare the Statement of Cost of Goods Manufactured for;May;3.Howard Corporation has two production departments. Curing;has 12,000 units in process at the beginning of the period;three-fourths complete. During the period, 45,000 units were;received from Crushing, 48,000 units were transferred to;Finished Goods, and 9,000 units were in process at the end of;the period, 2/3 complete. Cost information was as follows;Cost of beginning work in process;Cost in Crushing $21,640;Cost in Curing;Materials 8,810;Labor 1,190;Factory overhead 2,420;Costs during the month;Cost of goods received from Crushing $ 85,520;Cost in Curing;Materials 53,830;Labor 10,690;Factory overhead 17,560;Total costs to be accounted for $201,660;a. Determine the unit cost for the month in Curing.;b. Determine the total cost of the products transferred to;finished goods.;c. Determine the total cost of the ending work in process;inventory.;4.Information for Chaucer, Ltd. in July for the Prep Department;the first stage of the production cycle, is as follows;Conversion;Materials Costs;Beginning work in process $8,100 $6,200;Costs added during July 23,400 13,400;Total costs $31,500 $19,600;Goods completed 60,000 units;Ending work in process 15,000 units;Material costs are added at the beginning of the process.;The ending work in process is two-thirds complete as to;conversion costs. How would the total costs accounted for be;distributed using the average cost method?;5.Howard Poster Incorporated had 12,000 units of work in;process in Department A on October 1. These units were 60;percent complete as to conversion costs. Materials are added;in the beginning of the process. During the month of October;38,000 units were started, and 40,000 units were completed.;Howard had 10,000 units of work in process on October 31.;These units were 75 percent complete as to conversion costs.;a. Compute the equivalent units for materials and conversion;costs for the month of October using the FIFO method.;b. Using the average cost method, determine the equivalent;units for materials and conversion costs for the month of;October.;6.Jim Davis Company processes pork into three products?;chops, bacon, and sausage. Production and selling price data;follow;Chops 100,000 lbs. $5.00/lb.;Bacon 210,000 lbs. $4.00/lb.;Sausage 410,000 lbs. $2.00/lb.;Pork is processed in the Processing Department. From the;split-off point, bacon is smoked, sliced, and packaged in the;Bacon Department. The cost incurred for these processes was;$100,000. In addition, sausage was ground and formed into;patties in the Sausage Department after the split-off. This;process cost $60,000.;a. If joint processing costs were $1,500,000, calculate the total;cost of each product using the adjusted sales value method.;b. Prepare the journal entries to (1) record the joint processing;and movement of product out of the Processing Department;after the split off, and (2) record the additional processing;and completion of the bacon and sausage.
Paper#75873 | Written in 18-Jul-2015Price : $19