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Chapter 04 Homework
1.
value:
10.00 points
Brady Products manufactures a silicone paste wax that goes through three processing departmentsCracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking
Department. The Work in Process T-account for the Cracking Department for a recent month is given
below:
Work in Process- Cracking Department
Inventory, May 1
Materials
Conversion
Inventory, May 31
Completed and transferred to
the Blending Department
281,600
680,600
503,280
?•
?•
The May 1 work in process inventory consisted of 80,000 pounds with $155,200 in materials cost and
$126,400 in conversion cost. The May 1 work in process inventory was 100°10 complete with respect to
materials and 80o/o complete with respect to conversion. During May, 318,000 pounds were started into
production. The May 31 inventory consisted of 92,000 pounds that were 100°10 complete with respect to
materials and 70% complete with respect to conversion. The company uses the weighted-average
method to account for units and costs.
Required:
1. Determine the equivalent units of production for May.
Equivalent units of production
Materials
Conversion
I 398000 1
I 310400 1
2. Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places. Omit
the"$" sign in your response.)
Materials
Cost per equivalent unit
$I
2.1 1
Conversion
$I
1.1 1
3. Determine the cost of the units completed and transferred to the Blending Department during May.
(Omit the "$" sign in your response.)
Cost of units completed and transferred
out
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Materials
Conversion
Total
$ I 642600 1
$ I 520200 1
$ 11162800 I
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Chapter 04 Homework
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2.
I Question #2 (of 5)
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value:
10.00 points
Billinstaff Industries uses the weighted-average method in its process costing system. Data for the
Assembly Department for May appear below:
Work in process, May 1
Cost added during May
Equivalent units of production
Materials
$ 30,800
$186,690
2,600
Labor
$50,625
$33,750
2,500
Overhead
$ 246,600
$ 164,400
2,400
Required:
1. Compute the cost per equivalent unit for materials, for labor, and for overhead. (Round your
answers to 2 decimal places. Omit the "$" sign in your response.)
Cost per equivalent unit
Materials
$ I 83.65 1
Labor
$ I 33.75 1
Overhead
$ I 111.25 1
2. Compute the total cost per equivalent whole unit. (Round your final answer to 2 decimal places.
Omit the "$" sign in your response.)
Total cost per equivalent unit
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$ I 288.65 I
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Chapter 04 Homework
-'4 prov
3.
I Question #3 (of 5)
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value:
10.00 points
Lindex Company uses a process costing system. The following data are available for one department for
October:
Work in process, October 1
Work in process, October 31
Units
46,000
40,000
Percent Completed
Materials Conversion
85o/o
71°/o
55°/o
48o/o
The department started 407,000 units into production during the month and transferred 413,000
completed units to the next department.
Required:
Compute the equivalent units of production for October, assuming that the company uses the weightedaverage method of accounting for units and costs.
Equivalent units of production
,,,.,~
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Materials
I 441400]
--
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Conversion
I 432200]
----
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Chapter 04 Homework
4.
value:
10.00 points
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages
prior to completion.
Information on work in the first department, Cooking, is given below for May:
Production data:
Pounds in process, May 1: materials
100% complete; conversion 90o/o complete
Pounds started into production during May
Pounds completed and transferred to
the next department
Pounds in process, May 31 :
materials 60o/o complete; conversion 40% complete
Cost data:
Work in process inventory, May 1:
Materials cost
Conversion cost
Cost added during May:
Materials cost
Conversion cost
55,000
330,000
?•
15,000
$ 78,900
$ 23,700
$ 410,010
$ 130,460
The company uses the weighted-average method.
Required:
1. Compute the equivalent units of production.
Materials
319000 1
Conversion
I 31600-0J
I
Equivalent units of production
2. Compute the costs per equivalent unit for the month. (Round your answers to 2 decimal places.
Omit the "$" sign in your response.)
Cost per equivalent unit
Materials
1.29
$I
Conversion
$[ 0.41 ]
I
3. Determine the cost of ending work in process inventory and of the units transferred out to the next
department. (Omit the "$" sign in your response.)
Cost of ending work in process inventory
Cost of units completed and transferred out
Materials
11610 1
$I
$I 411300 1
Conversion
2460 1
151100 1
$I
$I
4. Prepare a cost reconciliation report for the month. (Omit the "$"sign in your response.)
Cost Reconciliation
Costs to be accounted for:
( Cost of beginning work in process inventory
~)
$I 102600 I
( Costs added to production during the period
~)
I 540410 1
$I 643010 1
Total cost to be accounted for
Costs accounted for as follows:
( Cost of ending work in process inventory
~)
( Cost of units completed and transferred out
~)
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14010 1
I 629000 1
$I 643010 1
Total cost accounted for
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Total
14010 1
629000 1
$I
$I
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Chapter 04 Homework
5.
value:
10.00 points
Nature's Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la
Vache. The perfume goes through two processing departments: Blending and Bottling.
The following incomplete Work in Process account is provided for the Blending Department for
March:
Work in Process-Blending
March 1 balance
Materials
Direct labor
Overhead
33,300
146,600
65,200
491,000
March 31 balance
Completed and transferred
to Bottling (760,000 ounces)
?•
?•
'--
The $33,300 beginning inventory in the Blending Department consisted of the following elements:
materials, $8,800; direct labor, $3,800; and overhead applied, $20,700.
Costs incurred during March in the Bottling Department were: materials used, $44,000; direct labor,
$16,700; and overhead cost applied to production, $103,000.
Required:
1. Prepare journal entries to record the costs incurred in both the Blending Department and Bottling
Department during March. (Omit the "$"sign in your response.)
a. Raw materials were issued for use in production.
b. Direct labor costs were incurred.
c. Manufacturing overhead costs for the entire factory were incurred, $626,000. (Credit Accounts
Payable and use a single Manufacturing Overhead control account for the entire factory.)
d. Manufacturing overhead was applied to production using a predetermined overhead rate.
e. Units that were complete with respect to processing in the Blending Department were transferred to
the Bottling Department, $662,000.
f. Units that were complete with respect to processing in the Bottling Department were transferred to
Finished Goods, $800,000.
g. Completed units were sold on account for $1,470,000. The cost of goods sold was $610,000.
Items
a.
General Journal
Work in process-Blending
Work in process-Bottling
( Raw materials
b.
d.
,.. "
....
,..
~)
Work in process-Blending
Work in process-Bottling
( Salaries and wages payable
c.
....
Debit
IT46,6oo l
I 44,ooo l
I 190600 1
65,200 1
16,7001
~)
( Manufacturing overhead
~)
( Accounts payable
~)
81900 1
I 626000 1
I 626000 1
I 491,000 1
Work in process-Blending
Work in process-Bottling
1103,0001
I 594000 1
( Manufacturing overhead
e.
( Work in process-Bottling
~)
I 662000 1
I 662000 1
( Work in process-Blending
f.
( Finished goods
~)
I 800000 1
I 800000 1
( Work in process-Bottling
g.
( Accounts receivable
~)
11410000 I
11470000 1
( Sales
( Cost of goods sold
( Finished goods
Credit
~)
I 610000 1
I 610000 1
2. Post the journal entries from ( 1) above to T-accounts. The following account balances existed at the
beginning of March. (The beginning balance in the Blending Department's Work in Process account is
given above.) (Record the transactions in the given order. Omit the"$" sign in your response.)
$210,600
$ 52,000
$ 28,000
Raw materials
Work in process-Bottling department
Finished goods
After posting the entries to the T-accounts, find the ending balances in the inventory accounts and the
manufacturing overhead account.
Accounts Receivable
(g
11470000 1
i
Raw Materials
Bal.
I 210600 I
Bal.
I 20000 1
(a
I 190500 I
Work in Process - Blending Department
I 33300 I
I 146600 I
Bal.
(a
(b
(d
*)
~)
(e
~)
I 662000 1
I 65200 1
I 491000 I
~)
Bal.
I 74100 1
Work in Process - Bottling Department
----------------~~~~~~~~~----~~~
Bal.
52000 1 ( f
~)
I 800000 1
( a
~)
I 44000 1
( b
~)
I 16100 I
*)
I 103000 I
(d
~)
( e
I 662000 1
I 11100 1
Bal.
Finished Goods
(_g_ _ __.......
*)
28000 I
Bal.
(f
I 800000 1
Bal.
I 218000 I
I 610000 I
Manufacturing Overhead
(c
I 626000 I ( d
Bal.
I 32000 1
I 594000 1
Accounts Payable
I
I
I
cc
~)
I 626000 1
~)
81900 1
~)
11410000 I
Salaries and Wages Payable
cb
Sales
cg
Cost of Goods Sold
~)
(g
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Chapter 04 Homework
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