Chapter 16: Q11E (page 749)
Refer to the information in Exercise 16-9 and complete parts 1 and 2 using the FIFO method
Material: $2.49
Conversion: $1.94
2. Cost transferred to ending work-in-process inventory: $211,068.
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RSTN Co. produces its product through two sequential processing departments. Direct materials and conversion are added to the product evenly throughout the process. The company uses monthly reporting periods for its process costing system.
During October, the company finished and transferred 150,000 units of its product to Department 2. Of these units, 30,000 were in process at the beginning of the month and 120,000 were started and completed during the month. The beginning work in process inventory was 30% complete. At the end of the month, the work in process inventory consisted of 20,000 units that were 80% complete.
Compute the number of equivalent units of production for October. Use the FIFO method.
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.
Match each of the following items A through G with the best numbered description of its purpose.
A. Factory Overhead account.
B. Process cost summary
C.Equivalent units of production
D.Work in Process Inventory account
E. Raw Materials Inventory account
F. Materials requisition
G. Finished Goods Inventory account
1. Notifies the materials manager to send materials to a production department.
2. Holds costs of indirect materials, indirect labor, and similar costs until assigned to production.
3. Holds costs of direct materials, direct labor, and applied overhead until products are transferred from production to finished goods (or another department).
4. Standardizes partially completed units into equivalent completed units.
5. Holds costs of finished products until sold to customers.
6. Describes the activity and output of a production department for a period.
7. Holds costs of materials until they are used in production or as factory overhead.
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities.
Assembly department | Units | Percent of direct material added | Percent of conversion added |
Beginning work-in-process | 2,000 | 60% | 40% |
Units transferred out | 9,000 | 100 | 100 |
Ending work-in-process | 3,000 | 80 | 30 |
Beginning work-in-process | |
Inventory – assembly department | \(1,581 (includes \)996 for direct materials and \(585 for conversion) |
Costs added during the month: | |
Direct materials | \)10,404 |
Conversion | $12,285 |
Required
Calculate the assembly department’s equivalent units of production for materials and for conversion for November. Use the weighted-average method.
Refer to the information in Exercise 16-14. Prepare journal entries dated June 30 to record:
(a) raw materials purchases,
(b) direct materials usage,
(c) indirect materials usage,
(d) direct labor usage,
(e) indirect labor usage,
(f) other overhead costs,
(g) overhead applied, and
(h) payment of total payroll costs.
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