Chapter 16: Q26QS (page 747)
Hotwax completed products costing $275,000 and transferred them to finished goods. Prepare its journal entry to record the transfer of units from production to finished goods inventory.
Finished goods inventory is debited with $275,000.
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BOGO Inc. has two sequential processing departments, roasting and mixing. At the beginning of the month, the roasting department has 2,000 units in inventory, 70% complete as to materials. During the month, the roasting department started 18,000 units. At the end of the month, the roasting department had 3,000 units in ending inventory, 80% complete as to materials.
Cost information for the roasting department for the month is as follows:
Beginning work in process inventory (direct materials) | 2,170 |
Direct materials added during the month | 27,900 |
Question: Explain why equivalent units of production for both direct labor and overhead can be the same as, and why they can be different from, equivalent units for direct materials.
Assume that a company produces a single product by processing it first through a single production department. Direct labor costs flow through what accounts in this company’s process cost system?
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.
For each of the following products and services, indicate whether it is more likely produced in a process operation (P) or a job order operation (J).
1. Beach toys
2. Concrete swimming pool
3. iPhones
4. Wedding reception
5. Custom suits
6. Juice
7. Tattoos
8. Guitar picks
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