Chapter 16: Q27E (page 754)
Explain a hybrid costing system. Identify a product or service operation that might well fit a hybrid costing system.
A costing method consisting offeatures of both job-order andprocess costing is known as a hybrid costing system.
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Prepare journal entries to record the following production activities.
1. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost \(135,600.
2. Sold \)315,000 of goods on credit. Their cost is $175,000.
Refer to the data in Problem 16-4A. Assume that Tamar uses the FIFO method to account for its process costing system. The following additional information is available:
Required
1. Prepare the company’s process cost summary for May using FIFO.
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.
Braun Company produces its product through a single processing department. Direct materials are added at the beginning of the process. Conversion costs are added to the product evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing. The Work in Process Inventory account had a balance of \(21,300 on November 1, which consisted of \)6,800 of direct materials and \(14,500 of conversion costs.
During the month, the company incurred the following costs:
Direct materials | \) 116,400 |
Conversion | 1,067,000 |
During November, the company started 104,500 units and transferred 100,000 units to finished goods. At the end of the month, the work in process inventory consisted of 12,000 units that were 100% complete with respect to direct materials and 25% complete with respect to conversion.
Required
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.
Refer to the information in Exercise 16-4 and complete the requirements for each of the three separate assumptions using the FIFO method for process costing.
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