Chapter 16: Q5DQ (page 743)
Identify the control document for materials flow when a materials requisition slip is not used.
Short Answer
The business entity can use thematerial consumption report in place of the material requisition slip.
Chapter 16: Q5DQ (page 743)
Identify the control document for materials flow when a materials requisition slip is not used.
The business entity can use thematerial consumption report in place of the material requisition slip.
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Get started for freeAssume 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 companyโs process cost system?
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning of its production process, and that conversion costs are added uniformly throughout the process.
Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; includes \(45,000 of direct materials cost, \)25,600 in direct labor cost, \(30,720 overhead cost) | \)101,320 |
Units started in September | 28,000 |
Units completed and transferred to finished goods inventory | 23,000 |
Work in process inventory, September 30 (__?__ units, 100% complete with respect to direct materials, 40% complete with respect to direct labor and overhead) | \( |
Costs incurred in September | |
Direct materials | \)375,000 |
Conversion | $341,000 |
Compute each of the following, assuming Hi-Test uses the weighted-average method of process costing.
1. The number of physical units that were transferred out and the number that are in ending work in process inventory.
2. The number of equivalent units for materials for the month.
3. The number of equivalent units for conversion for the month.
4. The cost per equivalent unit of materials for the month.
5. The cost per equivalent unit for conversion for the month.
6. The total cost of goods transferred out.
7. The total cost of ending work in process inventory
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
Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.
Question: General Mills needs a steady supply of ingredients for processing. What are some risks the company faces regarding its ingredients?
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