Chapter 18: Q.18-12RQ (page 1006)
Question: If a company began the month with 50 units in process, started another 600 units during the month, and ended the month with 75 units in process, how many units were completed?
Answer:
The number of units completed during the year is 575 units.
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Carla Carpet manufactures broadloom carpet in seven processes: spinning, dyeing, plying, spooling, tufting, latexing, and shearing. In the Dyeing Department, direct materials (dye) are added at the beginning of the process. Conversion costs are incurred evenly throughout the process. Information for November 2018 follows:
UNITS | |
Beginning work-in-process inventory | 70 rolls |
Transferred in from spinning department during November | 550 rolls |
Completed during November | 480 rolls |
Ending work in process inventory (80% complete for conversion work) | 140 rolls |
COSTS | |
Beginning work in process inventory (transferred in costs, \(4,000, Materials costs, \)1,400 conversion costs, \(5,300) | \)10,700 |
Transferred in from the spinning department | 23,280 |
Material costs added during November | 14,100 |
Coversion cost added during November (manufacturing wages, \(8,725; manufacturing overhead allocated, \)43,991) | 52,716 |
Requirements
1. Prepare the November production cost report for Carla’s Dyeing Department.
The company uses the weighted-average method.
2. Journalize all transactions affecting Carla’s Dyeing Department during November, including the entries that have already been posted. Assume labor costs are accrued and not yet paid.
Question: Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling.
During February, the filtration process incurred the following costs in processing
200,000 liters:
Wages of workers operating filtration equipment | $19,950 |
Manufacturing overhead allocated to filtration | 20,050 |
Water | 110,000 |
Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the weighted-average method.
Requirements
1. Compute the February conversion costs in the Filtration Department.
2. The Filtration Department completely processed 200,000 liters in February. What was the filtration cost per liter?
Question: Refer to Short Exercises S18-8 and S18-9. Use Complete Foods’s costs per equivalent unit of production for direct materials and conversion costs that you calculated in Short Exercise S18-9.
Calculate the cost of the 38,000 units completed and transferred out and the
24,000 units, 20% complete, in the ending Work-in-Process Inventory.
Most companies using a process costing systems have to calculate more than one EUP. Why? How many do they have to calculate?
Question: Department 1 is transferring units that cost $40,000 to Department 2. Give the journal entry.
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