Gibson Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $24,500. During the accounting period, the department incurred $45,500 of transferred-in cost, $27,000 of materials cost, $69,500 of labor cost, and $71,100 of applied overhead cost. The department processed 6,600 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,200 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,400 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost of the finished goods inventory transferred out of the assembly department? Cost Allocation a. To finished goods a. To ending inventory b. To finished goods b. To ending inventory

Gibson Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $24,500. During the accounting period, the department incurred $45,500 of transferred-in cost, $27,000 of materials cost, $69,500 of labor cost, and $71,100 of applied overhead cost. The department processed 6,600 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,200 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,400 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost of the finished goods inventory transferred out of the assembly department? Cost Allocation a. To finished goods a. To ending inventory b. To finished goods b. To ending inventory

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
Baird Watches, Incorporated makes watches. Its assembly department started the accounting period with a beginning inventory balance of $24,500. During the accounting period, the department incurred $40,500 of transferred-in cost, $23,500 of materials cost, $60,500 of labor cost, and $32,500 of applied overhead cost. The department processed 6,050 total equivalent units of product during the accounting period. Required (Each requirement is independent of the other.) a. Assuming that 1,300 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of…
Lennox Watches, Inc. makes watches. Its assembly department started the accounting period with a beginning inventory balance of $68,000. During the accounting period, the department incurred $96,000 of transferred-in cost, $62,000 of materials cost, $120,000 of labor cost, and $134,000 of applied overhead cost. The department processed 6,000 total equivalent units of product during the accounting period. Required a. Assuming that 1,200 equivalent units of product were in the ending work in process inventory, determine the amount of cost transferred out of the Work in Process Inventory account of the assembly department to the Finished Goods Inventory account. What was the assembly department's cost of ending work in process inventory? b. Assuming that 5,600 units of product were transferred out of the assembly department's work in process inventory to finished goods inventory, determine the amount of the assembly department's cost of ending work in process inventory. What was the cost…
Hawthorn Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $18,000 and an ending balance of $16,000. During the year, the company purchased $66,000 of direct materials. Direct labor for the year totaled $120,000, while manufacturing overhead amounted to $161,000. The Work in Process Inventory account had a beginning balance of $30,000 and an ending balance of $19,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Start by calculating the direct materials used during the year. Hawthorn Industries Calculation of Direct Materials Used For Current Year Beginning raw materials inventory Plus: Purchases of direct materials Materials available for use Less: Ending raw materials inventory Direct materials…
Kelvin Industries is calculating its Cost of Goods Manufactured at year-end. The company's accounting records show the following: The Raw Materials Inventory account had a beginning balance of $16,000 and an ending balance of $21,000. During the year, the company purchased $51,000 of direct materials. Direct labor for the year totaled $125,000, while manufacturing overhead amounted to $152,000. The Work in Process Inventory account had a beginning balance of $24,000 and an ending balance of $23,000. Assume that Raw Materials Inventory contains only direct materials. Compute the Cost of Goods Manufactured for the year. (Hint: The first step is to calculate the direct materials used during the year.) Start by calculating the direct materials used during the year. Kelvin Industries Calculation of Direct Materials Used For Current Year Plus: Less: Direct materials used i
Dash Company adopted a standard costing system several years ago. The standard costs for the prime costs (i.e., direct materials and direct labor) of its single product are: $30.00 112.00 Material (6 kilograms x $5.00 per kilogram) Labor (7 hours x $16.00 per hour) All materials are added at the beginning of processing. The following data were taken from the company's records for November: In-process beginning inventory In-process ending inventory 1,000 Units completed 7,600 Budgeted output 8,000 Purchases of materials 70,000 Total actual direct labor costs $ 850,000 Actual direct labor hours 57,400 Materials usage variance $ 3,500 Total materials variance $ 700 None units, 70% complete as to direct labor units units kilograms hours Unfavorable Unfavorable Required: 1. Compute for November: a. The direct labor efficiency variance. Is this variance favorable (F) or unfavorable (U)? b. The direct labor rate variance. Is this variance favorable (F) or unfavorable (U)? c. The actual number…
Vernon Company had 250 units of product in its work in process inventory at the beginning of the period and started 2,100 additional units during the period. At the end of the period, 790 units were in work in process inventory. The ending work in process inventory was estimated to be 60 percent complete. The cost of work in process inventory at the beginning of the period was $6,280, and $25,044 of product costs was added during the period. Required a. Calculate the number of equivalent units of production. b. Calculate the product cost per equivalent unit. c. Calculate the total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts. Complete this question by entering your answers in the tabs below. Req A and B Req C a. Calculate the number of equivalent units of production. b. Calculate the product cost per equivalent unit. Note: Round "Cost per equivalent unit" answer to 2 decimal places. a. Equivalent units b. Cost per equivalent unit
Compute the total cost of the units transferred to finished goods Inventory. JKL FABRICATORS Inc., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Activity Inspection Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours Rate P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Maintenance Receiving 1,000 recciving orders At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the ending…
Compute the total cost of the units-in-process inventory at the end of the period. JKL FABRICATORS Ic., manufactures frames to bicycles. Each frame passes through three processes: CUTTING, WELDING & PAINTING. In July, the PAINTING Department reported the following data. Beginning WIP consisted of 40,500 units, 95% complete with respect to direct labor and overhead. Costs in the beginning inventory included prime cost, P15,000; applied overhead P12,110 and transferred-in, P31,500. Costs added to production during the month were direct materials, P72,900; direct labor P64,880; transferred-in, P102,060. Overhead was assigned using the following information: Activity Inspection Rate P7.50 per inspection hour P12 per maintenance hour P10 per receiving order Actual Driver Usage 3,000 inspection hours 1,200 maintenance hours 1,000 receiving orders Maintenance Receiving At the end of the month, 121,500 units were transferred out to the Finished Goods Inventory, leaving 13,500 units in the…
Hornsby has a single production department, and uses a process-costing system. The balance in its Work- in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that S86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for $86,000. B) a debit to Work-in-Process Inventory for $432,000 C) a debit to Cost of Goods Sold for $432,000. D) a debit to Finished-Goods Inventory for $432,0. E) a debit to Finished-Goods Inventory for $86,00.
[The following information applies to the questions displayed below.] Annin Laboratories uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for February: Beginning WIP inventory Direct materials Conversion costs Current period costs Direct materials Conversion costs $ 24,553 8,005 145,832 72,740 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory Current period units started Ending inventory 6,000 units (40% complete as to materials, 15% complete as to conversion) 44,800 units 19,000 units (75% complete as to materials, 35% complete as to conversion) Required: a. Compute the equivalent units for the materials and conversion cost calculations. b. Compute the cost per equivalent unit for direct materials and conversion costs. Complete this question by entering your answers in the tabs below. Required A Required B Compute the cost per equivalent…