"I think we goofed by hiring the new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this reporthe prepared for last month for the Finishing Department. I can't understand it."Finishing Department costs:Work in process inventory, April 1, 1,200 units; materials100% complete; conversion 88% completeCosts transferred in during the month from the precedingdepartment, 2,700 unitsMaterials cost added during the monthConversion costs incurred during the month$ 8,663*30, 29512,46526,490$ 77,913Total departmental costsFinishing Department costs assigned to:Units completed and transferred to finished goods, 3,300units at $23.61 per unitWork in process inventory, April 30, 600 units; materials0% complete; conversion 50% complete0Total departmental costs assigned$ 77,913*Consists of cost transferred in, $4,298; materials cost, $2,055; and conversion cost, $2,310.$ 77,913"He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is he's been away from processcosting for a long time, and it's coming back slowly.""It's not just the format of his report I'm concerned about. Look at that $23.610 unit cost he's come up with for April. Doesn't that seemhigh to you?" said Ms. Scarpino."Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be theexplanation," replied Mr. Harrop. "I'll get someone else to redo this report and then we can see what's going on."Required:1-a. Calculate the equivalent units of production.1-b. Calculate the cost per equivalent unit.Note: Round your answers to 2 decimal places.Provost Industries manufactures a ceramic product that goes through two processing departments-Molding and Finishing. Thecompany uses the weighted-average method of process costing. Required:1-a. Calculate the equivalent units of production.1-b. Calculate the cost per equivalent unit.Note: Round your answers to 2 decimal places.1-c. How much cost should have been assigned to the ending work in process inventory?Note: Round your intermediate calculations to 2 decimal places.1-d. How much cost should have been assigned to the units completed and transferred to finished goods?Note: Round your intermediate calculations to 2 decimal places.1-a. Equivalent units of production1-b. Cost per equivalent unit1-c. Cost of ending work in process inventory1-d. Cost of units completed and transferred outTransferredIn CostsMaterialsConversion$$Total00

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Description: "I think we goofed by hiring the new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this reporthe prepared for last month for the Finishing Department. I can't understand it."Finishing Department costs:Work

Inventory -The things that a business keeps on hand in order to make money are referred to as…

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1-a. Equivalent units of production 1-b. Cost per equivalent unit 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out Transferred In Costs Materials Conversion $ $ Total 0 0

1-a. Equivalent units of production 1-b. Cost per equivalent unit 1-c. Cost of ending work in process inventory 1-d. Cost of units completed and transferred out Transferred In Costs Materials Conversion $ $ Total 0 0

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...

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Narwhal Swimwear has a beginning work in process inventory of 13,500 units and transferred in 130,000 units before ending the month with 14,000 units that were 100% complete with regard to materials and 30% complete with regard to conversion costs. The cost per unit of material is $5.80 and the cost per unit for conversion is $8.20 per unit. Using the weighted-average method, what is the amount of material and conversion costs assigned to the department for the month?
AAA Appliances Inc. has two production departments. The nature of the process is such that no units remain in process in Finishing at the end of the period. At the beginning of the period, 10,000 units with a cost of 30,000 were transferred from Assembly to Finishing. Finishing incurred costs of 8,800 for materials, 7,200 for labor, and 8,800 for factory overhead, and finished 10,000 units during the month. a. Determine the unit cost for the month in Finishing. b. Determine the unit cost of the products transferred to finished goods.
Fordman Company has a product that passes through two processes: Grinding and Polishing. During December, the Grinding Department transferred 20,000 units to the Polishing Department. The cost of the units transferred into the second department was 40,000. Direct materials are added uniformly in the second process. Units are measured the same way in both departments. The second department (Polishing) had the following physical flow schedule for December: Costs in beginning work in process for the Polishing Department were direct materials, 5,000; conversion costs, 6,000; and transferred in, 8,000. Costs added during the month: direct materials, 32,000; conversion costs, 50,000; and transferred in, 40,000. Required: 1. Assuming the use of the weighted average method, prepare a schedule of equivalent units. 2. Compute the unit cost for the month.
During March, the following costs were charged to the manufacturing department: $22,500 for materials; $45,625 for labor; and $50,000 for manufacturing overhead. The records show that 40,000 units were completed and transferred, while 10,000 remained in ending inventory. There were 45,000 equivalent units of material and 42,500 units of conversion costs. Using the weighted-average method, prepare the companys process cost summary for the month.
AAA Appliances Inc. has two production departments. The nature of the process is such that no units remain in process in Finishing at the end of the period. At the beginning of the period, 10,000 units with a cost of 30,000 were transferred from Assembly to Finishing. Finishing incurred costs of 8,800 for materials, 7,200 for labor, and 8,800 for factory overhead, and finished 10,000 units during the month. Using the data in E5-9, prepare a statement of cost of goods manufactured for the month ended January 31, 2016, assuming that no further work was done in Assembly during January.
Chavez Concrete Inc. has two production departments. Blending had 1,000 units in process at the beginning of the period, two-fifths complete. During the period 7,800 units were received from Mixing, 8,200 units were transferred to the finished goods storeroom, and 600 units were in process at the end of the period, 1/3 complete. The cost of the beginning work in process was: The costs during the month were: 1. Using the data in E5-15, prepare a cost of production summary for the month ended January 31, 2016. 2. Prepare a journal entry to transfer the cost of the completed units from Blending to the finished goods storeroom.
During October, McCourt Associates incurred total production costs of 60,000 for copyediting manuscripts and had the following equivalent units schedule: Required: 1. Calculate the cost of copyediting one manuscript for October. 2. Assign costs to manuscripts completed and to EWIP and then do a cost reconciliation. 3. What if the costs assigned to units completed and EWIP total were calculated using a unit cost of 225? What is the discrepancy between the costs assigned and the costs to account for? What could have caused an incorrect unit cost?
Holmes Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department: Costs assigned to beginning work in process: direct materials, 90,000; conversion costs, 33,750. Manufacturing costs incurred during April: direct materials, 75,000; conversion costs, 220,000. Holmes uses the weighted average method. Required: 1. Compute the unit cost for April. 2. Determine the cost of ending work in process and the cost of goods transferred out.
During the month of June, the mixing department produced and transferred out 3,500 units. Ending work in process had 1,000 units, 40 percent complete with respect to conversion costs. There was no beginning work in process. The equivalent units of output for conversion costs for the month of June are: a. 3,500 b. 4,500 c. 3,900 d. 1,000
"I think we goofed by hiring the new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report he prepared for last month for the Finishing Department. I can't understand it." Finishing Department costs: Work in process inventory, April 1, 500 units; materials 100% complete; conversion 88% complete Costs transferred in during the month from the preceding department, 2,000 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 1,900 units at $25.59 per unit Work in process inventory, April 30, 600 units; materials 8% complete; conversion 40% complete $ 48,621 Total departmental costs assigned *Consists of cost transferred In, $4,270; materials cost, $1,985; and conversion cost, $2,170. He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is he's been away…
"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can't understand it." Finishing Department costs: Work in process inventory, April 1, 1,450 units; materials 100% complete; conversion 88% complete Costs transferred in during the month from the preceding department, 2,950 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 3,800 units at $23.26 per unit Work in process inventory, April 30, 600 units; materials 0% complete; conversion 60% complete $ 8,748* 34,270 14,450 30,920 $ 88,388 $ 88,388 0 Total departmental costs assigned $ 88,388 *Consists of cost transferred in, $4,308; materials cost, $2,080; and conversion cost, $2,360. "He's struggling to learn our system," replied Frank…
"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can't understand it." Finishing Department costs: Work in process inventory, April 1, 450 units; materials 100% complete; conversion 60% complete Costs transferred in during the month from the preceding department, 1,950 units Materials cost added during the month Conversion costs incurred during the month Total departmental costs Finishing Department costs assigned to: Units completed and transferred to finished goods, 1,800 units at $25.71 per unit Work in process inventory, April 30, 600 units; materials 0% complete; conversion 35% complete Total departmental costs assigned $ 8,208* 17,940 6,210 13,920 $ 46,278 $ 46,278 0 $ 46,278 *Consists of cost transferred in, $4,068; materials cost, $1,980; and conversion cost, $2,160. "He's struggling to learn our system," replied Frank…