Basic Flows, Equivalent UnitsThayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP waszero; EWIP had 36,000 units, 50% complete; and 470,000 units were started. Tableting's data for February are as follows: BWIP was 24,000 units, 20% complete; and 12,000 units were in EWIP, 40%complete.Required:1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.a. Units transferred to Tabletingb. Equivalent units of production483,200 X units452,000units2. For Tableting, calculate the number of units transferred out to Finished Goods.488,000 X units3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces(excluding the bottle).Now, repeat Requirement 2 using this approach.Units transferred out 60,400 X units

Let's take a closer look at the computations. 1a. Units transferred to tableting: The ending work in…

Answered: Basic Flows, Equivalent Units Thayn…

Cornerstones of Cost Management (Cornerstones Series)

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Chapter6: Process Costing

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Problem 9CE: Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling....

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Thayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 490,000 units were started. Tableting's data for February are as follows: BWIP was 26,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete. 1. For Mixing, calculate the number of units transferred to Tableting, and equivalent units of production. Line Item Description Units Units transferred to Tableting _______________ Equivalent units of production _______________ 2. For Tableting, calculate the number of units transferred out to Finished Goods._____________________ 3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight…
Thayn Company produces an arthritis medication that passes through two departments: mixing and tableting. Thayn uses the weighted average method. Data for February for mixing are as follows: BWIP was zero; EWIP had 36,000 units, 50% complete; and 440,000 units were started. Tableting's data for February are as follows: BWIP was 26,000 units, 20% complete; and 12,000 units were in EWIP, 40% complete. Required: 1. For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production. a. Units transferred to Tableting 404,000 V units b. Equivalent units of production 422,000 V units 2. For Tableting, calculate the number of units transferred out to Finished Goods. 418,000 V units 3. Conceptual Connection: Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle). Now, repeat Requirement 2 using this approach.…
Jacson Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two batches of the products are shown below, along with some associated cost information: In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were 60,000 for direct labor and 190,000 for overhead. Budgeted direct labor hours were 5,000. It takes one minute of labor time to mix the ingredients needed for a 100-unit bottle (for either product). In the Bottling Department, conversion costs are applied on the basis of machine hours. Budgeted conversion costs for the department for the year were 400,000. Budgeted machine hours were 20,000. It takes one-half minute of machine time to fill a bottle of 100 units. Required: 1. What are the conversion costs applied in the Mixing Department for each batch? The Bottling Department? 2. Calculate the cost per bottle for the regular and extra strength pain medications. 3. Prepare the journal entries that record the costs of the 12,000 regular strength batch as it moves through the various operations. 4. Suppose that the direct materials are requisitioned by each department as needed for a batch. For the 12,000 regular strength batch, direct materials are requisitioned for the Mixing and Bottling departments. Assume that the amount of cost is split evenly between the two departments. How will this change the journal entries made in Requirement 3?
Powers Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: Mixing and Bottling. For August, the bottling department had 60,900 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 211,000 gallons during the month. Further, the mixing department completed and transferred out 295,000 gallons at a cost of $649,000 in August. Required: 1. Prepare a physical flow schedule for the bottling department. Powers Inc. Physical Flow Schedule - Bottling Department For the Month of August Physical flow schedule: Units in beginning work in process Units started during the period Total units to account for Units completed and transferred out: Units started and completed Units completed from beginning work in process Units in ending work in process Total units accounted for 2. Calculate equivalent units for the transferred-in category. equivalent units 3. Calculate the unit cost for the transferred-in category. If required,…
Deshery Company makes small metal containers. The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs. During the month, 6,000 containers were started. At month end, 1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs). Using the weighted average method, what are the equivalent units for conversion costs? * a. 4,265b. 5,590c. 5,825d. 6,300
Using the FIFO method, what are equivalent units for cloth?
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,200 chairs. During the month, the firm completed 78,800 chairs, and transferred them to the Finishing Department. The firm ended the month with 9,900 chairs in ending inventory. There were 15,500 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 85% complete as to conversion costs. Beginning inventory: Direct materials Conversion costs $24,900 $35,900 Manufacturing costs added during the accounting period: Direct materials Conversion costs A. 83,100 B. 63,300 C. 73,200 O D. 78,800 $168,600 $278,300 How many of the units that were started and completed during February?
QRS Company makes fabric covered hatboxes. The company began September with 500 boxes in process that were 100 percent complete as to cardboard, 80 percent complete as to clothe, and 60 percent complete as to conversion costs. During the month, 3,300 boxes were started. On September 30, 350 boxes were in process (100 percent complete as to cardboard, 70 percent complete as to cloth, and 55 percent complete as to conversion costs). What is the equivalent units of production for the month using Weighted Average method in Cardboard, Cloth, and Conversion respectively? Select one: 3,800 3,295 3,242.50 3,300 3,295 3,342.50 3,300 3,695 3,642.50 3,800 3,695 3,642.50 QRS Company makes fabric covered hatboxes. The company began September with 500 boxes in process that were 100 percent complete as to cardboard, 80 percent complete as to clothe, and 60 percent complete as to conversion costs. During the month, 3,300 boxes…
What is the cost of the goods transferred out during February? (Round intermediary calculations to the nearest cent.) Why are we using the 25% Completed for CC beg WIP vs the 75% completed during the month?
Huron Company produces a commercial cleaning compound known as Zoom. The direct materialsand direct labor standards for one unit of Zoom are given below:Standard Quantity Standard Price Standardor Hours or Rate CostDirect materials . . . . . 4.6 pounds $2.50 per pound $11.50Direct labor. . . . . . . . . 0.2 hours $12.00 per hour $2.40During the most recent month, the following activity was recorded:a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.b. All of the material purchased was used to produce 4,000 units of Zoom.c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.Required:1. Compute the direct materials price and quantity variances for the month.2. Compute the direct labor rate and effi ciency variances for the month.
ASM Company makes a cologne called Allure. The standard cost for one bottle of Allure is as follows: Standard Manufacturing Cost Elements Quantity x Price = Cost Direct materials 6 oz. x P0.90 = P 5.40 Direct labor 0.5 hrs. x P12.00 = P 6.00 Manufacturing overhead 0.5 hrs. x P 4.80 = P 2.40 P13.80 During the month, the following transactions occurred in manufacturing 10,000 bottles of Allure: 1. 58,000 ounces of materials were purchased at P1.00 per ounce. 2. All the materials purchased were used to produce the 10,000 bottles of Allure. 3. 4,900 direct labor hours were worked at a total labor cost of P56,350. 4. Variable manufacturing overhead incurred was P15,000 and fixed overhead incurred was P10,400. The manufacturing overhead rate of P4.80 is based on a normal capacity of 5,200 direct labor hours. The total budget at this capacity is P10,400 fixed and P14,560 variable. Instructions: (a) Compute the total variance and the variances for direct materials and direct labor…
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.30 per pounds $ 17.02 Direct labor 0.90 hours $ 8.50 per hour $ 7.65 During the most recent month, the following activity was recorded: a. 21,500 pounds of material were purchased at a cost of $2.10 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 2,000 hours of direct labor time were recorded at a total labor cost of $21,000. Required: 1. Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 2. Compute the labor rate and efficiency variances for the month.…

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