**Beverage Drink Company Production Analysis for July**Beverage Drink Company processes direct materials up to the split-off point where two products, A and B, are produced. Below is the information collected for the month of July:**Direct Materials Processed:**- Total processed: 3,000 liters- Shrinkage: 25%**Production:**- Product A: 1,800 liters- Product B: 450 liters**Sales Price:**- Product A: $15 per liter- Product B: $10 per liter**Cost Details:**The purchasing and processing cost of 3,000 liters of direct materials to the split-off point, yielding 2,250 liters of good products, amounted to $9,500. There were no beginning or ending inventory balances for Products A and B.**Further Processing Options:**- **Product A:** Can be further processed to yield 1,700 liters of Product Z5. - Additional processing cost: $190 - Sale price of Product Z5: $70 per liter - No beginning inventory; ending inventory was 125 liters. - **Product B:** Can be further processed to yield 350 liters of Product W3. - Additional processing cost: $320 - Sale price of Product W3: $75 per liter - No beginning inventory; ending inventory was 25 liters.**Question:**If Product Z5 and Product W3 are produced, what are the expected sales values of the production, respectively?

Given information, •Product A may be processed further to yield 1,700 liters of Product Z5 Product…

Answered: Beverage Drink Company processes direct…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Murray Chemical Company refines a variety of petrochemical products. These data are from the firm's Houston plant: Work-in-process inventory, September 1 Direct materials Conversion Units started in process during September Work-in-process inventory, September 30 Direct materials Conversion Required 1 Required 2 4,760,000 gallons 50% completed 20% completed Required: 1. Compute the equivalent units of direct materials and conversion for the month of September using the weighted-average method. 2. Compute the equivalent units of direct materials and conversion for the month of September using the FIFO method. Direct materials Conversion 6,320,000 2,890,000 Complete this question by entering your answers in the tabs below. Equivalent Units 40% 60% Required 1 gallons gallons completed completed Compute the equivalent units of direct materials and conversion for the month of September using the weighted-average method. Required 2 >
Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. Data from the month of March for the Fermenting Department are as follows: Beginning Work in Process Inventory Started production Completed and transferred out to Packing in March Ending Work in Process Inventory -0- gallons 8,000 gallons 6,550 gallons 1,450 gallons Costs: $0 Beginning Work in Process Inventory Costs added during March: Direct materials $104,000 $ 24,000 $ 45.390 Direct labour Manufacturing overhead Total costs added during March $173,390 The units still in process are 80% of the way through the fermenting process. - 1 -
Beverage Drink Company processes direct materials up to the splitoff point where two products, A and B, are obtained. The following information was collected for the month of July: Direct materials processed: 2,500 liters (with 20% shrinkage) Production: A 1,500 liters B 500 liters Sales: A $15.00 per liter B $10.00 per liter The cost of purchasing 2,500 liters of direct materials and processing it up to the splitoff point to yield a total of 2,000 liters of good products was $4,500. There were no inventory balances of A and B. Product A may be processed further to yield 1,375 liters of Product Z5 for an additional processing cost of $150. Product Z5 is sold for $25.00 per liter. There was no beginning inventory and ending inventory was 125 liters. Product B may be processed…
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs $ 249,055 9,676 $ 910,625 103,140 The ending inventory has 15,200 units, which are 90 percent complete with respect to Refining Department costs. Required: a. Complete the production cost report using the FIFO method. Note: Round "Cost per equivalent unit" to 2 decimal places. Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for…
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory—Refining Beginning inventory(17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) $ 248,055 Refining conversion costs 9,676 Current work (55,300 units started) Mixing costs $ 909,625 Refining costs 103,140 The ending inventory has 15,100 units, which are 90 percent complete with respect to Refining Department costs. Required: Complete the production cost report using the weighted-average method.
Ridgecrest Company manufactures plastic storage crates and has the following information available for the month of April: Work in process, April 1 (100% complete for materials, 40% for conversion) Direct materials Conversion cost Number of units started April costs Direct materials Conversion cost Work in process, April 30 (100% complete for materials, 20% for conversion) 32,100 units $ 48,900 $ 66,900 95,700 units $ 136,500 $ 202,500 48,900 units E3-10 (Algo) FIFO Method [LO 3-4] Required: Using the FIFO method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked on during the period. 2. Calculate the number of equivalent units. 3. Calculate the cost per equivalent unit. 4. Reconcile the total cost of work in process. S
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory—Refining Beginning inventory(17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) $ 239,055 Refining conversion costs 9,676 Current work (55,300 units started) Mixing costs $ 900,625 Refining costs 103,140 The ending inventory has 14,200 units, which are 90 percent complete with respect to Refining Department costs. Required: a. Complete the production cost report using the FIFO method. Note: Round "Cost per equivalent unit" to 2 decimal places. Physical Units Equivalent Units Mixing Department Refining Department Flow of…
Stone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical Units Percent Complete for Conversion Beginning work in process 44,000 54% Ending work in process 40,000 72% Stone adds all materials at the beginning of its manufacturing process. During the month, it started 93,000 units. Required: Using the weighted-average method, reconcile the number of physical units. Using the weighted-average method, calculate the number of equivalent units.
Beverly Plastics produces a part used in precision machining. The part is produced in two departments: Mixing and Refining. The raw material is introduced into the process in the Mixing Department. The cost of the material fluctuates significantly month to month based on market conditions. Information on costs and operations in the Refining Department for September follow: WIP inventory-Refining Beginning inventory (17,500 units, 10% complete with respect to Refining costs) Transferred-in costs (from Mixing) Refining conversion costs Current work (55,300 units started) Mixing costs Refining costs The ending Inventory has 14,200 units, which are 90 percent complete with respect to Refining Department costs. Required: Complete the production cost report using the weighted-average method. Note: Round "Cost per equivalent unit" to 2 decimal places. Flow of units: Units to be accounted for: Beginning WIP inventory Units started this period Total units to account for Units accounted for:…
Sparkling Beverages makes one of its products by way of three separate stages. Details of production for the month ending 31st January were as follows: Process Fermenting Distilling Bottling Input material: 65,000 litres $780,000 - - Material added - $89,000 - Direct Labour Cost $114,600 $153,500 $225,600 Manufacturing Overhead $122,000 $126,000 $193,100 Normal lossess 8% 5% 5% Output 55,000 litres 53,000 48,000 litres Scrap value of losses - $18.00/litre $30.00/litre The nature of the process requires equipment to be cleaned at the end of each month; hence there is no opening or closing stock of product in process.Required:i) The process account for each process: andii) The abnormal loss/gain account(s) showing Sparkling Beverages true loss/gain
The Alfarm Corporation processes raw milk up to the split-off point where two products, cream and liquid skim, are produced and sold. There was no beginning inventory. The following material was collected for the month of February: Direct materials processed: 800,000 gallons (778,500 gallons of good product) Production: Cream 443,500 gallons Liquid skim 335,000 gallons Sales: Cream 424,500 at $13 per gallon Liquid skim 324,000 at $12 per gallon The cost of purchasing 800,000 gallons of direct materials and processing it up to the split-off point to yield a total of 778,500 gallons of good product was $2,350,000. The Alfarm Corporation uses sales value at split off point method of allocating joint costs. What is the value of ending inventory for liquid skim? If you…
Velasquez Company has a cycle time of 4 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of October: RIP beginning, including P10,000 of conversion cost, P35,000; FG beginning, including P6,800 of conversion cost; P30,000; Raw materials purchased on account, P225,000; RIP end, including P13,700 of conversion cost, P23,500; FG end, including P11,100 of conversion cost, P14,800. Direct labor P175,000; Factory overhead P220,000. What is the amount of conversion costs in the cost of goods sold account? a.P646,700 b.P395,000 c.P387,000 d.P259,700

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS