Birch Paper Co. produces the paper used by wallpaper The Mixing Department compiled the following data for manufacturers. Birch's four-stage process includes mixing, cooking, rolling, and cutting. 1 (Click the icon to view additional information.) March: |(Click the icon to view the data.) Read the requirements. Units accounted for: Completed and transferred out 5,000 5,000 5,000 Ending work-in-process 500 100 100 5,500 5,100 5,100 Total units accounted for Direct Conversion Total COSTS Materials Costs Costs Costs to account for: Total costs to account for Cost per equivalent unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On March​ 1, the Mixing Department had 200 rolls of paper in process. During March​, the Mixing Department completed the mixing process for those 200 rolls and also started and completed the mixing process for an additional 4,800 rolls of paper. The department started but did not finish the mixing process for an additional 500 rolls, which were 20% complete with respect to both direct materials and conversion work at the end of March. Direct materials and conversion costs are incurred evenly throughout the mixing process.
Birch Paper Co. produces paper used by wallpaper manufacturers. Birch's four-stage process includes mixing, cooking, rolling, and cutting. 

### Mixing Department Data for March

#### Units Accounted For:
- **Completed and Transferred Out:** 
  - Units: 5,000
  - Direct Materials: 5,000
  - Conversion Costs: 5,000

- **Ending Work-in-Process:** 
  - Units: 500
  - Direct Materials: 100
  - Conversion Costs: 100

- **Total Units Accounted For:**
  - Units: 5,500
  - Direct Materials: 5,100
  - Conversion Costs: 5,100

#### Costs

- **Direct Materials**
- **Conversion Costs**
- **Total Costs**

- **Costs to Account For:**
  - Direct Materials: [Blank]
  - Conversion Costs: [Blank]
  - Total Costs: [Blank]

- **Total Costs to Account For:**
  - Direct Materials: [Blank]
  - Conversion Costs: [Blank]
  - Total Costs: [Blank]

- **Cost per Equivalent Unit:**
  - Direct Materials: [Blank]
  - Conversion Costs: [Blank]
  - Total Costs: [Blank]

This table illustrates the production and cost accounting for Birch Paper Co.'s Mixing Department in March, providing detailed insights into units processed and costs incurred.
Transcribed Image Text:Birch Paper Co. produces paper used by wallpaper manufacturers. Birch's four-stage process includes mixing, cooking, rolling, and cutting. ### Mixing Department Data for March #### Units Accounted For: - **Completed and Transferred Out:** - Units: 5,000 - Direct Materials: 5,000 - Conversion Costs: 5,000 - **Ending Work-in-Process:** - Units: 500 - Direct Materials: 100 - Conversion Costs: 100 - **Total Units Accounted For:** - Units: 5,500 - Direct Materials: 5,100 - Conversion Costs: 5,100 #### Costs - **Direct Materials** - **Conversion Costs** - **Total Costs** - **Costs to Account For:** - Direct Materials: [Blank] - Conversion Costs: [Blank] - Total Costs: [Blank] - **Total Costs to Account For:** - Direct Materials: [Blank] - Conversion Costs: [Blank] - Total Costs: [Blank] - **Cost per Equivalent Unit:** - Direct Materials: [Blank] - Conversion Costs: [Blank] - Total Costs: [Blank] This table illustrates the production and cost accounting for Birch Paper Co.'s Mixing Department in March, providing detailed insights into units processed and costs incurred.
**Cost Analysis for March**

This table details the cost breakdown for a manufacturing process over the month of March. The costs are categorized into three primary components: Direct Materials, Direct Labor, and Manufacturing Overhead Allocated. Each of these components contributes to the Total Costs.

**Columns:**
1. **Direct Materials:** This column captures the costs associated with raw materials used in manufacturing.
2. **Direct Labor:** This column includes the wages paid to workers directly involved in production.
3. **Manufacturing Overhead Allocated:** This column accounts for indirect costs related to production, such as utilities and maintenance.

**Rows:**
- **Beginning Inventory, Mar. 1:** The starting inventory costs as of March 1 are distributed as follows:
  - Direct Materials: $550
  - Direct Labor: $575
  - Manufacturing Overhead Allocated: $170
  - Total Beginning Inventory Costs: $1,295

- **Costs Added During March:** This row shows additional costs incurred throughout March:
  - Direct Materials: $5,366
  - Direct Labor: $3,545
  - Manufacturing Overhead Allocated: $3,360
  - Total Costs Added: $12,271

- **Total Costs:** This row sums up the beginning inventory and the costs added during March:
  - Direct Materials: $5,916
  - Direct Labor: $4,120
  - Manufacturing Overhead Allocated: $3,530
  - Total Costs: $13,566

This breakdown provides a clear analysis of how each cost component contributes to the overall expenses for the month.
Transcribed Image Text:**Cost Analysis for March** This table details the cost breakdown for a manufacturing process over the month of March. The costs are categorized into three primary components: Direct Materials, Direct Labor, and Manufacturing Overhead Allocated. Each of these components contributes to the Total Costs. **Columns:** 1. **Direct Materials:** This column captures the costs associated with raw materials used in manufacturing. 2. **Direct Labor:** This column includes the wages paid to workers directly involved in production. 3. **Manufacturing Overhead Allocated:** This column accounts for indirect costs related to production, such as utilities and maintenance. **Rows:** - **Beginning Inventory, Mar. 1:** The starting inventory costs as of March 1 are distributed as follows: - Direct Materials: $550 - Direct Labor: $575 - Manufacturing Overhead Allocated: $170 - Total Beginning Inventory Costs: $1,295 - **Costs Added During March:** This row shows additional costs incurred throughout March: - Direct Materials: $5,366 - Direct Labor: $3,545 - Manufacturing Overhead Allocated: $3,360 - Total Costs Added: $12,271 - **Total Costs:** This row sums up the beginning inventory and the costs added during March: - Direct Materials: $5,916 - Direct Labor: $4,120 - Manufacturing Overhead Allocated: $3,530 - Total Costs: $13,566 This breakdown provides a clear analysis of how each cost component contributes to the overall expenses for the month.
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