Blossom Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. To assign costs to inventories, the company uses weighted-average process costing. The following information was available for 2022: Sales (selling price per unit, $40) Actual manufacturing overhead Selling and administrative expenses Unit production costs: Direct materials (1 kilogram) Direct labour (1/2 hour) Manufacturing overhead Total (a) $7.00 9.00 $4,568,000 739,200 367,360 10.00 $26.00 Units completed and transferred to finished goods Materials purchased Materials used in process Raw materials Work in process inventory (45% complete) Finished goods An inventory count at year end (December 31, 2022) revealed that the inventories had the following balances: Calculate the following amounts for Blossom Inc.: Your answer is partially correct. 156,800 units The January 1, 2022, work in process inventory units are 70% complete. The unit cost of production was the same in 2022 as it was in 2021. 140,000 kilograms 152,320 kilograms 8,960 kilograms (3) Opening Balance: Finished Goods 24,640 units 50,400 units (1) Opening Balance - Raw Materials (2) Opening Balance - Work in Process Inventory The opening (January 1, 2022) balance in units and costs of (1) raw materials, (2) work in process inventory, and (3) finished goods Units 21280 $ $ $ Cost 1485
Blossom Inc. manufactures a single product in a continuous processing environment. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. To assign costs to inventories, the company uses weighted-average process costing. The following information was available for 2022: Sales (selling price per unit, $40) Actual manufacturing overhead Selling and administrative expenses Unit production costs: Direct materials (1 kilogram) Direct labour (1/2 hour) Manufacturing overhead Total (a) $7.00 9.00 $4,568,000 739,200 367,360 10.00 $26.00 Units completed and transferred to finished goods Materials purchased Materials used in process Raw materials Work in process inventory (45% complete) Finished goods An inventory count at year end (December 31, 2022) revealed that the inventories had the following balances: Calculate the following amounts for Blossom Inc.: Your answer is partially correct. 156,800 units The January 1, 2022, work in process inventory units are 70% complete. The unit cost of production was the same in 2022 as it was in 2021. 140,000 kilograms 152,320 kilograms 8,960 kilograms (3) Opening Balance: Finished Goods 24,640 units 50,400 units (1) Opening Balance - Raw Materials (2) Opening Balance - Work in Process Inventory The opening (January 1, 2022) balance in units and costs of (1) raw materials, (2) work in process inventory, and (3) finished goods Units 21280 $ $ $ Cost 1485
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Blossom Inc. manufactures a single product in a continuous processing environment. All materials are added at the
beginning of the process, and conversion costs are incurred uniformly throughout the process. To assign costs to
inventories, the company uses weighted-average process costing.
The following information was available for 2022:
Sales (selling price per unit, $40)
Actual manufacturing overhead
Selling and administrative expenses
Unit production costs:
Direct materials (1 kilogram)
Direct labour (1/2 hour)
Manufacturing overhead
Total
(a)
$4,568,000
739,200
367,360
$7.00
9.00
10.00
$26.00
Units completed and transferred to finished goods
Materials purchased
Materials used in process
Raw materials
Work in process inventory (45% complete)
Finished goods
An inventory count at year end (December 31, 2022) revealed that the inventories had the following balances:
Calculate the following amounts for Blossom Inc.:
Your answer is partially correct.
156,800 units
140,000 kilograms
152,320 kilograms
8,960 kilograms
The January 1, 2022, work in process inventory units are 70% complete. The unit cost of production was the same in
2022 as it was in 2021.
24,640 units
50,400 units
(1) Opening Balance - Raw Materials
(2) Opening Balance - Work in Process Inventory
(3) Opening Balance - Finished Goods
The opening (January 1, 2022) balance in units and costs of (1) raw materials, (2) work in process inventory, and (3)
finished goods
Units
21280 $
$
$
Cost
1485
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