Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 13,800 cases of the drink in October and shipped 10,200 cases to retailers. (Bremen holds no finished goods inventory.) The costs of the resources used by Bremen in October consist of the following. Materials Conversion costs (labor and overhead) $ 87,523 247,427 Required: The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October 31. Note: Do not round intermediate calculations. Cost of cases shipped

Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of 13,800 cases of the drink in October and shipped 10,200 cases to retailers. (Bremen holds no finished goods inventory.) The costs of the resources used by Bremen in October consist of the following. Materials Conversion costs (labor and overhead) $ 87,523 247,427 Required: The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October 31. Note: Do not round intermediate calculations. Cost of cases shipped

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Frills at Large manufactures window blinds. In August, Frills at Large produced 19, 200 window…

A: Conversion costs are the costs incurred in converting direct materials into finished goods.…

Q: show that (a) the Assembly Department used $32,900 of direct raw materials and $38,000 of direct…

A: The assigning of direct material, direct labor and overhead to processing department recorded by…

Q: Required information [The following information applies to the questions displayed below.] Aztec…

A: Activity based costing: Activity based costing is a costing method used by the company to assign the…

Q: Compute the cost of cases shipped and the amount in work-in-process ending inventory as of October…

A: Given in the question: Beginning Work in Process 0 Started Production (in Cases) 9000…

Q: The Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses…

A: The overhead rate is a cost that is allocated to the product or service at the time of production.…

Q: The following events took place for Chi-Lite Inc. during June, the first month of operations as a…

A: A) Chi - Lite Inc. Income statement For the month ended 30 June Sales 1402470…

Q: Part JT is used in one of Timberlake's products. The company's Accounting Department reports the…

A: The Relevant Cost to Make and the Relevant Cost to Buy should be compared in the given question.The…

Q: Part 016 is used by Mcvean Corporation to make one of its products. A total of 19,500 units of this…

A: Lets understand the basics. When decision is required to make between whether to produce internally…

Q: Kima Company manufactures and sells two models of a home appliance. The Standard model is a basic…

A: Keep or drop decision is taken by the management when there are two or more operating segments and…

Q: Blossom Company purchases $50,300 of direct raw materials and it incurs $65,400 of direct factory…

A: The assigning of direct material, direct labor and overhead to processing department recorded by…

Q: Belden Frozen Foods packages a variety of frozen meals and vegetables. In its Saratoga Street plant,…

A: The high-low method is used to separate the fixed and variable costs from the mixed production…

Q: A manufacturer runs costing on a job costing basis (i.e. only ONE Work in Process - WIP Account and…

A: Calculation of Raw Material Utilised= Opening Balance + Purchases - Ending Balance= 14,072 + 76,037…

Q: Oriole Company purchases $53,700 of direct raw materials and it incurs $61,600 of direct factory…

A: The assigning of direct material, direct labor and overhead to processing department recorded by…

Q: Required: 1. Compute the following varlances for June: a. Materials price and quantity variances. b.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking…

A: An income statement is a part of a financial statement that shows the income and expenses that have…

Q: The Od Company makes and sells a single product called a Kitt. Od employs a standard costing system.…

A: Material cost variance is the variance that occurs or arises due to difference in the standard cost…

Q: Sheridan Company purchases $54,700 of direct raw materials and it incurs $63,300 of direct factory…

A: Assembly Department:Direct raw materials used: $32,100Direct factory labor: $42,600Finishing…

Q: Yarn Textiles manufactures laces used in shoes, boots, and sporting goods. The cost to manufacture…

A: Overhead - Overhead refers to that expenses which are not directly allocated to to cost of…

Q: Record the journal entries to record the transfer of goods from process to process.

A: The Process will be cutting, assembly, finishing, and then to the finished goods. Cost of the one…

Q: The following events took place for Focault Inc. during July 20Y2, the first month of operations as…

A: Step 1: An Income statement is a statement showing profit generated by a company for a particular…

Q: Winterfield, LLC manufactures only one product. The direct materials standard calls for 5 pounds of…

A: A variance is caused when there is a difference between a predicted value and the actual value.…

Q: Part "Mendes" is used in one of Shawn's products. The company's Accounting Department reports the…

A: Depreciation on equipment - It is sunk cost so not relevant in decision making

Q: ABC Company Job 101 for the manufacture of 2,200 coats, which was completed during October at the…

A: When spoilage loss is charged to specific job then work in progress inventory will be credited with…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Bremen Fitness Products produces a sports drink. On October 1, it had no work-in-process inventory. It started production of
13,800 cases of the drink in October and shipped 10,200 cases to retailers. (Bremen holds no finished goods inventory.) The
costs of the resources used by Bremen in October consist of the following.
Materials
Conversion costs (labor and overhead)
$ 87,523
247,427
Required:
The production supervisor estimates that the ending work in process is 55 percent complete on October 31. Compute the cost
of cases shipped and the amount in work-in-process ending inventory as of October 31.
Note: Do not round intermediate calculations.
Cost of cases shipped
Work-in-process ending inventory

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $396,010 of materials. • Used $340,050 of direct materials in production. • Incurred $294,400 of direct labor wages. • Applied factory overhead at a rate of 76% of direct labor cost. • Transferred $812,120 of work in process to finished goods. • Sold goods with a cost of $791,220. • Sold goods for $1,404,390. • Incurred $316,650 of selling expenses. • Incurred $126,730 of administrative expenses. Required: a. Prepare the June income statement for Chi-Lite. Assume that Chi-Lite uses the perpetual inventory method. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Colons (:) will fill in where needed. b. Determine the inventory balances at the end of the first month of operations.
A manufacturer operates on a job costing basis (i.e. only ONE Work in Process - WIP - Account and all costs are traceable) The company has recorded the following for a single month of production: Raw Materials - Opening Balance: $14072 , Purchases $76037 and has a Closing Balance of $17977 WIP Information: Conversion costs incurred this period include: Opening balance of WIP was $54540, DL $39742 and OHDs $40023 and the closing balance of WIP was $26620 Finished Goods information: Opening Balance of FG was $55460 and the closing balance was $60914 Required: Trace all costs through to calculate the Cost of Goods Manufactured this month
Blossom Company purchases $50,300 of direct raw materials and it incurs $65,400 of direct factory labor costs. Supporting records show that (a) the Assembly Department used $25,800 of direct raw materials and $38,000 of direct factory labor, and (b) the Finishing Department used the remainder. Record the assignment of the costs to the processing departments using the following format. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials used Assign direct factory labor Raw Materials Inventory $ $ Manufacturing Costs Factory Labor Manufacturing Overhead $ $ Assembly Work in Process $ Finishing
Candace's Candies, Inc. produces gummy bears. The company purchases raw materials, stores them in a warehouse, and then runs them through two processes: production and packaging. During September, the production process incurred the following costs in processing: Wages of workers operating production equipment Manufacturing overhead allocated to the production department Direct materials $50,700 5,000 250,000 Equivalent units of production was 23,000 units for materials and 22,500 units for conversion. Use the FIFO method to compute the September cost per equivalent unit of production for direct materials. OA. $2.42 OB. $2.48 O C. $11.11 OD. $10.87
Please help I am having issues solving this problem, Kansas Supplies is a manufacturer of plastic parts that uses the weighted-average process costing method to account for costs of production. It produces parts in three separate departments: Molding, Assembling, and Packaging. The following information was obtained for the Assembling Department for the month of April. Work in process on April 1 had 108,000 units made up of the following. Amount Degree of Completion Prior department costs transferred in from the Molding Department $ 147,960 100 % Costs added by the Assembling Department Direct materials $ 97,200 100 % Direct labor 35,696 60 % Manufacturing overhead 22,244 50 % $ 155,140 Work in process, April 1 $ 303,100 During April, 508,000 units were transferred in from the Molding Department at…
McClellan Recreation manufactures and sells two models of paddle boards: Starter and Pro. The Starter model is a basic board used for instruction and purchased by novices. The Pro model is made with premium materials and comes with several accessories. The boards are produced to order, and there are no inventories at the end of the year. The cost accounting system at McClellan allocates overhead to products based on direct labor cost. Overhead in year 1, which just ended, was $2,536,800. Data on units sold for year 1 along with the unit sales price and unit direct costs for the two models follow: Sales price per unit Direct materials per unit Direct labor per unit Required: a. Compute product line profits or loss for the Starter model and the Pro model for year 1. b. A study of overhead shows that without the Starter model, overhead would fall to $1,442,000. Assume all other revenues and costs would remain the same for the Pro model in year 2. Compute product line profits for the Pro…