Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor dollar. The company combines direct labor and overhead in computing product cost. Prior to May, when a change in the manufacturing process was implemented, Work-in - Process Inventories were insignificant. The changed manufacturing process, which has resulted in increased equipment capacity, allows increased production but also results in considerable amounts of Work-in - Process Inventory. Also, the company had 1,000 spoiled gallons in May-one-half of which was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process. These data relate to actual production during the month of May: Costs Work-in - Process Inventory, May 1 Direct materials $ 106, 704 Direct labor 14, 359 May costs added: Direct materials 426,816 Direct labor 57, 436 Units Work-in - Process Inventory, May 1 30% complete as to conversion activity 2,000 100% complete as to direct materials Sent to shipping department 24, 500 Started in May 30,000 Work-in - Process Inventory, May 31 80% complete as to conversion activity 6, 500 100% complete as to direct materials Total spoilage (units), in May ? question mark % Spoilage considered normal 50% Stage of processing when spoilage is detected 100% Required 1. Prepare a production cost report for May using the weighted Production Cost Report average method. Note: (Do not round intermediate calculations. Round "Cost per EU" answers to 2 decimal places.)\table [[Carson Paint Company], [ May], [, Production Information], [, Physical Units, \table[[Direct], [Materials]], Conversion], [, Quantity Recap: Physical Units], [Input:], [Beginning WIP,,, %,,%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Input:
Beginning WIP
Units started or Transferred-in
Total units to account for
Output:
Units finished or Transferred-out
Normal spoilage
Abnormal spoilage
Ending WIP
Total units accounted for
Carson Paint Company
Production Cost Report - May
Materials
Production Information
Direct
Materials
Quantity Recap: Physical Units
Physical Units
0
0
Equivalent Units: Weighted-Average
%
%
%
%
%
Conversion
%
%
%
%
%
Transcribed Image Text:Input: Beginning WIP Units started or Transferred-in Total units to account for Output: Units finished or Transferred-out Normal spoilage Abnormal spoilage Ending WIP Total units accounted for Carson Paint Company Production Cost Report - May Materials Production Information Direct Materials Quantity Recap: Physical Units Physical Units 0 0 Equivalent Units: Weighted-Average % % % % % Conversion % % % % %
Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that
are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Direct labor
and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor dollar. The company combines direct labor and overhead
in computing product cost. Prior to May, when a change in the manufacturing process was implemented, Work - in - Process Inventories were insignificant. The changed
manufacturing process, which has resulted in increased equipment capacity, allows increased production but also results in considerable amounts of Work-in - Process Inventory.
Also, the company had 1,000 spoiled gallons in May-one-half of which was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production
process. These data relate to actual production during the month of May: Costs Work - in - Process Inventory, May 1 Direct materials $ 106, 704 Direct labor 14, 359 May costs added:
Direct materials 426,816 Direct labor 57, 436 Units Work-in - Process Inventory, May 1 30% complete as to conversion activity 2,000 100% complete as to direct materials Sent to
shipping department 24, 500 Started in May 30, 000 Work-in - Process Inventory, May 31 80% complete as to conversion activity 6, 500 100% complete as to direct materials Total
spoilage (units), in May ? question mark % Spoilage considered normal 50% Stage of processing when spoilage is detected 100% Required 1. Prepare a production cost report for
May using the weighted average method. Note: (Do not round intermediate calculations. Round "Cost per EU" answers to 2 decimal places.)\table[[Carson Paint Company], [
Production Cost Report - May], [, Production Information], [, Physical Units,\table[[Direct], [Materials]], Conversion], [, Quantity Recap: Physical Units], [Input:], [Beginning WIP,,, %,,%
Transcribed Image Text:Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor dollar. The company combines direct labor and overhead in computing product cost. Prior to May, when a change in the manufacturing process was implemented, Work - in - Process Inventories were insignificant. The changed manufacturing process, which has resulted in increased equipment capacity, allows increased production but also results in considerable amounts of Work-in - Process Inventory. Also, the company had 1,000 spoiled gallons in May-one-half of which was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process. These data relate to actual production during the month of May: Costs Work - in - Process Inventory, May 1 Direct materials $ 106, 704 Direct labor 14, 359 May costs added: Direct materials 426,816 Direct labor 57, 436 Units Work-in - Process Inventory, May 1 30% complete as to conversion activity 2,000 100% complete as to direct materials Sent to shipping department 24, 500 Started in May 30, 000 Work-in - Process Inventory, May 31 80% complete as to conversion activity 6, 500 100% complete as to direct materials Total spoilage (units), in May ? question mark % Spoilage considered normal 50% Stage of processing when spoilage is detected 100% Required 1. Prepare a production cost report for May using the weighted average method. Note: (Do not round intermediate calculations. Round "Cost per EU" answers to 2 decimal places.)\table[[Carson Paint Company], [ Production Cost Report - May], [, Production Information], [, Physical Units,\table[[Direct], [Materials]], Conversion], [, Quantity Recap: Physical Units], [Input:], [Beginning WIP,,, %,,%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Costing Systems
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education